engleski

Revealing the fundamentals of young adults financial capability

Financial capability represents consumers’ capacity to undertake comprehensive financial activities, thereby assuring individual financial well-being. Currently, there is no comprehensive measuring instrument of financial capability and financial behaviour, especially in the context of young adults. The aim of the paper is to explore elements of financial capability and behaviour among young adults, in order to contribute to the development process of a measurement instrument for financial capability and financial behaviour. The research aims to analyse the ideas, associations, and attitudes of young adults between 17 and 25 years old about the concept of financial capability and its external and internal elements. The paper examines notions of financial situation and attitudes towards money, money management, and financial planning, financial opportunities, purchase decision-making and spending control and, informing and education. The research was conducted on the sample of 78 young adults within 11 focus groups, in the period from January to March in 2021, in five Croatian cities. Based on research questions and focus groups notes, a list of codes and sub-codes was created and used during data processing in NVivo software for qualitative data analysis. The paper concludes how young adults mostly understand the concept of financial capabilities and they are on the right track in the context of its definition. Young adults perceived investigated elements as a strong determinant of their financial capability. Attitudes towards money, money management and financial planning, financial opportunities, purchase decision-making and spending control, and informing and education represent positive determinants while the financial situation is perceived as a negative financial capability determinant.

financial capability ; financial behaviour ; young adults ; focus groups ; Croatia

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