Abstract:

Finance and finance knowledge are part of the modern world today. Financial literacy is a highly debated topic of current policies, institutions and experts. Financial literacy enables responsible decisions to be made. At the same time, it enables responsible and competitive behavior in society of every person. The paper aims to assess financial literacy of students of a selected Czech university. The study focuses on their savings, available funds, and general financial knowledge. The data was obtained by quantitative research using a questionnaire survey among respondents (n = 484). The data was collected at the end of 2016 among full-time bachelor and master degree students of Business and Administration at the Faculty of Economics and Management of the Czech University of Life Sciences Prague. The results demonstrate that 86.6% of the respondents are aware of their regular personal income and costs. Seventy-seven and a half per-cent of the respondents save a proportion of the income as a reserve for unforeseen expenditures while 54.5% of the respondents reported basic financial knowledge on the Czech National Bank’s minimum required reserves and 46.3% of the respondents are aware of loan policies and annual interest rates. A high correlation between the education level and financial knowledge was demonstrated by the data statistical analysis.

Keywords:

Cost, education, financial literacy, income, student, university.