Abstract:

In today's modern society, a person's life "revolves" around money to a large extent. Financial literacy is the ability to understand and apply various financial skills in practice.

Unfortunately, many consumers do not have the necessary level of financial education to manage their finances. The lack of financial education can explain why many Slovaks struggle, for example, with saving and investing money. Some changes in consumer habits and financial products make it difficult for Slovaks to manage their finances. In the past, most people used cash for everyday purchases. Today, they use credit cards more often. In 2019, credit utilization represented 19% of payments compared to 12% in 2017.The way we shop has also changed. Online shopping is now the best option for many, which can make it easier to use and extend credit, which is an all too convenient way to quickly accumulate debt. The credit card companies, banks and other financial institutions are flooding consumers with credit opportunities—the ability to apply for credit cards or pay off one card with another. Without proper knowledge, we can easily get into financial problems. It is essential that individuals strengthen their financial knowledge so that they can manage their day-to-day financial lives and at the same time have a better outlook on the future. The financial literacy is important for many reasons. One of the main reasons is the growing financial responsibility. Today, many people must manage their retirement accounts, student debt, mortgage debt, and online business accounts, among other things, and to create a personal or family budget.

In our article, we examined the level of financial literacy of a selected group of residents in Slovakia. The sample group was created from 180 randomly selected respondents within the city of Rajec aged 19-65. We obtained the data base through a questionnaire that contained 20 questions. The answers to the questions provided us with information about the profile and level of financial literacy of individual respondents. To process the obtained data, we first used a simple classification of quantitative traits. We used descriptive statistics tools to create an overview of the obtained data. We compiled tables of the frequency distribution of the observed signs. For a quick and clear presentation of the survey results, we also used a graphic representation of the frequency distribution of the observed signs.

In the second phase, we used the tools of causal analysis of statistical data. We investigated the causal relationship between age, education and financial status on the one hand and the level of financial education of respondents on the other. In the article, we present interesting findings and propose suitable recommendations for the education system in Slovakia in the field of financial literacy.

Keywords:

Financial literacy, OECD and PISA test results for the SR education system in the field of financial literacy, qualitative and quantitative research.