Abstract

Literacy has many different dimensions and it is closely linked to the ability of oral communication, digital competency and an ability to critically analyse the information media. Financial literacy is one of the higher forms of basic literacy. It is the ability of the individual to understand basic economic principles, manage personal finances and ensure financially yourself and your family. Financial literacy is also understood as an ability to use our knowledge, skills and experience to manage our financial resources effectively in order to ensure lifelong financial security for our household. Financial literacy is a continuum of abilities that are influenced by variables e.g. age, family, employment and culture. The basic goal of the research is to map the financial literacy of generation X and Y in the context of the euro introduction in Slovakia 10 years following the introduction of the single currency. In order to achieve the research objectives we applied primary data collection to obtain information about the researched issue. An anonymous questionnaire survey was conducted among the respondents. Data collection among the residents was realized with the help of an agent, but also an online questionnaire was provided for the respondents in time interval of 6-20th December, 2018. Basic statistic indicators (crosstabs, distribution, homogeneity of variances and ANOVA) were used to verify our assumptions. The paper presents the results of an empirical analysis which showed differences between the generations X and Y in relation to the financial literacy connected with the context of euro introduction. The surveyed age group of generation Y proved to be the least informed about the exact date of the euro introduction and the exchange rate of the euro and the Slovak koruna. Active involvement of MEPs within a framework of an intensive information campaign is essential. The main objective would be to bring closer the EU economic policy to economically active people and make them less resistant and uninterested in the policy of the EU due to lack of information. The knowledge associated with the practical returns of our research can help other countries to establish a common currency, resp. point to the possible effects of the introduction of the euro for different generations.

Keywords: euro, financial literacy, generation X, generation Y, Slovakia

JEL Classification: E49, E59, G00, J16.

Cite as: Korcsmaros, E., Seben, Z., Machova, R., Feher, L. (2019). Promotion of euro introduction in Slovakia: financial literacy of generation X and Y. Marketing and Management of Innovations, 3, 11-21. https://doi.org/10.21272/mmi.2019.3-01

This work is licensed under a Creative Commons Attribution 4.0 International License

References

1. Barton, S. The Workforce – FourGenerationsWorkingTogether [online]. 2011 [cit. 2019-02-06]. Accessed: http://susan-barton.suite101.com/the-workforce—four-generations-working-together-a386381
2. Belas, J., Gavurova, B., Cepel, M., & Kotaskova, A. (2018). Relationship of gender to the position of Slovak University students on the socio-economic determinants of the business environment and the development of entrepreneurship. Entrepreneurship and Sustainability Issues, 6(2), 968-978.
3. Carlson, B. Befektetes jozan esszel. Budapest: A4C Books, 2017. 242 o. ISBN 978-615-00-0260-6.
4. Cassandra Report. AttitudeShiftsToward Money, Work and CommunicationPreferences [online]. 2015 [cit. 2019-02-10]. Accessed: http://www.marketwired.com/pressrelease/deep-focus-cassandra-report-gen-z-uncovers-massive-attitude-shifts-toward-money-work-2004889.htm
5. Cowan, M. et al. Generation Z: The newkidsontheblockhavearrived. London: HappenGroupLtd, 2014, 64 p
6. HodgesHumble, L. PreparingForGen Z [online]. 2007 [cit. 2019-02-06]. Accessed: http://laurie-hodges-humble.suite101.com/whats-up-with-y-a36596
7. IPSOS MediaCT. Generation Z: A LookattheTechnology and Media Habits of Today’sTeens [online]. 2013 [cit. 2019-02-10]. Accessed:
8. Kiyosaki, R.T. Fejleszdpenzügyi IQ-dat. Budapest: BagolyvarKonyvkiado, 2010. 200 o. ISBN 978-963-9730-69-4.
9. Lazányi, K., & Bilan, Y. (2017). Generetion Z on the labour market: do they trust others within their workplace?. Polish Journal of Management Studies, 16, 78-93, ISSN 2081-7452
10. Lucenicova, K. Zbierka uloh z financnej gramotnosti. Bratislava: NUCEM, 2013. 30 s. ISBN 978-80-896338-09-3.
11. Luptakova, N. – Kriskova, E. Generacia Y: Vyskum. Banska Bystrica: UMB, 2010. 18 s.
12. Madura, J., Casey, M., Roberts, S. J. Personal Financial Literacy. New Jersey: Pearson Education, 2010. 318 p. ISBN 978-0-13-211660-2.
13. McCridle, M., Wolfinger, E. The ABC of XYZ: Understandingthe Global Generations. The ABC of XYZ, 2010, 239 p. ISBN 1-74224-563-3
14. Michalova, I., Cerna, E. Ľudiasinetvoriarezervy. Dostavajusadoproblemov. In Financial Report. ISSN 2454-0552. 2017, 1(5)., p. 16-19.
15. Nguyen, T.A.N., Rozsa, Z. (2019). Financial Literacy and Financial Advice Seeking for Retirement Investment Choice. Journal of Competitiveness, 11(1), 70–83. https://doi.org/10.7441/joc.2019.01.05
16. Nguyen, T.A.N., Rozsa, Z., Belas, J., Belasova, Ľ. (2017b). The effects of perceived and actual financial knowledge on regular personal savings: Case of Vietnam. Journal of International Studies, 10(2), pp. 278-291. doi:10.14254/2071-8330.2017/10-2/19
17. Nguyen, T.A.N.,  Belas, J., Habanik, J., Schonfeld, J. (2017a). Preconditions of financialsafetyduringlifecycle: thefinancialliteracy and retirementplanningin Vietnam, Journal of Security and SustainabilityIssues6(4): 627-636. http://doi.org/10.9770/jssi.2017.6.4 (8).
18. Nowak, J. SomeFactsAboutGeneration Y [online]. 2010 [cit. 2019-02-06]. Accessed: http://joe-nowak.suite101.com/some-facts-about-generation-y-millennials-a276270
19. Takacs, Sz. (2016) Bevezetes a matematikai statisztikaba, AntareszKiado, ISBN 978-6158-0544-09
20. Williams, A. Move Over, Millenials, Here ComesGeneration Z. InThe New York Times. ISSN 0362-4331, 2015, vol. CLXV, No. 56,990, p. A16-17