ORCID
Beata Świecka: 0000-0002-9216-1914
Keywords
personal finance, consumer over-indebtedness, financial literacy, PLS-SEM
Abstract
Background and purpose of the article: The main aim of the article is to present financial literacy (FL) and consumer over-indebtedness (OI) according to the primary survey in Poland. The auxiliary aim is to analyse the importance of financial literacy in reducing consumer over-indebtedness from a generational perspective. Over-indebtedness is a significant problem in personal finance because it leads to a situation in which household members cannot settle their financial obligations on time, negatively affecting their economic stability and prospects for long-term financial security (D’Alessio, Iezzi, 2013). It is becoming increasingly common in the country and around the world. It has a negative impact on consumers and the economy.
Methods: The author conducted primary research using a survey questionnaire. The survey was conducted in Poland in 2022 on 1051 consumers. The analysis of survey data was conducted using the PLS-SEM method.
Results and added value: The research results indicate that financial literacy as an independent factor alone does not play a significant role in reducing consumer over-indebtedness, but that analyses in combination with other variables shows that analysis is more effective when financial literacy is not isolated. The most sensitive group in the financial literacy and over-indebtedness study is Generation Z (GenZ), which has the lowest level of financial literacy while at the same time has the lowest financial reserves and savings, thus constituting the most exposed group to the risk of over-indebtedness. The added value could be the author’s proposition of the Financial Literacy Index (WF1), which is compared to the worldwide Financial Literacy Big Five Index (BIG 5), introduced by Lusardi (Stanford University) and Michell (Wharton University) (Lusardi, Michell, 2014).
Acknowledgments
Funding
The research was funded by the Regional Excellence Initiative. ‘Improving the quality of scientific research in economics with particular emphasis on the service sector’, implemented under the ‘Regional Excellence Initiative’, Ministry of Science and Higher Education, Grant/Award Number: 001/ID/2018/19.
Declaration of Conflicting Interests
The author declared no potential conflicts of interest with respect to the research, authorship, and publication of the article.
Declaration About the Scope of AI Utilization
The author did not use an AI tool in the preparation of the article.
Recommended Citation
Świecka, B. (2025). Generational Perspective of Financial Literacy and Consumer Over-Indebtedness. Survey Evidence from Poland. Journal of Banking and Financial Economics, 2025(1), 1-17. https://doi.org/10.7172/2353-6845.jbfe.2025.1.1
First Page
1
Last Page
17
Page Count
17
Received Date
24.10.2024
Revised Date
09.01.2025
Accept Date
05.03.2025
DOI
10.7172/2353-6845.jbfe.2025.1.1
JEL Code
G14; G10; L83; Z20; G12
Publisher
University of Warsaw
