Is finance literacy linked to working-class people's money expenditure and savings behaviour?

Abstract

The study aimed to determine whether financial literacy affects how working-class people spend and save their money. The primary objective was to establish how important it is to have a fundamental knowledge of finance in order to make better financial decisions and, as a result, more readily improve living conditions. In order to conduct the study, 93 randomly selected participants from various nationalities and backgrounds were given survey questions. The sole requirement for participation was that participants must be covered by a current work contract in order for the responses about the balance of their income and expenses to be more accurate. Along with basic questions like age and income, they were asked about their money spending, income balance, history of financial education, inflation knowledge, investment attitude, and investment risk perception. The relationship between financial behaviour and education has been found to exist. People who have received financial education often handle their money responsibly, have better investment attitude, and have clear risk assessments when it comes to investment decisions.