Abstract:

Financial literacy is the ability to make informed judgments and to take effective decisions regarding the use and management of money. Financial literacy enables individuals to improve their overall well-being. Research has shown that levels of financial literacy worldwide are unacceptably low. Financial literacy is considered an essential and important area in every-day decision making process. Considering economic and social importance of financial literacy in this paper we apply statistical methods to identify the main determinants of financial literacy, based on empirical study. This research will investigate how demographic factors, including gender, age, and educational level, influence financial literacy levels. A representative sample of 1400 Poles was examined using financial literacy questionnaire. All calculations and visualization are conducted in R.