Abstract:

The capability to manage personal finances efficiently, plan personal tax position and pay taxes on time has become increasingly important for today’s financial consumers, and for the government and state budget as well. Unfortunately, findings of recent studies have shown that many people, especially the youth, have an inadequate level of financial knowledge and financial skills, and poor level of financial behavior. Tax education is often ignored within financial education programs, so it is questionable whether young people have an opportunity to learn about taxes, and subsequently have an adequate level of necessary tax knowledge and tax skills. The purpose of this paper is twofold. Firstly, it provides evidence of an inadequate level of tax literacy among the youth, and secondly, it discusses possible mechanisms through which the current situation could improve. The findings of this analysis may provide important implications for both economics and education policymakers in the future development of financial and tax literacy programs.