Determinants of positive financial behaviors: A study among university students

Abstract

This study investigated the determinants of positive financial behaviors of university students in Estonia and Turkey. The study consisted of three main national groups enrolled in Estonia and Turkey: Estonian, Russian, and Turkish students. Logistic regression analysis was performed for estimations. Findings suggested that savings-oriented lifestyle, high income, working experience, and actual and pre-knowledge on personal finance had a positive impact on students’ financial behaviors. It was found that to have at least one credit card had a positive impact on having a retirement account, while it had a negative impact on saving for long-term goals. This study also indicated that parents’ economic support had a positive impact on having a retirement account. Policymakers could use these determinants to develop more effective financial education programs, especially before higher education. It can be useful to involve parents in the financial education programs of their children. This may raise parents’ and students’ interest in financial literacy, and increase the likelihood that students engage in more positive financial behaviors. © 2021, The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG.