The financial literacy of the Maltese generation Y : an analysis

Abstract

PURPOSE: The main objective of this dissertation was to analyse the financial literacy of one segment of the Maltese population, that is, the Maltese Generation Y. This particular area of research was chosen due to the increase in the need for people to be financially literate and being able to manage their finances in the correct manner. DESIGN: Besides interviewing some employees who for the financial regulator in Malta, that is, the Malta Financial Services Authority, a survey was opted for as the best method to research whether this segment of the Maltese population is financially literate or not. For the purpose of this research six areas of interest were chosen, namely, personal finance, financial education and advice, banking, insurance, investments, and general information. FINDINGS: A very good response rate was achieved and the results are said to be highly indicative of the Maltese Generation Y at large. The Generation Y was found to be lacking financial education in terms of the financial definitions that were asked. However, they were found to be more risk-adverse to borrowing. CONCLUSIONS: Most were found to be aware of their finances and budget regularly. However, there is room for improvement and higher level of educations should be achieved in the future through more effort in financial education. The way to improve financial literacy is mainly through better financial education. VALUE: Financial literacy is a necessity in today's world, since everyone faces financial decisions. More focus should be given to this topic, mainly through more local research in order to direct educational efforts where they are mostly needed.