Business, Management and Accounting
8 years ago

Financially illiterate students' risk aversion hindering national economic growth.

Public Finance Quarterly
An Empirical Study of Financial Literacy versus Risk Tolerance Among Higher Education Students
Katalin Huzdik, Dániel Béres, Erzsébet Németh

Paper Summary

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The survey looked at how well college students understand money and how willing they are to take risks with it. They found that most students are cautious with money and don't want to start their own businesses. Surprisingly, students' willingness to take risks doesn't depend on how much they know about finance or how confident they are in their knowledge. Being too cautious with money could stop students from taking advantage of financial opportunities and could hurt the economy. The study suggests that young people should have a realistic view of their abilities, be willing to take risks, and be able to start their own businesses.