Determinants of the actual financial knowledge–multivariate logistic regression

Abstract

This study aims to investigate the actual financial knowledge of different groups of Romanian adults, based on a survey conducted by the Institute of Financial Studies in 2023. The novelty of the paper consists in the use of logistic regression technique to measure the impact of independent variables on the actual financial knowledge of the Romanian adults, while considering new psychological variables into the model, bearing in mind Romanians’ ex-communism history and Latin background. The findings indicate a positive impact of the perceived financial knowledge, the possibility to cover major expanses, the age, and the higher education of the respondents on their actual financial knowledge index. The results are useful for individuals, government, financial institutions, and financial education providers to understand the main influencing factors of the actual financial knowledge of adults. These could support the development of financial education policies.