Is There Any Link between Level of Instruction and Financial Choices? A Study on a Generation Y-Based Survey

11 Pages Posted: 23 Jan 2017

See all articles by Iuliana Bitca

Iuliana Bitca

Ca Foscari University of Venice

Andrea Ellero

Ca Foscari University of Venice - Department of Management

Paola Ferretti

Ca Foscari University of Venice - Dipartimento di Economia

Date Written: December 23, 2016

Abstract

Generally investors use heuristics in their process of decision-making with the aim of finding short-cuts and simplified roads to quite sophisticated answers. We conducted a survey on about 250 young people (18-27 years old) concerning their financial literacy and economic choices, given an education level which is predominantly very high (73% enrolled in a bachelor degree, 80% took part to at least some basic finance or economics courses). The survey was designed to study the influence of financial-economic literacy on the flaws occurring in financial decisions of young people (the so called generation Y), mainly with reference to biases, overconfidence, framing. The results of the survey give an insight into the behavior of a new and educated generation in typical economic decision frameworks, which could be a useful tool for stakeholders. In fact, being aware of the psychological component of the financial decision is a key factor to better understand and manage risk.

Keywords: Financial Literacy, Financial Education, Data Mining, Decision Rules

JEL Classification: G02, G11, C91, C65

Suggested Citation

Bitca, Iuliana and Ellero, Andrea and Ferretti, Paola, Is There Any Link between Level of Instruction and Financial Choices? A Study on a Generation Y-Based Survey (December 23, 2016). University Ca' Foscari of Venice, Dept. of Economics Research Paper Series No. 38, Available at SSRN: https://ssrn.com/abstract=2903835 or http://dx.doi.org/10.2139/ssrn.2903835

Iuliana Bitca

Ca Foscari University of Venice ( email )

Dorsoduro 3246
Venice, Veneto 30123
Italy

Andrea Ellero

Ca Foscari University of Venice - Department of Management ( email )

San Giobbe, Cannaregio 873
Venice, 30121
Italy

Paola Ferretti (Contact Author)

Ca Foscari University of Venice - Dipartimento di Economia ( email )

Cannaregio 873
Venice, 30121
Italy
+39-041-2346923 (Phone)

HOME PAGE: http://www.unive.it

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