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Sustainable Households Financial Behaviour in EU and Implications on Developing Financial Literacy

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Circular Business Management in Sustainability (ISCMEE 2022)

Part of the book series: Lecture Notes in Management and Industrial Engineering ((LNMIE))

Abstract

Avoiding financial problems and good management of one’s income and assets is connected to people’s well-being, accumulation of capital in the economy and is essential element for stability and sustainable growth. The paper focuses on the relations between financial literacy of the population and the key indicators used by Eurostat to assess the financial status and sustainable behaviour of the households in European Union, linked to savings, investment, indebtedness, and wealth. Partial correlation coefficients and multiple regression models were used to control for the influence of countries’ geographical position and economic development. The results showed that financial literacy score was related to the Gross household saving rate and Household net financial assets ratio, while its connection with Gross investment rate of households, Households investment to Gross Domestic Product ratio and Gross debt-to-income ratio of households remained insignificant. In two models with significant financial literacy effect the division of the countries on the West-East axis was also crucial factor. Both further analysis in this area and policy making at European Union level focused on sustainable development, would benefit a lot if Eurostat starts collecting panel data about member states’ financial education status.

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Author information

Authors and Affiliations

  1. D. A. Tsenov Academy of Economics, 2 Em. Chakarov Str, Svishtov, Bulgaria

    Lyubomir Todorov, Aleksandrina Aleksandrova & Marin Marinov

Authors
  1. Lyubomir Todorov
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  2. Aleksandrina Aleksandrova
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  3. Marin Marinov
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Corresponding author

Correspondence to Lyubomir Todorov .

Editor information

Editors and Affiliations

  1. Izmail State University of Humanities, Izmail, Ukraine

    Viktor Koval

  2. Department of Logistics Management, Yaşar University, İzmir, Turkey

    Yigit Kazancoglu

  3. Institute for Research in Circular Economy and Environment “Ernest Lupan”, Technical University of Cluj-Napoca, Cluj-Napoca, Romania

    Elena-Simina Lakatos

Appendix

Appendix

Model results (EViews 7.0).

Dependent variable: Y1

   

Method: Least squares

   

Date: 08/02/22 Time: 11:54

  

Sample: 1 24

    

Included observations: 24

   

Variable

Coefficient

Std. Error

t-Statistic

Prob

C

−6.011133

4.609493

−1.304077

0.2063

WE

4.403195

1.982852

2.220638

0.0375

FINLIT

0.248023

0.088972

2.787636

0.011

R-squared

0.415476

Mean dependent var

8.6975

Adjusted R-squared

0.359807

S.D. dependent var

5.979022

S.E. of regression

4.783937

Akaike info criterion

6.084874

Sum squared resid

480.6072

Schwarz criterion

6.23213

Log likelihood

−70.01848

Hannan-Quinn criter

6.123941

F-statistic

7.463344

Durbin-Watson stat

1.791544

Prob(F-statistic)

0.00356

   

Heteroskedasticity Test: White

  

F-statistic

1.984927

Prob. F(4,19)

 

0.1378

Obs*R-squared

7.073312

Prob. Chi-Square(4)

0.1321

Scaled explained SS

5.849963

Prob. Chi-Square(4)

0.2106

figure a

Dependent variable: Y2

  

Method: Least squares

  

Date: 08/02/22 Time: 11:54

  

Sample: 1 24

  

Included observations: 24

  

Variable

Coefficient

Std. Error

t-Statistic

Prob

C

5.68191

1.95679

2.90369

0.0088

NS

2.180811

1.100141

1.982301

0.0614

FINLIT

−0.04374

0.04914

−0.89003

0.384

GDP

7.88E-05

2.69E-05

2.931995

0.0082

R-squared

0.453466

Mean dependent var

7.060417

Adjusted R-squared

0.371485

S.D. dependent var

2.360391

S.E. of regression

1.871293

Akaike info criterion

4.242148

Sum squared resid

70.03471

Schwarz criterion

4.43849

Log likelihood

−46.9058

Hannan-Quinn criter

4.294237

F-statistic

5.531408

Durbin-Watson stat

2.026911

Prob(F-statistic)

0.006235

   

Heteroskedasticity Test: White

  

F-statistic

0.501425

Prob. F(8,15)

0.8369

Obs*R-squared

5.063996

Prob. Chi-Square(8)

0.7507

Scaled explained SS

3.701978

Prob. Chi-Square(8)

0.883

figure b

Dependent Variable: Y3

  

Method: Least Squares

  

Date: 08/02/22 Time: 12:51

  

Sample: 1 24

  

Included observations: 24

  

Variable

Coefficient

Std. Error

t-Statistic

Prob

C

3.171617

1.218746

2.602362

0.0163

FINLIT

0.018942

0.023277

0.813769

0.4245

R-squared

0.029221

Mean dependent var

4.140833

Adjusted R-squared

-0.01491

S.D. dependent var

1.256946

S.E. of regression

1.266278

Akaike info criterion

3.389697

Sum squared resid

35.27614

Schwarz criterion

3.487868

Log likelihood

−38.6764

Hannan-Quinn criter

3.415742

F-statistic

0.66222

Durbin-Watson stat

2.0414

Prob(F-statistic)

0.424498

   

Heteroskedasticity Test: White

  

F-statistic

1.302553

Prob. F(2,21)

0.2929

Obs*R-squared

2.648687

Prob. Chi-Square(2)

0.266

Scaled explained SS

1.047821

Prob. Chi-Square(2)

0.5922

figure c

Dependent variable: Y4

  

Method: Least squares

  

Date: 08/02/22 Time: 11:54

  

Sample: 1 24

  

Included observations: 24

  

Variable

Coefficient

Std. Error

t-Statistic

Prob

C

15.7621

48.35953

0.325936

0.7477

FINLIT

0.680185

1.046664

0.64986

0.5228

GDP

0.001977

0.000713

2.772665

0.0114

R-squared

0.38223

Mean dependent var

102.5275

Adjusted R-squared

0.323395

S.D. dependent var

60.34667

S.E. of regression

49.63877

Akaike info criterion

10.76389

Sum squared resid

51744.15

Schwarz criterion

10.91115

Log likelihood

−126.167

Hannan-Quinn criter

10.80296

F-statistic

6.496614

Durbin-Watson stat

2.559884

Prob(F-statistic)

0.006363

   

Heteroskedasticity test: White

  

F-statistic

1.360773

Prob. F(5,18)

0.2849

Obs*R-squared

6.583361

Prob. Chi-Square(5)

0.2535

Scaled explained SS

6.878252

Prob. Chi-Square(5)

0.2299

figure d

Dependent variable: Y5

  

Method: Least squares

  

Date: 08/02/22 Time: 11:55

  

Sample: 1 24

  

Included observations: 24

  

Variable

Coefficient

Std. Error

t-Statistic

Prob

C

−0.13912

0.630016

−0.22081

0.8274

WE

1.085972

0.271012

4.007102

0.0006

FINLIT

0.030933

0.012161

2.543692

0.0189

R-squared

0.55535

Mean dependent var

1.941346

Adjusted R-squared

0.513003

S.D. dependent var

0.936958

S.E. of regression

0.653858

Akaike info criterion

2.104616

Sum squared resid

8.978144

Schwarz criterion

2.251873

Log likelihood

−22.2554

Hannan-Quinn criter

2.143684

F-statistic

13.11409

Durbin-Watson stat

1.544486

Prob(F-statistic)

0.000201

   

Heteroskedasticity test: white

  

F-statistic

1.476518

Prob. F(4,19)

0.2486

Obs*R-squared

5.69121

Prob. Chi-Square(4)

0.2234

Scaled explained SS

4.651064

Prob. Chi-Square(4)

0.325

figure e

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Todorov, L., Aleksandrova, A., Marinov, M. (2023). Sustainable Households Financial Behaviour in EU and Implications on Developing Financial Literacy. In: Koval, V., Kazancoglu, Y., Lakatos, ES. (eds) Circular Business Management in Sustainability. ISCMEE 2022. Lecture Notes in Management and Industrial Engineering. Springer, Cham. https://doi.org/10.1007/978-3-031-23463-7_9

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  • DOI: https://doi.org/10.1007/978-3-031-23463-7_9

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