Financial Capability Among Low-Income Households in Rural Parts of Poland

• Autorzy: Tomasz Potocki
• Języki publikacji: EN

Abstrakty

EN

This paper examines low-income households' financial capability by looking at their financial literacy, financial behaviour as well as financial inclusion. Using the data from micro-study, the author proves that even though financial literacy among low-income households is very low, most financial behaviour (especially the basic ones like managing a financial budget) are rather high. It seems that being financially illiterate does not stop low-income households from being financially capable, which might be mainly connected with some social and environmental factors that shape their capability and help low-income members of households to find some other ways of achieving satisfactory level of financial behaviour than just through increasing financial literacy. Moreover, having little money forces low-income households to become very careful financial decision-makers. Additionally, the multivariate analysis has shown that being financially literate (especially risk and debt literate) and being financially included are key latent factors in understanding financial capability among low-income households from rural regions of Poland. These two factors also play a significant role in understanding the adaptation to low-income among the polled households (measured by the marginal effects of pseudo-R2 ratio in logit model).(original abstract)

Słowa kluczowe

EN

Personal finance; Income; Household income; Rural areas; Poverty

PL

Finanse osobiste; Dochody; Dochody gospodarstw domowych; Obszary wiejskie; Ubóstwo

• Czasopismo: Argumenta Oeconomica
• Rocznik: 2019
• Numer: nr 2 (43)
• Strony: 85--114

Twórcy

autor

Tomasz Potocki

• University of Rzeszów, Poland

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Identyfikatory

DOI

10.15611/aoe.2019.2.04