Financial literacy and financial well-being among generation-Z university students: Evidence from Greece

Financial knowledge has become an essential skill because of the instability of global markets, asymmetric information in those markets, increasing complexity of financial products, and the rapidly increasing growth in financial technology (Fintech). This study aims to be the first among its kind to evaluate the relation between financial literacy, financial fragility, and financial well-being in parallel with identifying their determinants. For this purpose, we design and distribute a questionnaire to a random sample of 456 university students in Greece. The university students represent Generation Z that experienced the effects of a unique in duration and consequences financial crisis. We analyze the data by using cross-tabulations, chi-square tests, logistic regressions, and a marginal effect analysis. The results show that male students, students who keep expense records, or their father is highly educated are more financially literate. We also examine the dimensions of financial fragility, and the results show that financially literate students are better able to cope with an unexpected financial shock. Thus, financial literacy can be a key driver of financial well-being among Greek university students. Furthermore, we discuss the likely policy prescriptions while accounting for related behavioral aspects and technological developments.