Kateřina Berková

Faculty of Finance and Accounting, University of Economics, Prague

Czech Republic

Email: katerina.berkova@vse.cz

Approaches to the development of cognitive process dimensions in financial literacy: an empirical study

Pavel Krpálek

University College of Business in Prague,

Czech Republic

Email: krpalek@vso-praha.eu

Abstract. The article explores various approaches to the development of cognitive process dimensions in financial literacy. It is based on the empirical research of the financial literacy levels among 1,207 fifteen-year-old Czech students compared with 18 countries worldwide (OECD, 2014a). Applying the regression model, the study has examined the strength of the relationship between the actual financial competence of 284 Czech students aged 17-18, studying economic disciplines, and their school performance. The research has produced the following conclusions: (a) a weak dependence of actual skills on school performance; (b) inherently associated consequence of school performance is not corresponding to the actual financial skills; (c) a low level of financial competence in the dimensions - Remember, Understand and Apply. Proceeding from the research results, it will be desirable to focus on the transfer of economic methods and foreign practice into the learning process, thereby contributing to the improvement of the current situation in Czech Republic.

Received: July, 2016

1st Revision: August, 2017

Accepted: October, 2017

DOI: 10.14254/2071-8330.2017/10-3/13

JEL Classification: A12, A20, B0

Keywords: economics, financial literacy, cognitive process dimension, Programme for International Student Assessment