Financial literacy, education and risk aversion: a survey of French students

Abstract

Purpose

Financial literacy is generally seen as an important factor explaining a broader set of investment behaviors. In the context of a weak financial knowledge in France, this article focuses on the particular situation of Generation Z (individuals born after 1995) and more particularly management students likely to be involved in financial decisions in the near future.

Design/methodology/approach

The analysis is based on a survey conducted in the Fall of 2019, through a questionnaire distributed to 300 students enrolled in a French business school.

Findings

The results indicate that financial knowledge is poor for students who do not follow a specialized course in finance. This research also demonstrates the importance of risk behavior, showing that risk adverse students are also those with the lowest level of financial literacy.

Originality/value

This article contributes to the academic literature by focusing on students in France. It is the first study to examine Gen Z financial literacy and its implications. It raises awareness on the importance of financial education in the education curriculum.

Citation

Le Fur, E. and Outreville, J.-F. (2022), "Financial literacy, education and risk aversion: a survey of French students", Managerial Finance, Vol. 48 No. 9/10, pp. 1530-1543. https://doi.org/10.1108/MF-10-2021-0509