The Role of Financial Education in Changing Young People’s Behavior in the Relationship between Consumption, Savings and Investment in the Age of Digitalization

Vîrjan Vlad Valentin (), Vîrjan Daniela () and Ursea Daria Ana ()
Additional contact information
Vîrjan Vlad Valentin: Bucharest University of Economic Studies, Bucharest, Romania
Vîrjan Daniela: Bucharest University of Economic Studies, Bucharest, Romania
Ursea Daria Ana: Bucharest University of Economic Studies, Bucharest, Romania

Proceedings of the International Conference on Business Excellence, 2025, vol. 19, issue 1, 3446-3459

Abstract: Financial education plays a key role in shaping young people’s behavior, helping to raise awareness, especially in terms of consumption. It helps young people to distinguish between wants and needs, to become more rational in managing purchases, to manage their available budget efficiently and to avoid impulse spending. Financial education also gives young people the tools they need to save and invest by setting clear medium- and long-term goals, using appropriate financial instruments for risk assessment and diversifying investment portfolios, such as shares, bonds, mutual funds, or real estate. The present study is based on a quantitative methodology, carried out through a questionnaire survey, with the objective of analyzing the behavior of young economists regarding the relationship between consumption, savings and investment, before and after they participated in a financial education course. The research was carried out in two stages: in the first stage, the majority of young people adopted a consumer behavior and a small percentage were saving; in the second stage, after acquiring financial literacy, young people experienced a significant change in behavior, and the percentage of those who started to save and then invest it in different goals increased significantly (from 20-30% before the course to 40-60% after the course). In the context of digitization, the acquisition of sound financial knowledge is crucial to cope with financial challenges and risks, enabling young people to make informed decisions and benefit from the opportunities that digitization offers in managing money, savings and investments.

Keywords: investment; consumption; savings; financial education; digitization (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.2478/picbe-2025-0263 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:vrs:poicbe:v:19:y:2025:i:1:p:3446-3459:n:1035

DOI: 10.2478/picbe-2025-0263

Access Statistics for this article

Proceedings of the International Conference on Business Excellence is currently edited by Alina Mihaela Dima

More articles in Proceedings of the International Conference on Business Excellence from Sciendo
Bibliographic data for series maintained by Peter Golla ().