Determination of Factors Affecting the Financial Literacy of University Students in Eastern Anatolia using Ordered Regression Models

Abstract

Financial literacy is a factor that has a significant effect on financial development, stabilization and the economy. This study determined the factors affecting the financial literacy levels of formal and secondary education undergraduate students at Atatürk University. The study population was formal and secondary education undergraduate students at Atatürk University. A questionnaire was sent to 1,008 students who agreed to participate in the survey in the last quarter of 2018. In the study, factors affecting the financial literacy levels of undergraduate students were determined by ordered logistic regression and ordered probit regression analysis. The ordered logistic regression model was the best according to model comparison criteria. According to the results of this model, age, class, basic science field, gender, marital status, monthly personal income, watching eco-finance news status, and economic knowledge variables were found to be factors that affected financial literacy levels. In the study, it was determined that the financial literacy levels of women, those under 25 years old, university students in science, in the fourth year and above, having a monthly personal income of ₺1251 and below, single, not watching economic and financial news and with lower economic literacy were low. This study emphasizes the need to target these groups. These groups’ financial literacy levels need to be improved.