Personal Finance Management Skills and Financial Sustainability Literacy Knowledge of Generation Y: An Empirical Analysis in Lithuania

Abstract

Purpose We research Generation Y personal finance management skills by integrating three financial literacy measurement perspectives: financial knowledge, behaviour, and attitude towards sustainability. Design/methodology/approach A financial literacy measurement approach aligned with the OECD methodologies and comparative approach to evaluate the financial literacy competence of the Lithuanian youth (N=426) in the global context were applied. Analysis of variance using Levene’s test for equality of variances and t-test for equality of means were employed to check for the differences in Generation Y financial literacy patterns. The correlation between all three financial literacy perspectives was evaluated. Findings The results unfold Lithuanian millennials’ intermediate level financial literacy competence: moderate financial knowledge, positive financial behaviour, and more positive financial attitude towards sustainability, where the latter exceeds the global sustainability concern. Furthermore, our tests indicate the differences in Generation Y financial knowledge in terms of gender and education and the differences in their attitude on financial sustainability in terms of gender, education, income source, and monthly income. Moreover, our research evidences the statistically significant proportional relationship between Generation Y financial behaviour and their attitude towards the sustainability principles application in the financial services. Originality/value In terms of financial literacy, global research extensively focuses on selected countries; Lithuania, the Baltic States, or Eastern and Central European countries are seldom considered. Previous research identifies the existing differences between age groups when evaluating their financial literacy and level of personal finance planning skills. In contrast, our research contributes to increasing the body of knowledge of financial sustainability literacy, and to a better understanding of financial literacy by shedding light on the patterns of Generation Y in Lithuania and provides roots for developing insights for both finance literacy policy makers and financial service providers.