Options for Measuring Legal and Financial Literacy

Author:

Zahrajová Katarzyna,Krügerová Martina,Kozieł Michal,Bučková Michaela,Štverková Hana

Abstract

The definition of financial and legal literacy is still evolving. In today's uncertain times, it is particularly important to define and understand financial and legal literacy correctly. Their focus is seemingly different but they have much in common. Lack of legal literacy can affect financial behaviour and contribute to increasing financial insecurity. According to research, respondents with different levels of legal literacy exhibit different legal behaviours. A properly established measurement of these two areas is the basis for their awareness and proper use in future decision-making. However, we need to know whether and which methods can be used to examine the level of financial and legal literacy in society, and for what purpose they will be composed. The aim is to help quantitative research to find a method of investigation such that its measures assess the level of both financial and legal literacy. The methods are presented to highlight the possible shortcomings and limitations of these methods, and the interpretation of the indicators and results.

Publisher

Technical University of Liberec

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