Acquisition of Financial Literacy as a Life Skill: A Study on Financial Literacy Awareness of Students

Acquisition of Financial Literacy as a Life Skill: A Study on Financial Literacy Awareness of Students

Başak Gezmen (Istanbul Medipol University, Turkey) and ihsan Eken (Istanbul Medipol University, Turkey)
DOI: 10.4018/978-1-7998-2559-3.ch012

Abstract

Alongside the phenomena such as crisis, prosperity, etc., which emerged with the increase of global competition, the development of literacy levels has become critical. In the acquisition and development of financial literacy, first of all, the current situation should be determined, then the relevant policies should be developed and the literacy should be acquired through the necessary trainings to be provided. This chapter determines the relationship between the acquisition of financial literacy awareness as a life skill and the participation of the students who took the Introduction to Economics course in the Faculty of Communication at Istanbul Medipol University in 2018-2019 in the axis of survey method. Authors discuss the students' financial literacy awareness and skill in general. The chapter also gains insight into the situation of similar courses such as economics and finance to improve the perspective on financial literacy awareness.
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The Concept And Importance Of 'Literacy'

The concept of literacy, which we often hear today and is the subject of research fields, is a process that goes beyond reading and understanding in general. The emergence and continuous discussion of concepts such as health literacy and media literacy point to a process of competence aimed at every field and the necessity of this process. For example, a media literate is someone who perceives and analyzes the media correctly. So why is it necessary to understand the media correctly? Because hundreds of media messages we encounter every day are actually fictional. In other words, the media does not always present the facts to us. It produces a simulated world made up of fiction. In many serials, advertising and similar media messages, the world we face comprises areas specially designed for us, which have a high level of credibility. The necessity of being competent to understand what is real and what is fiction arises. In order to make a true interpretation between the real world and the fiction world, the individual must be subject to a successful education process, must educate himself correctly, investigate, analyze and question the normative rather than accepting it as it is.

In order to ensure competence in every subject, appropriate training programs are also organized. For instance, some of the products we encounter every day in the markets and many of which we buy may have expired. Or, to confirm whether any product we will buy from the pharmacy will be effective in the treatment process of our ailment, it is necessary to examine the package insert supplied with the drugs and make verification with our previous researches. Throughout this whole process, the individual actually takes part in the literacy process by observing, researching and analyzing.

Key Terms in this Chapter

Financial Literacy: it is to be able to master and apply all the general information about finance, which is a life skill.

Saving: Saving is to accumulate the components like foreign exchange, precious metals owned or will be owned by individuals.

Investment: Investment is the use of goods and values to generate income.

Budget: Budget is the balance of income and expenditure of individuals, institutions and even public institutions.

Finance: Finance is the supply of the provision of stock certificate, currency, precious metals like gold under favorable conditions to the individuals who need them.

Economy: Economy is a discipline that analyses the relations of production and consumption.

Questionnaire: Questionnaire is a form of research method used in the study areas such as commercial, academic, etc.

Literacy: Literacy is to have the ability in a subject. It is the person who has all the required knowledge and information about the related field.

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