Does gender matter in financial literacy? A case study of young people in Tirana

Abstract

Financial literacy has become an important issue because many studies have established a connection between financial literacy and financial decision making for people. The aim of this study is to identify the differences in financial literacy based on the gender of young people in Tirana, Albania. A questionnaire was designed, covering financial knowledge, financial attitude and financial behaviour. Principal component analysis was performed to identify the main factors for both genders. Even though similarities were found, evidence reinforced the existence of the differences in gender regarding financial decision making as a consequence of financial literacy. Compared to young females, young males reflected to deal with risk, willingness to act and reading to improve financial knowledge. In contrast to this, young females were more concerned about money management and how to spend money related issues.