LEGAL MINDS AND FINANCIAL KNOWLEDGE: SURVEY ANALYSIS OF FINANCIAL LITERACY AMONG MACEDONIAN LAW STUDENTS

Abstract

Financial literacy is an important competency that empowers individuals to manage their resources and
make prudent financial choices. In our work, we focus on examining financial literacy among law students
in the Republic of North Macedonia. We conducted a survey with 129 law students from the University
Ss. Cyril and Methodius in Skopje, the most prominent and oldest university in the country. The students
demonstrated high knowledge of banking and credit and low knowledge in more complex financial areas,
such as the share market, compound interest rate, and time value of money. Moreover, we used ANOVA
and logistic regression to examine how different factors impact financial literacy. The analysis of the
variance showed that there is a statistically significant difference between the students from various ethnic
backgrounds and students originating from different regions. The logistic regression was employed to
analyze the impact of socio-demographic, educational, and personal characteristics of the students on their
financial knowledge. The results suggested that only region is a statistically significant socio-demographic
predictor of financial knowledge. Personal characteristics, including financial influence and financial
attitudes, have a favorable and statistically significant impact on the financial literacy of students, while the
impact of financial behavior has proved to be positive but insignificant. The results from the study can
further be used by the relevant financial regulators and entities in the country to advance the learning
environment about finance competencies. We also recommend the innovation and modernization of the
curriculums of law schools by integrating courses, training, and workshops that will strengthen students'
financial knowledge.