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This paper investigates the multidisciplinary theoretical context of financial capabil- ity and provides a critical examination of 14 relevant theoretical frameworks. To this end, the paper defines financial capability and develops a new theoretical framework of financial capability termed the personal financial management system. Financial capability is defined as the capacity of consumers to undertake comprehensive fi- nancial activities and thereby achieve personal financial well-being. The exploration of financial capability includes the concepts of financial literacy and psychological financial capability, where the latter represents automatic and controlled mental pro- cesses. Recent advances in behavioural science have profoundly changed the realm of personal finances, and it is, therefore, essential to acknowledge the importance of the intuitive reasoning that shapes our financial decision making. As part of the financial management system's throughput, together with individual motivation and oppor- tunity within the personal financial management system, financial capability forms financial behaviour. The framework identifies three groups of relevant antecedents of financial capability including sociodemographic factors, cognitive and affective fac- tors and personality and values. By constructing a comprehensive theoretical model, this paper contributes to the literature by providing greater consistency in the defini- tions of capability and its related terms, encouraging academic discussion and affirm- ing the much- needed directions for future research.

Purpose – The aim of this paper was to challenge the purpose of financial education in the context of financial literacy of adolescents, and to test the efficiency of the developed high-school study book and program “My money, my future”. Also, the purpose was to identify the predictors of financial knowledge before conducting the workshop, as well as the characteristics of adolescents with best performances on the financial knowledge test. Design/Methodology/Approach – The data was collected from a purposive sample of teenagers who participated in “My money, my future” program from October 2016 to February 2018 and the questionnaire employed was a three-part tool. Findings and implications – Financial interventions contribute to young people’s financial knowledge. Interest, previous financial education and ownership of a bank account were found to be valid and reliable predictors of higher levels of knowledge among teenagers. Furthermore, most high school students in the sample reported they had already engaged in saving behaviour, and more than half of them claimed to have bank accounts. Financial knowledge after the workshop was significant compared to their knowledge before the workshop. Greater knowledge before the workshop led to significantly higher levels of knowledge afterwards. Differences in the levels of financial knowledge were also tested with respect to gender. Limitations – The sample only includes high-school students and the research was conducted exclusively on the territory of the Republic of Croatia. Originality – The paper emphasized the importance of financial education programs in increasing the level of financial literacy and efficiency of future financial decision making among adolescents.

Educating audiences towards positive transformational change and targeted towards the improvement of quality of life in the field of strategic communication is almost a fairy tale. The controversy surrounding the Croatian pension fund system and its reform, low pensions, the negative demographic trends and low levels of financial and retirement literacy has put pension funds in a constant position of dealing with crisis communication strategies. At the same time, strategic communication in the industry is very traditional and is usually unnoticed. Taking a step back from a traditional goal of customer acquisitions, Croatian pension funds have pooled their efforts within the Association of Pension Funds and Pension Fund Insurance Companies in order to act as a unified group when dealing with joint interest. Recognizing the need of society to raise awareness of personal engagement in the process of retirement savings, they have decided to use education as a tool of strategic communication. This chapter has the purpose of showing how purposeful content-based valuable information can be created with the aim of influencing attitudes and behaviours in the field of personal and pension savings. During the project a quantitative study was conducted in order to investigate the effectiveness of the education on the attitudes and knowledge related to pension fund savings. The results of the quasi experiment indicate that the education has increased respondents' knowledge and positive attitudes towards retirement savings.

This paper tends to reveal whether individuals are more prone to behave like Homo economicus or irrational individuals led by short-run motivation. According to the traditional economic theory, individuals behave perfectly rational and make their financial decisions based on their knowledge. On the other hand, behavioral theory neglects rational behavior assumed by traditional economics. Individuals do not act in their best interest and are prone to make irrational and wrong decisions. In the behavioral economics literature, as opposed to homo economicus, the irrational behavior is represented by the character of Homer Simpson who is often unreasonable, short-run-motivated, responsibility-averse, and does not use the acquired knowledge adequately. The purpose of this paper is to investigate the impact of financial knowledge, as a result of financial education and self-efficacy, on subsequent financial behavior. Therefore, based on the results of the survey conducted among Croatian citizens, this research uses regression modeling to assess how financial knowledge and self-efficacy affect responsible financial behavior among Croatian consumers. Results of the research are valuable for proper educational policy and providing insight into motives behind the efficient financial behavior.

Background: A large body of empirical literature indicates that gender and financial literacy are significant determinants of individual financial performance. Objectives: The purpose of this paper is to recognize the impact of the variable financial literacy and the variable gender on the variation of the financial performance using the regression analysis. Methods/Approach: The survey was conducted using the systematically chosen random sample of Croatian financial consumers. The cross section linear regression model is estimated in order to assess how gender as a dummy variable and financial literacy as an ordinal categorical variable impact financial performance. Results: The results indicate that the average value of financial performance for men is higher than the average value of financial performance for women at the same financial literacy level. Furthermore, a higher level of financially literacy is related to a higher level of financial performance. Conclusions: Both gender and financial literacy have a statistically significant impact on individual financial performance. Increasing financial literacy and understanding gender differences in terms of financial literacy and financial well-being should be of interest to financial educators in their struggles to improve financial situation of citizens and for educators to create financial education programs intended for men and women.

Sound consumption decisions determine individuals’ well-being ; responsible financial consumption behaviour (RFCB) affects not only their finances but also their societal status and emotional state. The failure to manage personal finances responsibly may result in serious long‐term consequences for individuals and society overall. In order to evaluate the concept of RFCB, this study combines two established theoretical frameworks—the family management system and the theory of planned behaviour. The paper investigates the relationships among RFCB, responsible financial attitudes, financial literacy and behavioural control. Its theoretical model is tested on a random sample of 494 respondents and analysed using PLS-SEM. The results confirm the formation of responsible consumption behaviour by six formative elements: self-control in spending, planning for the future, seeking information, education, rational decision- making and solvency. The findings also indicate that all three focal variables have a direct effect on RFCB.

The aim of this paper is threefold. First, to detect and categorize Croatian financial consumers’ financial literacy and analyze whether the different levels of financial literacy is statistically significant in terms of socio-demographic characteristics. The second objective is determining whether a respondent’s debt behavior differs based on their financial literacy. Further, the paper aims to examine sources of different debt behavior in relation to financial literacy. Cluster analysis is used to categorize financial literacy and determine whether a respondent’s financial literacy differs due to gender and level of disposable income. Here, the nonparametric chi- square test is applied. The effects of financial literacy on debt behavior are investigated using a rank-based nonparametric test, specifically the Kruskal Wallis H test. Finally, the paper will examine the source of differences in debt behavior based on different levels of financial literacy, and a post hoc analysis using Dunnett’s C test will be conducted. The results suggest that respondents exhibit different debt behavior due to different levels of financial literacy. In addition, the level of disposable household income per household member was found to be statistically insignificant with respect to different levels of financial literacy, while such levels were found to be statistically significantly different when compared to a respondent’s gender.

Cilj ovog rada je identificirati učinke poreznih promjena nastalih tijekom financijske krize na dohodovne nejednakosti među zemljama članicama Europske unije. Naime, nedavna je financijska i fiskalna kriza promijenila trendove u oporezivanju u najvećem broju zemalja članica Europske unije. Zemlje članice bile su različito pogođene krizom, prije svega, zbog različitosti povezanih uz makroekonomske neravnoteže prisutne u ekonomiji. Stoga su se među njima razlikovale i politike koje su se provodile uvjetovane upravo makroekonomskim i fiskalnim uvjetima. Rad uključuje teoretsku podlogu, komparativni prikaz postojećih razlika između poreznih sustava zemalja članica Europske unije te analizu prednosti i nedostataka različitih poreznih oblika. Kako bi se što preciznije definirale te razlike, testirane su reforme provedene u tri temeljna porezna oblika (koji opterećuju rad, kapital i potrošnju) kao i socijalni doprinosi korištenjem panel analize s fiksnim i varijabilnim efektom kroz vremensku seriju koja obuhvaća razdoblje od 2000. do 2011. godine. Porezi imaju značajan redistributivni učinak što svakako utječe na dohodovne nejednakosti, a uvelike ovisi i o vrsti poreznog oblika u primjeni. Većina je zemalja pokušala konsolidirati svoje javne financije i poboljšati porezne sustave kako bi potakla rast. U radu je postavljena hipoteza kako implementacija određenih fiskalnih mjera utječe na smanjenje nejednakosti te su pruženi dokazi kako socijalni doprinosi i porezi koji opterećuju rad utječu na statistički značajno poboljšanje dohodovnih nejednakosti među zemljama članicama Europsku unije. Iz navedenog se izvodi zaključak kako porezna politika, osobito izbor odgovarajućeg poreznog oblika, smanjuje dohodovne nejednakosti u Europskoj uniji u promatranom razdoblju.

The relationship between financial literacy and financial behavior is important, as individuals are increasingly being asked to take responsibility for their financial wellbeing, especially their retirement. Analyzing of individual savings and attitudes towards retirement planning is important, as these types of investments are a way of preserving security during years of financial vulnerability. Research indicates that individuals who do not save adequately for their retirement, generally have a relatively low level of financial literacy. This research investigates the relationship between financial literacy and retirement planning in Croatia. To analyze the relationship between financial literacy and planning for retirement, maximum likelihood logistic regression analysis was used. The paper shows that those who answer financial literacy questions correctly are more likely to have a positive attitude towards retirement planning and are more likely to save for retirement, ensuring them of higher levels of financial security in retirement. The Goodness-of-Fit evaluation for the estimated logit model was performed using the Andrews and Hosmer-Lemeshow Tests.