STUDENTS' FINANCIAL LITERACY AND POLICIES FOR ITS DEVELOPMENT

The paper is dedicated to students' financial literacy development. The study is based on PISA data and analyses factors of two types: family and school ones. The Kruskal- Wallis H test, Jonckheere-Terpstra test is used to find significant differences between the groups. Regression research is based on the ordinary least squares method and t-statistics. Financial literacy is not knowledge, it is a skill or even an ability. Therefore, parental behavioral factors are very important for its improvement and development. Financial literacy is the only type of literacy that positively correlates with parental International Socio-Economic Index of Occupational Status (ISEI), including the highest ISEI of the father or mother. Thus, the first and most important issue in policy that will stimulate the development of each type of literacy is the creation of positive work environments for single parents. However, each model includes just one explanatory variable. The most significant for all students and female students is the father's ISEI. Whereas, for male students, it has the highest ISEI. Thus, this type of literacy does not directly depend on the mother's ISEI, unless it is the highest one. Financial literacy does not depend on school factors. The overall effect of the family factors that were analyzed is about 0.35 percent of literacy variations. (C) 2020 INT TRANS J ENG MANAG SCI TECH.