Financial educationMulticultural research conducted in

Romania, Poland, the Czech Republic and Slovakia

Bucharest, 14th of November 2013

KRUK Group

Y O U R F I N A N C E S I N G O O D S H A P E

„Financial Education” study

Multicultural research on financial education has been conducted on representative samples of Polish, Czech, Slovak and Romanian adults

Timing: August - November 2013 Methodology:

Poland: CATI N=1000 (TNS) The Czech Republic: Omnibus N=1016 (Stem/MARK) Slovakia: Omnibus N=1014 (Focus) Romania: CATI N=800 (TNS CSOP)

Y O U R F I N A N C E S I N G O O D S H A P E

Do you think you received in your youth enough education about proper home finance management?

Central European inhabitants feel they lack sufficient knowledge about finance. They believe they haven’t received the required financial knowledge. This situation applies to all countries surveyed and Slovaks expressed the relatively strongest feeling of that sort. Two out of three Slovaks believe that, when they were young, they have not received adequate knowledge in matters of household budget management.

Yes No Hard to say0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

42%

57%

1%

35%

63%

2%

40%

59%

1%

32%

66%

2%

Romania Poland Czech Republic Slovakia

Y O U R F I N A N C E S I N G O O D S H A P E

Does early-started financial education help in one’s everyday life?

Almost everyone in Poland, Romania, the Czech Republic and Slovakia underlines that early financial education is helpful in everyday life.

Yes No Hard to say0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

90%

7%3%

92%

6%2%

95%

5%0%

88%

8%4%

Romania Poland Czech Republic Slovakia

Y O U R F I N A N C E S I N G O O D S H A P E

What do people know about finances? – Prompted, multiple answer

How to m

anage home budget -how to

spend w

isely to

make ends m

eet

When is

it worth

it to ta

ke a loan

How to analyze

conditions a

nd costs

of a cr

edit

How to underst

and financial c

ontracts

(e.g lo

ans, insu

rances)

Where to

find advice on home budget m

anagement

How to act

when overdue payments/debts

occur

0%

10%

20%

30%

40%

50%

60%

70%

53%

37%30%

26% 26%31%

57%

28%24% 26%

30%27%

45%36%

24% 23% 23% 23%

51%

39%32%

27%23%

30%

Romania Poland Czech Republic Slovakia

According to the general opinion, practical knowledge of finance is scarce. It can be said that only one-third of residents surveyed in the Central European countries have practical skills in the field of finance. We are talking about ordinary tasks encountered in everyday life, such as choosing the best credit offers, understanding the loan contract provisions or procedures in the event of difficulties with the repayment of bills.

Y O U R F I N A N C E S I N G O O D S H A P E

Who needs financial education to move easily around the financial world and wisely manage their home budget now and in the future?

According to the respondents in Romania, Poland, the Czech Republic and Slovakia, the responsibility for preparing for entry into the world of everyday finance should lie to the largest extent with the family and the school . Slovaks declare they rely most on their parents. 60% of Slovaks believe that their financial education should be received from parents. This factor is the smallest among Poles, of which only 34% would rely on family. Most of them indicated the school. The vast majority of people in Central European countries believe that their financial education should be part of the educational system. 16% of Romanians even think that this stage of education should be included at the pre-school stage. There is a difference in opinions between Romanians’ and Slovaks’ responses, and Poles’ and Czechs’ responses. Poles and Czechs share the opinion that the most important role in financial education should be played by the school (Poland 56%, Czech Republic 55%). The Slovaks and Romanians move the educational role to a greater extent towards higher education (Romania 63% , Slovakia 65%). According to the survey, banks and other financial institutions, including companies servicing debt, should feel responsible to educate the public on financial issues.

Romania Poland Czech Republic Slovakia0%

10%

20%

30%

40%

50%

60%

70%

48%

34%

54%

60%

16%

10%

3%7%

44%

56% 55%

43%

63%

28%

14%

65%

51%

31%

18%

45%

19%15%

4%

21%

Parents/Family/Caretakers Kindergarten School (primary/ gymnasium) School of higher education

Banks and other financial institutions Debt management companies (e.g. KRUK)

Y O U R F I N A N C E S I N G O O D S H A P E

What rules do you apply / would apply in the financial education of your children? – multiple answer

The study showed cultural differences in children’s education. The Czechs and Slovaks emphasize to the greatest extent the practice in financial education. 97% of people in the Czech Republic and 93% of Slovaks say they include the child in the household budgeting. Giving your child pocket money to dispose of is the most preferred form of education among Poles (64%). Romanians opt for a different solution, which is not giving children money, but rather deposit the savings to secure their future (30%).

I give him pocket money to use at he

wishes

I give money for household chores

Turn on children in the process of budgeting,

such as the school supplies

I reward for good grades

I give money every time my child asks for

them

I deposit money with the thought of the

childs future

Do not give my child any money, I pay for

all

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

15%12% 12%

5% 4%

30%

21%

64%

24%

49%

26%

11%7%

36%

75%

39%

97%

37%

7%

62%

18%

69%

35%

93%

34%

15%

57%

26%

Romania Poland Czech Republic Slovakia

Y O U R F I N A N C E S I N G O O D S H A P E

Where does lack of financial knowledge lead to? – Prompted, multiple answer

Residents of Central European countries are aware that the lack of financial knowledge can lead to several consequences. Among them the most frequently indicated was "falling into debts". Three quarters of all the inhabitants of the countries surveyed indicate that risk. In addition, there is a consensus among the respondents about the risk of unreasonable and excessive spending. Many respondents believe it is a frequent risk.

Differences occur between countries, when we look at the risk of demonstrating consumer awareness. Residents of the Czech Republic and Slovakia, much more than Poles and Romanians, are likely to make purchases on unfavorable terms, or would show the inability to advertise goods. A similar difference between countries is visible in terms of savings. 40% of Slovaks and 42% of Czechs believe that the lack of financial knowledge leads to lack of savings, while in Romania and Poland the risk is higher and could affect two-thirds of the population.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

70%

77%

66% 67%

59%56%

66%

3%

69%71%

68% 67%

57%

48%

63%

1%

54%

70%

42%

55%

30%

7%

42%

0%

57%

73%

45% 47%

28%

6%

40%

1%

Romania Poland Czech Republic Slovakia

Thank you!

Iwona Słomska, Member of the Board, KRUK S.A.Marketing, PR and Human Resources

ul. Legnicka 56, 54-204 Wrocław info@kruksa.pl, www.kruk.eu

Grupa Kapitałowa KRUK