THE INFLUENCE OF THE COVID 19 PANDEMIC ON FINANCIAL EDUCATION

Authors

  • Nicoleta Gianina BOSTAN Faculty of Economic Sciences and Business Administration, Doctoral School, Transilvania University of Brasov, Romania, nicoleta.motoasca@unitbv.ro https://orcid.org/0000-0001-6296-5922

DOI:

https://doi.org/10.24193/subbnegotia.2021.3.05

Keywords:

Covid-19, financial education, personal finances.

Abstract

Pandemic situation has changed the way we work, learn and shop. Digital finance has helped individuals and companies to meet challenges. The forecasts for the impact of COVID 19 on the world economy are pessimistic. The latest revision of the International Monetary Fund shows a deeper recession than the initial estimates for 2020 and a slower recovery in 2021. Some industries were completely blocked, others were significantly declining. The impact of the restrictions imposed by the epidemiological situation were negative in industries like the automotive industry, airlines, travel agencies, tour operators, hotels, restaurants, entertainment and construction. There were also industries whose activity had an increase due to the pandemic like courier, transport and health services. The need to maintain social distance has pushed forward digital solutions for payments and banking services. People have been taken out of their comfort zone when it comes to managing personal finances. The discrepancies between poor and rich countries became more evident during this pandemic. Lack of activity, limited opportunities to spend money and uncertainty have increased saving behavior. According to Eurostat, the saving rate of households in the euro area increased by 16.6% in the second quarter of 2020 compared to the first, but the investment rate decreased by one percent. Speaking of the crisis in general and the financial crisis in particular, it has been shown that it has significantly changed the financial behavior of individuals. This paper aims to analyze how financial education led to different financial behavior during the crisis and the exclusions circumstances that may occur.

JEL classification: I15, A29, D14.

Author Biography

Nicoleta Gianina BOSTAN, Faculty of Economic Sciences and Business Administration, Doctoral School, Transilvania University of Brasov, Romania, nicoleta.motoasca@unitbv.ro

Nicoleta Gianina Bostan (Motoaşcă)

References

Acemoğlu D. (2021), Remaking the Post-Covid World, World Bank

Bowen, T. et al. (2020), Adaptive Social Protection: Building Resilience to Shocks. International Development in Focus, Washington, DC: World Bank, http://hdl.handle.net/10986/33785

Bundervoet T. et al. (2021), The Short-Term Impacts of COVID-19 on Households in Developing Co untries: An Overview Based on a Harmonized Data Set of High-Frequency Surveys

Lakner, C. et al. (2021), Updated estimates of the impact of COVID-19 on global poverty: Looking back at 2020 and the outlook for 2021, World Bank

Hill, R. and Narayan, A. (2020), “COVID-19 and Inequality: A review of the evidence on likely impacts and policy options”. Centre for Disaster Protection Working Paper 3

KPMG International, (2020), Responding to consumer trends in the new reality, COVID-19 pulse survey

OECD (2021), Digital delivery of financial education: design and practice. www.oecd.org//financial/education/digital-delivery-of-financial-education-design-andpractice.htm

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Published

2021-09-30

How to Cite

BOSTAN, N. G. (2021). THE INFLUENCE OF THE COVID 19 PANDEMIC ON FINANCIAL EDUCATION. Studia Universitatis Babeș-Bolyai Negotia, 66(3), 77–90. https://doi.org/10.24193/subbnegotia.2021.3.05

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Section

Articles