Consumers' financial literacy as tool for preventing future economic crisis.
The objective of this paper is to investigate the nature and extent of financial literacy among consumers in European countries, and identify factors determining the decisions of consumers on the financial services market. To this end a survey was conducted using a structured questionnaire in Germany, Poland, Romania, Spain and the UK. The research results have provided evidence that the level of financial literacy in selected countries is low, sometimes at the level of financial illiteracy, resulting in consumer misunderstanding and misinterpretation of basic financial services. The lowest level of financial literacy occurred in countries where financial crises had the strongest influence on economy. Research results have also shown that financial illiteracy depends on gender, level of education and profession. Financial literacy significantly affected the financial decisions of individual consumers. Specifically, financial illiteracy had a negative effect on the image of financial institutions, neutral information, and personal financial needs as well on advocate information.