Determination of financial literacy rate of individuals in the participation bank: Erzincan province

Every individual has to make consumption in order to survive. While the consumption behavior shown affects financial decisions, the same may be true for the opposite situation. Accurate and timely financial decisions increase the individual's welfare and prevent him from making wrong choices. Therefore, the impact of financial decisions on quality of life is extremely important. Many reasons such as the rapidly developing economy in the 21st century, the changing needs of individuals and the demographic structure of society reveal the importance of the concept of financial literacy. Individuals located in the future plans of retirement, to pass more easily seen in the economic sense depends on the development of financial literacy. Financial literacy is important not only for the income level of individuals but also for their financial security. An investor who does not know the economic condition of the bank or the company that owns the purchased stock, the state of debt-equity or the stage they are in crisis management will not be able to predict what threats are waiting for him. Being aware of the importance of credit cards, high interest loans obtained from banks and the importance of the private pension system in recent years, helps to eliminate the lack of information about financial services and informs individuals about the situations in which financial instruments will be used. In this study, it is aimed to determine the financial literacy levels of individuals with accounts in the participation bank and to measure the relationship between financial literacy level and demographic factors. It is also aimed to determine the effect of financial literacy level of individuals on managing their financial situation and saving behavior. A survey was conducted with 211 people who are financial consumers in Erzincan. In the study, it was determined that individuals had medium level financial information. As a result of the analysis, it was found that there is a relationship between the level of financial literacy and demographic factors of individuals. On the other hand, individuals with a good level of financial literacy did not have difficulty in managing their own financial situation.