The Institute for Youth Development KULT has carried out a study on financial literacy among young people in BiH, with the support of the Embassy of Sweden. It is one of the few national-level studies on this topic focused specifically on youth. The study was based on a survey conducted on a representative sample of 1,069 young people from across the country.
The findings show low levels of financial literacy among young people in BiH. This is especially evident when compared to the general population in BiH and to results from 39 countries where the OECD has conducted similar studies.
According to the data, formal education plays a key role in developing financial literacy: young people with higher levels of education have a better understanding of financial concepts. Financial literacy is also shaped by gender, age, and socioeconomic status. One example is the fact that young women in BiH are less financially literate than young men.
Most young people understand basic economic terms such as inflation and interest, but lack a deeper understanding of more complex topics like investment strategies, risk management, and portfolio diversification. Limited familiarity with digital financial tools and services also places them at a disadvantage.
Young people in BiH are heavily involved in everyday financial decisions and prefer paying in cash rather than by card, believing it is safer. They also do not regularly monitor or analyse their spending.
When it comes to saving, keeping cash at home or in a wallet is the most common method, used by 71.05% of respondents. 33.66% of young people deposit money into a savings or other bank account. These figures point to the need for programmes that highlight the importance of long-term saving and how it can benefit their future.
“I don’t feel good when I don’t have any money. I need to have at least 20–30 BAM somewhere under my pillow. I usually put it in the pillowcase,” said one focus group participant.
The current financial situation also limits young people’s ability to do the things that matter to them, highlighting the need for support and strategies to help them overcome financial barriers.
More than one-third of respondents said that, in the past 12 months, their income was not enough to cover their living costs, which causes stress and concern. Some manage to just by while others say they simply live day to day and do not think about the future.
Some even turn to lottery tickets as a way of trying to improve their financial situation. Despite the challenges, most young people said they would not keep extra change if a cashier gave them too much, even if it left them at a disadvantage, according to the study.
“I mostly buy unnecessary things, or food. Things that don’t last. I don’t tell anyone because that saves me from getting lectured, but I tell my friend because I know he won’t berate me. I manage my money for three days; on the fourth day, there’s nothing left to manage,” said another focus group participant.
One of the study’s conclusions is that BiH needs educational programs for young people that cover a wide range of financial topics, from the basics to more advanced investment strategies. This includes interactive workshops, simulations, and games that allow young people to apply theoretical knowledge in practice. Such programs would help them learn the practical skills they need to become good at managing their finances.
The full analysis of Financial Literacy of Youth in BiH is available HERE.
