Improving financial literacy of a selected group in favour of eliminating crime

Keywords: financial literacy, marginalized Roma community, poverty, crime, elimination of crime

Abstract

The aim of this paper is to point out the connections and the relation between financial literacy, poverty and criminal activities in the context of marginalized Roma communities in Slovakia. The target group was selected on the basis of the negative statistics as presented below. Poverty is one of the issues contributing not only to antisocial behavior of Roma communities but also leading them to criminal activities. In the case of the Slovak Roma, 87% of them live in poverty. The marginalized Roma communities are often linked to the so-called petty crime, which is represented by thefts in stores, in groceries, in public means of transport, in the streets etc.

The research carried out using the problem analysis method was aimed at the initial structuring of the research field and theoretical and conceptual preparation of tools for detailed exploration. The study also contains an analysis of the financial literacy of the marginalized Roma communities in Slovakia.

The survey results of the analysis indicate that the community is lagging behind in the area of the financial literacy and education itself. Only a small percentage of the Roma have completed education that is higher than elementary education. There are about 75% of unemployed Roma that receive material need benefits. Since they are unemployed, they cannot take out a loan in a bank. Therefore, another form of crime is the so-called usury, i.e. loaning money directly in a community and with an extremely high interest rate.

There are two areas in the fight against crime caused by low financial literacy that may be regarded as key areas, namely decreasing the level of poverty of the marginalized Roma communities and financial education.

The article problematizes the hitherto unknown contexts of connections and the relation between financial literacy, poverty and criminal activities in the context of marginalized Roma communities in Slovakia and original survey focused on analysis of the financial literacy of the marginalized Roma communities in Slovakia.

Author Biographies

Jozefína Drotárová, University of Security Management in Košice

PhD., Ing., MBA, MPH, Vice-Rector for Science and Research

Andzej Misiuk , University of Security Management in Košice

Doctor of Science, Professor

Zuzana Gedeonová, University of Security Management in Košice

PhD, Ing., student

References

Azmi Abdullah, M., Chong, R.2014 Financial Literacy: An Exploratory Review of the Literature and Future Research, Journal of Emerging Economies and Islamic Research, 2014, Vol. 2, No. Available from: http://www.jeeir.com/v2/images/Vol2No32014/129-284-1-PB.pdf.

Balabán, Z. (2011). Šlabikár finanční gramotnosti: učebnice základních 7 modulu finanční gramotnosti. 2. aktualiz. Praha: Cofet. 416 s.

Bjerk, D. Thieves, thugs, and neighborhood poverty, Journal of Urban Economics Volume 68, Issue 3, November 2010, Pages 231-246 Available on: https://doi.org/10.1016/j.jue.2010.06.002.

Buck, A. And Hakim, S. (1991), "Are Property Values Being Adversely Affected by Crime?", Journal of Property Valuation and Investment, Vol. 9 No. 1, pp. 37-44. https://doi.org/10.1108/ EUM0000000003296.

Elliott, C., Ellingworth, D. (1996), "The relationship between unemployment and crime: A cross‐sectional analysis employing the British Crime Survey 1992", International Journal of Manpower, Vol. 17 No. 6/7, pp. 81-88. https://doi.org/10.1108/0143772961014935.

Font, S.A.-Jack, K.M. (2020), It’s not “Just poverty”: Educational, social, and economic functioning among young adults exposed to childhood neglect, abuse, and poverty, Child Abuse & Neglect, Volume 101, March 2020, 104356 Available on: https://doi.org/10.1016/j.chiabu.2020.10435.

Halilovica, S. Zaimovicb, A. Berilob, A.A. Zaimovic, T. (2019), Financial Literacy Assessment in Bosnia and Herzegovina, 3rd World Conference on Technology, Innovation and Entrepreneurship (WOCTINE) Procedia Computer Science 158 (2019) 836–843 10.1016/j.procs.2019.09.121. Available from:
https://reader.elsevier.com/reader/sd/pii/S1877050919312918?token=3B66F969E642BEAC5BE157E7FFB2F9333BA691C3ED754610C865F91309C89879C94F3355864E6AD6ED14AD8A93BC4F5F

Hieu T.M. Nguyen (2019), Do more educated neighborhoods experience less property crime? Evidence from Indonesia, International Journal of Educational Development, Volume 64, January 2019, Pages 27-37 Available on https://doi.org/10.1016/j.ijedudev.2018.12.005

Howmuch (2018), Visualizing Financial Literacy Rates Around the World. Available on: https://howmuch.net/articles/ financial-literacy-around-the-world

Hoyt, E. (20. 5 2018). The 5 Key Components of Financial Literacy. Available from: https://www.fastweb.com/student-life/articles/the-5- key-components-of-financial-literacy

Johnson, E., Sherraden, M.S. (2007), "From Financial Literacy to Financial Capability Among Youth," The Journal of Sociology & Social Welfare: Vol. 34: Iss. 3, Article 7. Available from: https://scholarworks.wmich. edu/jssw/vol34/iss3/7

Kantnerová, L., & Et Al. (2013), Finanční gramotnost v České, Polské a Slovenské republice. České Budéjovice: Jihočeská univerzita. 171 s. ISBN 978-80-7394-436-0.

Kelton, W. (2020), What Is Financial Literacy? Available from: https://www.investopedia.com/ terms/f/financial-literacy.asp

Lubelcová, G.: Sociálna podmienenosť regionálnej diferencovanosti kriminality na Slovensku. Sociológia: 1996, č. 28 s. 575-586, Slovaki

Meloni, O. (2014), Does poverty relief spending reduce crime? Evidence from Argentina, International Review of Law and Economics Volume 39, August 2014, p.28-38 Elsevier, https://doi.org/10.1016/j.irle.2014.05.002

Remund, D. L. (2010), Financial literacy explicated: The case for a clearer definition in an increasingly complex economy. Journal of consumer affairs, 44(2), 276-295, https://doi.org/10.1111/j.1745-6606.2010.01169.

Říčan, P. (1998), S Romy žít budeme – jde o to jak: déjiny, současná situace, koreny problémú, nadéje společné budoucnosti. Praha: Portál. ISBN: 80-7178-250.

Stango, V., Zinman, J. (2009), Exponential growth bias and household finance. The Journal of Finance, 64(6), 2807-2849 Available from: https://onlinelibrary.wiley.com/doi/abs/10.1111/j.1540-6261.2009.01518.x

Škreblin Kirbiš, I., Tomić, I., Vehovec, M. (2011.), Retirement literacy and savings for the third life age. Revija za socijalnu politiku, 18(2): 127-148. Croatia doi.org/10.3935/rsp.v18i2.1004 Available from: https://hrcak.srce.hr/index. php?id_clanak_jezik=105676&show=clanak

Škvára, M. (2011), Finanční gramotnost. Praha: M. Škvára, 211s. ISBN: 978-80-904823-0-2. Available from: http://www.nsrr.sk/sk/ horizontalne-priority/marginalizovane-romske-komunity/

Tomčíková, T. (2011), Vzťah kriminality a chudoby. In. Rizikové súvislosti chudoby a rodiny v súčasnej slovenskej spoločnosti P.155-161, Slovakia, Available from: https://www.prohuman.sk/files/zilova_rizikove_suvislosti_chudoby.pdf

Zamana, K.-Usman, B.-Sheik, S., M.-Iswand- Khane, A.- Kosnine, A.B.M.- Rosmane, A.S.B. Ismaile, S.- Alie, F.D.- Hishanf, S.S. (2019) Managing crime through quality education: A model of justice, Science & Justice Journal Volume 59, Issue 6, Pages 597-605, https://doi.org/10.1016/j.scijus.2019.08.00.

Abstract views: 176
PDF Downloads: 117
Published
2021-09-29
How to Cite
Drotárová, J., Misiuk , A., & Gedeonová, Z. (2021). Improving financial literacy of a selected group in favour of eliminating crime . VUZF Review, 6(3), 20-29. https://doi.org/10.38188/2534-9228.21.3.03
Section
Articles