Extending the concept of financial literacy: A step toward a sustainable society


  • Edib Smolo Effat University
  • Emil Knezović International University of Sarajevo
  • Šejma Aydin International University of Sarajevo




This study analyzes financial literacy in Bosnia and Herzegovina by considering three areas: interest, inflation, and diversification, with financial literacy as a multi-dimensional construct consisting of financial knowledge and financial skills. Using a cross-sectional questionnaire-based survey, 638 valid responses were collected from working-age individuals (18-65 years old). Financial knowledge and skills were analyzed through a prism of several demographic factors, including age, education, household income, and gender. Welch's F tests, ANOVA with Brown-Forsythe, LSD post hoc tests, and Welch's t-tests were performed to test the hypotheses. The findings provide evidence of moderate financial literacy. Similarly to previous studies, financial knowledge and skills partially depend on the respondent's age, education, household income, and gender. The study contributes to the current literature by taking a much-needed non-functional approach to examining financial literacy, focusing not only on financial knowledge but also on often neglected financial skills and providing insight into the unique context of Bosnia and Herzegovina.

Author Biographies

Edib Smolo, Effat University

Assistant Professor

Chair of Finance Department at Effat University in Jeddah, Saudi Arabia

Emil Knezović, International University of Sarajevo

Associate Professor

Vice Rector for Academic Activities and Students’ Affairs at International University of Sarajevo




How to Cite

E. Smolo, E. Knezović, and Šejma Aydin, “Extending the concept of financial literacy: A step toward a sustainable society”, Heritage and Sustainable Development, vol. 5, no. 1, pp. 65–76, May 2023.