Published : 2018-06-29

Financial instability of households from rural regions

Tomasz Potocki



Abstract

The main thesis of the article is “Households from rural regions, especially the low-income ones, when dealing with financial instability, use mainly informal financial resources”. The main thesis was verified by presenting results of own research concerning dealing with unexpected financial shocks among households, especially low-income ones, from rural regions of Poland. The results show that responders use mostly responsible strategies when facing with a small value financial shocks. In case of the bigger financial shocks the most of them are unable to cover the costs. It means that the access to the adequate financial products may have a great impact on the level of their financial potential. Besides that, the important factor in explaining the way people handle with financial shocks is not the level of income but the financial literacy level and selected financial attitudes.

Keywords:

financial shocks, financial stability, financial literacy, poverty, rural regions, household finance



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Potocki, T. (2018). Financial instability of households from rural regions. Safe Bank, 70(1), 95–123. https://doi.org/10.26354/bb.5.1.70.2018

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