Analysis of changes in the financial behaviour of young people during the COVID-19 pandemic in Lithuania

Abstract

The COVID-19 pandemic significantly affected the economic environment and individual financial decision-making, particularly among young people facing educational, employment, and income-related uncertainties. This article aims to determine how the financial behaviour of young people in Lithuania changed before and after the COVID-19 pandemic and to assess how these changes currently influence their financial decisions. The empirical research methodology is based on the analysis of scientific literature, descriptive statistical data analysis, and hypothesis testing using non-parametric methods. Specifically, the Kruskal–Wallis test (non-parametric ANOVA analogue), Cook’s distance test, and the Kolmogorov–Smirnov test were applied. The study also employs questionnaire survey data, with graphical representation of results. Data processing and statistical analysis were conducted using MS Excel and SPSS software. The findings reveal notable shifts in saving, spending, and borrowing behaviour among Lithuanian youth during and after the pandemic period. Although certain positive trends emerged – such as increased attention to savings and financial security – young people continue to demonstrate insufficient knowledge and competencies in financial decision-making, particularly in long-term planning, investment evaluation, and risk assessment. The results suggest that the pandemic acted as a catalyst for behavioural change. These findings highlight the need to adapt the education system to address existing deficiencies, placing greater emphasis in schools and universities on financial decision-making aligned with changing life cycle needs and evolving economic conditions.