Financial Literacy of Young People in the AI Era: Evidence from Rural Areas of the Veliko Tarnovo Region, Bulgaria

Financial literacy is increasingly recognized as an essential skill for effective participation in the modern economy and society. The scientific literature conceptualizes financial literacy as a multidimensional concept and highlights persistently low levels among youth and vulnerable groups, alongside growing attention to digitalization. Against this background, the paper focuses on the financial literacy of young people in rural municipalities in Bulgaria, with a particular emphasis on the Veliko Tarnovo region. The aim of the study is to assess the level of financial literacy, examine its correlation with the socio-economic development of municipalities, and make policy recommendations. The survey measures the three core components of financial literacy using indicators consistent with the OECD and PISA framework and includes additional sections concerning euro adoption and artificial intelligence.

The study contributes empirically to the understanding of financial literacy in rural areas by analysing the interaction between financial knowledge, digital habits, attitudes toward artificial intelligence, and actual financial behaviour. The results show that the main challenge to young people’s financial literacy is not a lack of access to technology, but insufficient integration between knowledge, attitudes, and behaviour. A significant methodological contribution is the development and application of a Normalized Financial Literacy index, which allows for a summarized and comparable assessment of the level of financial literacy at the municipal level. Correlation analysis reveals a weak and unstable relationship between the socio-economic development of municipalities and financial literacy, suggesting that institutional and micro-level factors play a more important role in shaping financial literacy. The results highlight the need for an integrated, school-based approach to financial literacy that combines practical learning, teacher capacity building, the use of digital tools and territorially targeted interventions.