Purpose: The overall aim of this paper is to identify how student’s financial literacy may influence decisions in innovation and entrepreneurship. This article will focus on financial abilities of students and consequences of financial education in context of future business areas. Design/methodology/approach: This paper is theoretical and cognitive. The study reviews existing literature, including reports and scientific researches in area of financial literacy, innovation and entrepreneurship. Literature analysis anticipates economic and social effects of the student’s financial literacy on relevant business processes - innovation and entrepreneurship. Findings: Following the previous studies, this paper confirmed that financial literacy is related to business decision making, especially in area of innovation and entrepreneurship. The study also emphasizes the importance of extensive financial education for students as an impulse for better economic preparation. Social implications: This study provides insights for developing financial program curricula tailored for students that may improve their financial skills and help them face daily challenges as adults. Originality/value: This research has shown that financial literacy is an important aspect in the business area and need to be taken care of already on a student level. Value of financial literacy have also macroeconomic impact, as more innovations and enterprises results in economic growth.
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