Modelling of the Financial Risk Attitude System of Young Russians

The paper presents the author’s approach to the modelling the system of the prospective risk-taking behavior of Russian students’ youth based on their preferences regarding the types of savings. The research is based on empirical data obtained through a survey of students of the largest universities in the south of Russia according to the questionnaire developed by the authors. Young people entering the labor market in the near future will be the most financially active part of the population. The study involves a joint analysis of the features that form different types of students’ financial behavior according to the risk level of investments chosen. We model the risk attitude system using the multinomial logit model, with socio-economic and demographic characteristics of students and their families along with students’ financial literacy as determinants. Our risk attitude system model shows that more likely to demonstrate a higher risk appetite are: students from wealthy families, young men enrolled in humanitarian and public programs, and respondents living with their families. Also we revealed that most students tend to choose low-risk investment options.