Assessing the Financial Literacy Level of Prisoners and its Impact on Crime Recidivism Rates and Return to Prison

Success in the reintegration of prisoners into society is dependent on various factors, and recent research in this field has explored different aspects. One overlooked dimension, until now, by criminologists is financial literacy and its relationship with crime recidivism rates and return to prison. The primary hypothesis of this research is that financial literacy, as a crucial economic concept, is inversely related to the rate of crime recidivism. Individuals with better financial literacy are capable of managing wealth effectively and improving their economic status, potentially reducing the likelihood of committing crimes, especially those related to economic needs. Analysis of variance and Pearson correlation coefficient were employed to examine the main and sub-hypotheses. The research utilized the Shapiro-Wilk test on a community sample, and all stages were executed using SPSS24 software. The findings indicate a positive and significant relationship between examined variables, including education level, age, marital status, and financial literacy. Furthermore, the results demonstrate an inverse relationship between financial literacy and the rate of crime recidivism and return to prison. The study also reveals that criminals involved in fraud have higher levels of financial literacy compared to thieves. It appears that providing financial and economic literacy education alongside vocational skills training constitutes a significant portion of effective rehabilitation programs. This education equips prisoners with the necessary skills for managing limited financial resources and prevents them from falling into immediate hardships upon release.