A Financial Literacy Model for University Students
Financial literacy, understood as the mastery of a set of knowledge, attitudes, and behaviors, has assumed a fundamental role in allowing and enabling people to make responsible decisions as they strive to attain financial well-being. In this context, the objective of this chapter is to build and compare models that assess university students’ financial literacy. To this end, models that integrate financial knowledge, behavior, and attitude are integrated. The models are subsequently estimated, and many comparative tests are performed. For an analysis of the collected data, structural equation modeling (SEM) was employed using two strategies. The findings indicate that, in the model estimation stage, the scales for behavior and attitude have been reduced. Among all of the models estimated, the best adjusted model indicates that financial knowledge and financial attitude have positive impacts on financial behavior. In practical terms, the financial behavior expresses the ability to establish long-term aims and savings aimed at future acquisitions and unexpected spending. This behavior is directly influenced by basic and advanced questions of financial knowledge and also by the importance attributed to attitude by establishing aims, control of spending and financial reserves.
KeywordsFinancial literacy Structural equation modeling Competing models
JEL CodeC91 E51 D9
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