Design and Evaluation among Young Adults of a Financial Literacy Scale Focused on Key Financial Decisions

• Main Authors: Chiluiza, K. (Author), Everaert, P. (Author), Prado, S.M.M (Author), Valcke, M. (Author)
• Format: Article
• Language: English
• Published: MDPI 2022
• Subjects: confirmatory factor analysis; Ecuador; financial attitude; financial behavior; financial knowledge; financial literacy; OECD; structural model; university; young adults
• Online Access: View Fulltext in Publisher
• ISBN: 22277102 (ISSN)
• ISSN: 22277102 (ISSN)
• DOI: 10.3390/educsci12070460

The present study underpins the design and validation of a Financial Literacy (FL) scale in the Latin American and the Caribbean (LAC) context. Though scales are available, they do not meet contextual characteristics and seem to miss out on a focus on Key Financial Decisions (KFD). Scale design was consistent with an extensive literature review (2010–2021). Forty-four items scale covering the dimensions of Financial Attitude, Financial Behavior, and Financial Knowledge were presented to 478 young adults aged 18–30, and women 58% of them. The results reflect a robust FL scale by applying Confirmatory Factor Analysis (CFA). The data about young adults’ FL can be used as a benchmark in future studies fostering the development of FL in the Latin American and Caribbean contexts. © 2022 by the authors. Li-censee MDPI, Basel, Switzerland.