A recent research study conducted by Brazilian researchers shows evidence that those variables impact at an individual’s financial literacy levels more than expected.
The study was conducted in the region of Rio Grande do Sul, Brazil, including a sample of 1.400 individuals, focusing in three key indicators (financial attitude, financial behaviour, and financial knowledge) and a set of Socioeconomic and Demographic Variables such as gender, marital status, dependent family members, occupation, age, educational level, father's educational level, mother's educational level, individual income, and family income.
The results show that there is a strong relationship between the socioeconomic and demographic variables and financial literacy. Analysing them we can conclude that generally, individuals aged 30 to 40 years old have higher financial literacy levels and that women possess lower levels of financial literacy than men (especially single women) and that Men's financial literacy is increasing faster than that of women. However, it is also noticed that married individuals with more than two children are also in the group more vulnerable. Considering the parameters of professional occupation and the educational level attained, unemployed individuals, show less desirable attitudes and behaviours towards financial literacy, while those with higher educational levels are those with higher financial literacy levels. Details of the findings of the study are presented below:
|Variables||Relation to financial literacy|
Singles are significantly more prone to have lower financial literacy levels than married individuals.
|Having dependent family members||
Individuals with longer labour experience have higher financial literacy because of greater familiarity with economic and financial subjects, while unskilled or unemployed workers show less desirable attitudes and behaviours.
|Parental educational level||
Low-income levels are associated with low financial literacy levels.
The findings of the study point out the need for implementing effective actions to minimize the lack of financial illiteracy. Euroinvestment project is contributing to respond to this need by providing a set of flexible educational games, addressing adults. The games will enable adults educators, trainers and counsellors of using them in non-formal and formal learning contexts to improve adults financial literacy awareness and knowledge. At the same time, adults will be able to learn through the games autonomously as independent users as well.