Financial literacy and its effect on the financial behavior of households in Huancayo, Peru
Abstract
Financial literacy in households includes developing skills and competencies that allow understanding financial terms and guide decision making to achieve the optimization of resources. The objective of this study was to analyze financial literacy and its effect on the financial behavior of household heads in Huancayo, Peru. The reliability of the research instruments was evaluated, obtaining an adequate reliability of the variables, which was higher than 0.90. Also, for data collection, a probabilistic sample of 702 heads of household in Huancayo, Peru was carried out. Subsequently, the confirmatory analysis was carried out, where it was determined that the proposed model fits well with the observed data and from this it was confirmed that there is a significant effect of financial literacy on the financial behavior of households in Huancayo, Peru, mainly represented by households made up of people between 21 and 30 years of age, which represents 43.9%.
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