Exploring the relationship between financial education and personal finance management in Lima, Peru

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Promoting effective personal finance practices is crucial for individuals’ long-term financial well-being. Financial education equips people with the knowledge and skills to make informed decisions and achieve financial stability. This study investigates the relationship between financial education and personal finance among residents of Lima, Peru, a context characterized by limited financial inclusion and low literacy levels. The research followed a quantitative, cross-sectional, and correlational design. A validated questionnaire was administered to a random sample of 456 individuals aged 18 to 65 during March and April 2024. The survey focused on financial management, use of credit, planned consumption, and investment and savings. Spearman’s rho correlation was employed due to the non-normal distribution of the data. The results revealed a strong positive correlation between overall financial education and personal finances (Rho = 0.726, p < 0.001). Notably, the dimension of investment and savings showed the highest correlation with personal finance (Rho = 0.745), followed by credit use (Rho = 0.642), financial management (Rho = 0.518), and planned consumption (Rho = 0.458). These findings highlight the relevance of financial education in fostering responsible economic behavior and financial stability, particularly in emerging economies. The study underscores the need for comprehensive financial education programs to enhance citizens’ capacity to manage their resources effectively and mitigate risks such as over-indebtedness and lack of savings. Future research should investigate additional socioeconomic variables and the long-term impact of targeted financial education initiatives.

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    • Table 1. Demographic data
    • Table 2. Level of perception of financial education
    • Table 3. Level of perception of personal finances
    • Table 4. Kolmogorov-Smirnov test results for normality
    • Table 5. Contrast between financial education and personal finance
    • Table 6. Contrast between financial management and personal finance
    • Table 7. Contrast between the use of credit and personal finance
    • Table 8. Contrast between planned consumption and personal finance
    • Table 9. Contrast between investment and savings and personal finance
    • Conceptualization
      Julio Alonso Burga-Morales
    • Data curation
      Julio Alonso Burga-Morales, Franklin Cordova-Buiza
    • Investigation
      Julio Alonso Burga-Morales
    • Software
      Julio Alonso Burga-Morales
    • Supervision
      Julio Alonso Burga-Morales
    • Visualization
      Julio Alonso Burga-Morales, Franklin Cordova-Buiza
    • Writing – original draft
      Julio Alonso Burga-Morales, Franklin Cordova-Buiza
    • Writing – review & editing
      Julio Alonso Burga-Morales
    • Methodology
      Franklin Cordova-Buiza
    • Project administration
      Franklin Cordova-Buiza
    • Resources
      Franklin Cordova-Buiza