Julio Alonso Burga-Morales

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.