González-Núñez, José; Ma iné-Oso io, Fe nando José; Domínguez, Salomón
A icle
Financial li e acy is a cons uc : an o de ed logi
app oxima ion in Mexico
Cogen Economics & Finance
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Sugges ed Ci a ion: González-Núñez, José; Ma iné-Oso io, Fe nando José; Domínguez, Salomón
(2024) : Financial li e acy is a cons uc : an o de ed logi app oxima ion in Mexico, Cogen
Economics & Finance, ISSN 2332-2039, Taylo & F ancis, Abingdon, Vol. 12, Iss. 1, pp. 1-15,
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Financial li e acy is a cons uc : an o de ed logi
app oxima ion in Mexico
José González-Núñez, Fe nando José Ma iné-Oso io & Salomón Domínguez
To ci e his a icle: José González-Núñez, Fe nando José Ma iné-Oso io & Salomón Domínguez
(2024) Financial li e acy is a cons uc : an o de ed logi app oxima ion in Mexico, Cogen
Economics & Finance, 12:1, 2391941, DOI: 10.1080/23322039.2024.2391941
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FINANCIAL ECONOMICS | RESEARCH ARTICLE
Financial li e acy is a cons uc : an o de ed logi app oxima ion in
Mexico
Jos
e Gonz
alez-N
u~
nez
a
, Fe nando Jos
e Ma in
e-Oso io
b
and Salom
on Dom
ınguez
a
a
Facul ad de Econom
ıa y Negocios, Uni e sidad An
ahuac M
exico, Ciudad de M
exico, M
exico;
b
Facul ad de Ciencias
Ac ua iales, Uni e sidad An
ahuac M
exico, Ciudad de M
exico, M
exico
ABSTRACT
This esea ch aims o iden i y he ac o s explaining he le el o inancial li e acy, di -
ided in o h ee le els, low, medium and high, o he Mexican popula ion o e he age
o 18. This s udy ills a gap in mic oeconomic s udies, which essen ially lack an ana-
lysis o inancial li e acy and he s udy o inancial li e acy as a cons uc de ined by
he ENIF 2021 and by he O ganiza ion o Economic Coope a ion and De elopmen ,
in which inancial li e acy is measu ed by h ee componen s, inancial knowledge,
beha iou and a i udes; a ele an empi ical assump ion o his me hodology is ha
he a iable does no i a s anda d no mal dis ibu ion. Due o he na u e o he
dependen a iable, an O de ed Logis ic Model is used, aking in o accoun independ-
en a iables wi h economic, socio-beha iou al and ins i u ional cha ac e is ics. The
numbe o obse a ions used was 13,570, in which he sample has a p obabilis ic,
h ee-s age, s a i ied, clus e ed design; he sample ep esen s 90.3 million people
o e he age o 18. The esul s show ha he main explana o y ac o s o inancial li -
e acy a e income le el, mobile phone enu e, gende , age and own size. Young people
(aged 18-35) a e mo e likely o be inancially li e a e han people o e 65, who a e
less inancially li e a e. Females a e also mo e likely o be inancially li e a e han
males. In e ms o ins i u ional ocus, u ban dwelle s a e mo e likely o be inancially
li e a e han hose in u al a eas. This pape p o ides policymake s wi h a aluable
oppo uni y o unde s and Mexican socie y be e and imp o e inancial decision-mak-
ing, money managemen and posi i e u u e beha iou s.
IMPACT STATEMENT
This s udy employs he ENIF 2021 o analyse inancial li e acy as a cons uc comp is-
ing inancial knowledge, beha iou and a i ude. Fu he mo e, i iden i ies he a ia-
bles ha de e mine his cons uc , including income le el, mobile phone owne ship,
gende , age and ci y size. Gi en he cha ac e is ics o his cons uc , he analysis is
conduc ed using an o dinal logi model.
ARTICLE HISTORY
Recei ed 14 Ma ch 2024
Re ised 15 July 2024
Accep ed 6 Augus 2024
KEYWORDS
Beha iou al inance;
inancial li e acy; o de ed
logis ic model; inancial
inclusion; socio-beha iou al
SUBJECTS
La in Ame ican & Hispanic
S udies; Economics; Finance
JEL CLASSIFICATION
G40; G53; C59; G10
In oduc ion
Why is inancial li e acy impo an ? e idence sugges s ha inancial li e acy p omo es he indi idual
well-being o he popula ion, he de elopmen o socie y and he economy, and g ea e inancial inclu-
sion (Adam e al., 2017; Hasan e al., 2021; Mo gan & Long, 2020; Xiao & Po o, 2017). Financial educa-
ion has been p o en o be a powe ul ool, empowe ing indi iduals o make be e decisions, alloca e
hei income mo e e ec i ely, and manage hei c edi o a oid o e -indeb edness and enable sa ings.
Financial co ec beha iou leads o highe le els o inancial li e acy, enhancing indi idual well-being,
socie al de elopmen , and economic g ow h. I would seem p uden , he e o e, o he go e nmen and
policymake s o conside ways o encou aging inancial li e acy. I would be bene icial o conside he
po en ial ad an ages o encou aging inancial li e acy.
CONTACT Salom
on Dom
ınguez [email p o ec ed] Facul ad de Econom
ıa y Negocios, Uni e sidad An
ahuac M
exico,
Ciudad de M
exico, M
exico
ß2024 The Au ho (s). Published by In o ma UK Limi ed, ading as Taylo & F ancis G oup
This is an Open Access a icle dis ibu ed unde he e ms o he C ea i e Commons A ibu ion License (h p://c ea i ecommons.o g/licenses/by/4.0/), which
pe mi s un es ic ed use, dis ibu ion, and ep oduc ion in any medium, p o ided he o iginal wo k is p ope ly ci ed. The e ms on which his a icle has been
published allow he pos ing o he Accep ed Manusc ip in a eposi o y by he au ho (s) o wi h hei consen .
COGENT ECONOMICS & FINANCE
2024, VOL. 12, NO. 1, 2391941
h ps://doi.o g/10.1080/23322039.2024.2391941
The posi i e impac o inancial li e acy ex ends u he , inc easing inancial inclusion and aiding in
educing po e y and inequali y wi hin he popula ion. These indings inspi e hope and op imism abou
he po en ial o posi i e change h ough inancial educa ion (Hasan e al., 2021; Swiecka e al., 2020;
Xiao & Po o, 2017). In many coun ies and economies, i has become a long- e m policy and is ecog-
nised as an essen ial complemen o ma ke conduc , p uden ial egula ion, and inancial inclusion.
In May 2020, mo e han 70 coun ies and economies designed o implemen ed na ional inancial edu-
ca ion s a egies (O ganiza ion o Economic Coope a ion and De elopmen [OECD], 2022). The g owing
complexi y o he inancial sys em equi es policy de elopmen aimed a imp o ing knowledge o inan-
cial p oduc s and hei associa ed isks, as well as p omo ing he inancial li e acy o consume s o make
in o med decisions ha gene a e weal h and well-being wi hin a legal amewo k o use p o ec ion
(Hsu, 2022; Lusa di & Mi chell, 2017; OECD, 2022).
Speci ically in Mexico, he inancial sys em is s ongly lagging as only 31% o he adul popula ion has
c edi in a inancial ins i u ion o depa men s o e, 47% has an accoun in he inancial sys em, and only
17% has a sa ings accoun (La igue Mendoza e al., 2020). Howe e , ecen inancial li e acy su eys by he
OECD and na ional agencies, such as he Na ional Banking and Secu i ies Commission (CNBV), in Mexico
2021 demons a e ha se e al people, pa icula ly ulne able g oups such as women wi h lowe le els o
educa ion and indi iduals wi h low incomes, lack basic inancial knowledge and a e ill-p epa ed o make
be e inancial decisions (CNBV, 2019; CNBV & INEGI, 2018; Ga c
ıa Ma a e al., 2021).
Financial li e acy is essen ial o make be e decisions o a oid inancial p oblems, be e manage
income, and gain g ea e secu i y o achie e long- e m goals (Beckmann, 2013; E g€
un, 2018; Hsu, 2022).
This e m implies unde s anding he ele ance o cu en and u u e sa ings, c edi managemen , and
g ea e pa icipa ion o he popula ion in inancial sec o p oduc s, implying g ea e inancial inclusion
(An onio-Ande son e al., 2020; G ohmann e al., 2018; Mo gan & Long, 2020).
Low inancial li e acy can lead o unsecu ed pe sonal loans (Wang e al., 2021), ha dship, possibly
bank up cy (Adam e al., 2017; Bou o a e al., 2018; Lusa di e al., 2021), po en ial bank up cy, o e -
indeb edness, inadequa e planning o e i emen , suscep ibili y o scams, and ailu e o gain om inno-
a ions in inancial p oduc s, such as mobile money and Co esponsalias banca ias (CB)
1
, and o he
accessible inancial se ices. This si ua ion is especially p e alen among low-income indi iduals in u al
a eas o de eloping coun ies (An onio-Ande son e al., 2020; Ga c
ıa Ma a e al., 2021; Van Nguyen e al.,
2022; Wagne , 2019).
The In e na ional Ne wo k o Financial Educa ion (INFE) o e s a de ini ion o inancial li e acy ha encom-
passes a ange o elemen s, including awa eness, knowledge, skills, and beha iou s. These a e seen as con i-
bu ing o he abili y o make in o med inancial decisions and, ul ima ely, o achie e inancial well-being. The
OECD has aken a s ep owa ds aligning wi h he INFE concep by a emp ing o inco po a e h ee addi ional
dimensions o inancial li e acy, which is o en con la ed wi h inancial knowledge alone. In ligh o hese con-
side a ions, he OECD has de eloped a ee-componen index ha inco po a es inancial knowledge, inancial
beha iou s, and inancial a i udes. This index is p esen ed in Appendix A and includes a se ies o ques ions
designed o elici in o ma ion on hese h ee key a eas.
In 2019, Mexico’s inancial li e acy sco e o 58.2 placed i below he G20 a e age o 60.5. In examining
he speci ic componen s, i is no able ha Mexico pe o ms well in he a ea o inancial knowledge, wi h
a sco e o 65.8 compa ed o he G20 a e age o 61.4. Howe e , he e is oom o imp o emen in he
a ea o inancial beha iou , whe e Mexico sco ed a 48.2 e alua ion compa ed o he G20 a e age o 60.
Simila ly, he e is an oppo uni y o enhance inancial a i udes, wi h Mexico sco ing 65 compa ed o he
G20 a e age o 60 (Del-R
ıo-Chi a di e al., 2019). In he la es 2021 e sion, he OECD has inco po a ed
new ques ions on bo h inancial a i ude and inancial beha iou .
I would be bene icial o ha e a eliable measu emen o li e acy. This is because i encompasses h ee
dis inc dimensions, and esul s may a y when compa ed ac oss di e en a eas. Addi ionally, including
mo e ques ions could help o mo e accu a ely assess each componen o he cons uc unde s udy.
The i s con ibu ion o li e a u e is in adding hese new ques ions o he cons uc o ma ion o he
dependen a iable called he ‘ inancial li e acy cons uc ’, and using an o de ed logis ic model gi en
he lack o no mali y o he dependen a iable. The e o e, he OECD inancial li e acy cons uc and
me hodology a e being added o, looking o wa d o a be e unde s anding o he Mexican popula ion
wi h he la es and imp o ed ENIF (CNBV & INEGI, 2021).
2 J. GONZÁLEZ-NÚÑEZ ET AL.
The second con ibu ion is o iden i y he ac o s ha may in luence he le el o inancial li e acy
among Mexican adul s o e he age o 18. This will be done by examining he ques ions om he ENIF
2021 su ey. I is wo h no ing ha he younge Mexican popula ion appea s o be in a medium- o-
highe s a um ega ding inancial li e acy. Addi ionally, women seem o be mo e likely o be in his
medium- o-highe le el, despi e he p e ailing desc ip i e s a is ics and social gende inequali y ha
place hem below men. I may be obse ed ha indi iduals who ha e access o mobile phones a e
mo e likely o ha e a highe le el o inancial li e acy.
This pape is di ided in o ou pa s: he i s co esponds o a li e a u e e iew, which allows knowledge
o he a iables de e mining inancial li e acy; he second pa co esponds o he modelling, which
explains how he inancial li e acy cons uc is de eloped based on he OECD (2018) ecommenda ions and
why he OLM is used wi h he co esponding alida ion; he hi d pa p esen s he esul s and discussion,
and he las co esponds o he conclusions.
Li e a u e e iew
Financial li e acy has been gaining ele ance nowadays, as inancial p oduc s and se ices a e becoming
complex due o he emendous a ie y in he ma ke and he inhe en isks in some p oduc s. Thei
cha ac e is ics and equi emen s o mee he popula ion’s di e se needs equi e a minimum le el o
inancial li e acy so ha people can choose be e when sa ing, spending, bo owing, and accumula ing
weal h (Bonilla e al., 2022). No o men ion ha he cons an e olu ion o echnology has digi alised
inancial se ices and he abili y o conduc inancial ansac ions om mobile de ices, such as mobile
phones (Beck e al., 2018; Ra ikuma e al., 2022; Ren e al., 2018).
Financial educa ion enables people o make be e inancial decisions. I p o ides he necessa y ele-
men s o ollow basic concep s such as sa ings, in es men , deb , and e i emen plans be e , among
o he s. I also helps people be e unde s and he economic and inancial issues a ec ing hei economy
and a oid making ash decisions, succumbing o possible scams, o alling in o o e -indeb edness
(G ohmann, 2018; G ohmann e al., 2018; Lusa di e al., 2021; Lusa di & Mi chell, 2017).
People wi h highe inancial li e acy can comp ehend he implemen ed economic and social policies,
which can be posi i ely associa ed wi h hei inancial well-being and, he e o e, de elop he inancial sys-
em (Adam e al., 2017; Ga c
ıa e al., 2013; Hasibuan e al., 2018; Xiao & Po o, 2017; Yap e al., 2018; Younas
e al., 2019). S udies ha e been pe o med o iden i y he a iables ha a ec he so-called inancial li e acy,
some o which a e sociodemog aphic a iables such as educa ional le el, gende , ma i al s a us, age, ype
o locali y, and o he s o an economic na u e: income, income a iabili y, elephone, indeb edness, cell
phone owne ship, access o inancial se ices, among o he s (An onio-Ande son e al., 2020; Ga c
ıa Ma a
e al., 2021; Kadoya & Khan, 2020; Ka aku um-Ozdemi e al., 2019; Lo o, 2020).
Conce ning sociodemog aphic a iables, some s udies ha e iden i ied gende gaps a ou ing men, ie
because in Mexico, cul u ally speaking, women ha e ewe oppo uni ies as Mexican socie y is mo e
masculine in social and cul u al dimensions (Ho s ede, 2016). Fo example, in educa ion and jobs o e s
ha help women p o essionally, he e is a subs an ial di e ence be ween women and men, who also
ha e a highe le el o inancial li e acy han women do (Adam, 2017; An onio-Ande son e al., 2020;
Buche -Koenen e al., 2017; Cup
ak e al., 2018; Ga c
ıa Ma a e al., 2021; Kadoya & Khan, 2020). Howe e ,
only a ew s udies, (Adam, 2017; Beckmann, 2013) ha e ound highe a es o inancial li e acy in women
han in men o no di e ence be ween he wo.
Rega ding age, se e al s udies con i m ha he lowes le els o inancial li e acy a e ound among
he younges and he oldes . As people age, hey acqui e skills and expe ience in he di e en inancial
decisions hey ace (An onio-Ande son e al., 2020; Ga g & Singh, 2018; Kadoya & Khan, 2020;
Ka aku um-Ozdemi e al., 2019; Klappe & Panos, 2011; Lusa di & Mi chell, 2014). S udies conduc ed in
he Uni ed S a es ocused on people o e 60yea s old men ion a nega i e ela ionship be ween age
and inancial li e acy (Finke e al., 2017).
Simila ly, some au ho s (Boisclai e al., 2017; Ebe ha d e al., 2019; Ra ikuma e al., 2022) also claim
ha expe ien ial knowledge imp o es decision-making among adul s. Some (Ansa i e al., 2023; Li e al.,
2013; Lusa di, 2019) a gue ha olde age is associa ed wi h g ea e inancial li e acy. Addi ionally,
COGENT ECONOMICS & FINANCE 3
inancial p io i ies a e changing, and youngs e s ocus on es ablishing hemsel es p o essionally and
inancially, while olde people begin o ocus on e i emen plans (Ebe ha d e al., 2019).
The cons an e olu ion o he inancial sys em and he endency o adop new echnology means
ha you h a e mo e amilia wi h accessing in o ma ion and consul ing new inancial ools (Choud ie
e al., 2018;J
€
unge & Mie zne , 2020; Va ga, 2017). I is o his eason ha public policies a e aken o
Sil e Finance, o p o ide suppo o adul s o acili a e he use o new echnology o de ices ha could
po en ially help hem o imp o e hei in e ela ionship wi h i , olde people a e mo e esilien o
change and ha e a g ea e a e sion o adop ing new echnology, which a ec s hei inancial li e acy
(Lusa di, 2019).
The educa ional le el plays a c ucial ole in inancial li e acy, as people wi h highe le els o educa-
ion end o ha e be e analy ical and c i ical hinking skills and a be e unde s anding o basic inan-
cial concep s. They can build a mo e solid inancial knowledge wi h less e o . People wi h highe le els
o educa ion ha e highe le els o inancial li e acy (Ansa i e al., 2023; An onio-Ande son e al., 2020;
Bou o a e al., 2018; Ga c
ıa Ma a e al., 2021; Kadoya & Khan, 2020; Ka aku um-Ozdemi e al., 2019). I
has been es ablished ha hese people can be e unde s and basic economic concep s and make be e
decisions. Financial cou ses a e also o en augh a some uni e si ies (E g€
un, 2018; Lusa di, 2019; Xiao &
Po o, 2017) which p ecisely inc eases he inancial knowledge ha is pa o he inancial li e acy
cons uc .
Conside ing o he ac o s in addi ion o hose men ioned, low-income people a e less inancially li e -
a e (Ansa i e al., 2023; Ga c
ıa Ma a e al., 2021; Kadoya & Khan, 2020; Lo o, 2020; Van Nguyen e al.,
2022), as hey ha e less access o se ices ha could help hem inc ease hei inancial knowledge, such
as he In e ne , books, and inancial cou ses. Addi ionally, because hey ha e low incomes, hey do no
ha e he oppo uni y o gain inancial managemen expe ience as hey a e ocused on sa is ying hei
basic needs and economic dependen s, I would seem ha his is a common issue in de eloping coun-
ies such as Mexico, whe e he e is no enough income o in es , sa e, o make long- e m pension deci-
sions. The s ess o mee ing hei basic needs leads hem o make impulsi e and p esump i e decisions,
a he han in o med and planned ones. Low-income people a e mo e likely o lack access o inancial
se ices such as a sa ings accoun a a inancial ins i u ion o e i emen o sa ings (Kuma Vaid e al.,
2020; Mauldin e al., 2016; Mush aq & B uneau, 2019; Ozili, 2021).
Simila ly, a pe son’s ma i al s a us a ec s hei inancial li e acy. Fo hose li ing wi h a pa ne , sha -
ing household inancial esponsibili ies means ha he s ess o mee ing basic needs is educed o each
pa ne , posi i ely in luencing he way economic decisions a e made in he household as decisions can
be in o med and planned (An onio-Ande son e al., 2020; Buche -Koenen e al., 2017; Finke e al., 2017;
Ga c
ıa Ma a e al., 2021). Ano he way in which he inancial li e acy o a cohabi an is a ec ed is by del-
ega ing income managemen o one pe son, ie inancial decisions a e made by one pe son a he han
a couple, a ec ing he inancial li e acy o he non-income ea ne and, a bes , bene i ing he inancial
li e acy o he income ea ne , ha is way cloud be no signi ica i e (Ansa i e al., 2023; Kadoya & Khan,
2020).
Nowadays, banking ope a ions such as ans e s, pu chases, paymen s, and in es men s on mobile
phones a e widesp ead, and in Mexico, CB o di e se pu poses is a ele an inancial in as uc u e; ena-
bling inancial ansac ions o be ca ied ou by people in complex a eas whe e he e is insu icien in a-
s uc u e o help de elop inancial li e acy. Wi hou income managemen , inancially illi e a e people
wi h mobile phones could easily su e om inancial aud indeb edness and ha e p oblems mee ing
hei basic needs (Goyal & Kuma , 2021). Mobile phone use s a e likely o be mo e li e a e (E ans, 2018;
F ench e al., 2020; Van Nguyen e al., 2022).
Finally, people li ing in u al a eas ha e ewe educa ional esou ces, including inancial educa ion
cou ses, and ewe oppo uni ies o access inancial se ices ha would help hem inc ease hei expe i-
ence and skills o manage income (Azeez & Akh a , 2021; Beckmann, 2013; Ren e al., 2018; Van Nguyen
e al., 2022). In his si ua ion, access o echnology such as mobile phones and CB is an excellen al e na-
i e o ob aining inancial se ices, and some cou ses a e o e ed on digi al pla o ms. This aining
would allow hem o de elop inancial skills (Van Nguyen e al., 2022). Howe e , limi a ions such as he
lack o high-speed In e ne a ec he inancial de elopmen o people in hese loca ions (Ren e al.,
2018).
4 J. GONZÁLEZ-NÚÑEZ ET AL.
The esea ch Hypo hesis s a es:
H1: Income le el, mobile phone enu e, gende , age, and own size a e s a is ically signi ican , explaining he
le el o inancial li e acy measu ed as a cons uc .
H2: The dis ibu ion o he dependen a iable is no no mal, OLM is app op ia e o modelling he inancial
li e acy cons uc o igina ed wi h inancial knowledge, beha iou and, a i ude.
Modelling: he o dinal logis ic model
Da a
The Na ional Financial Inclusion Su ey (ENIF, 2021) is Conduc ed by he Na ional Ins i u e o S a is ics
and Geog aphy (INEGI) o Mexico which is he ins i u ion in cha ge o he na ional censuses and ep e-
sen a i e su eys a a na ional le el. In 2012, INEGI had he p i ilege o ca ying ou he collec ion o
in o ma ion om he i s Na ional Financial Inclusion Su ey (ENIF). The CNBV (Na ional Bank Value
Commission) was kind enough o ake on he impo an ask o analysing and dissemina ing he in o -
ma ion. Subsequen ly, a second and hi d su eys we e published in 2015 and 2018, espec i ely, o
moni o se e al o he indica o s om he ini ial e sion.
The analysis o inancial li e acy in Mexico is based on ENIF 2021, conduc ed by CNBV and INEGI
(2021), which is a ep esen a i e sample o he en i e adul popula ion om 18 o 70 yea s a he
na ional le el, by locali y size (u ban and u al), gende , and egions (CNBV, 2019). June 28 o Augus 13,
2021, was he su ey pe iod. The con idence le el o he sample is 90% (CNBV, 2019). The sample has a
p obabilis ic, h ee-s age, s a i ied, and clus e ed design. A di ec in e iew ( ace- o- ace) wi h an elec-
onic de ice was he da a collec ion me hod. The sample ep esen s 90.3 million people aged 18 and
o e .
Dependen a iable cons uc ion
The dependen a iable called inancial li e acy is a cons uc ob ained by adding h ee p e ious sub-
indices: Financial Knowledge (7 poin s), Financial Beha iou (9 poin s), and Financial A i udes (5 poin s)
pe indi idual and is no malised o he alue o 100 o a be e in e p e a ion, wi h he highes li e acy
occu ing wi h he highes sco es, he maximum being 100, acco ding o he OECD (2018) me hodology.
Annex 1 con ains he ques ions conside ed o elabo a ing on he inancial li e acy cons uc , acco ding
o he me hodology ci ed (OECD, 2018).
On he basis o he sco e ob ained om he li e acy cons uc (an a e age o 56.37), inancial li e acy
was classi ied in o h ee le els: low, medium, and high (see Table 1). Then, a model wi h mul iple ca e-
go ies o dependen a iables was applied in an OLM.
Model
This pape uses he OLM because he dependen a iable is o de ed wi h ca ego ical mul iple esponses.
The dependen a iable ( inancial li e acy) was cons uc ed based on he OECD (2018) me hod. The OLM
is p esen ed as a la en a iable model, which can be ep esen ed as ollows:
y
i¼xibþei(1)
Whe e iis he obse a ion and eiis he andom e o . The model di ides y
iin o o dinal ca ego ies.
Fo example,
Table 1. Mul iple ca ego ical dependen a iable: Financial li e acy.
Financial Li e acy F equency Pe cen age Accumula ed Pe cen age
Low le el 1449 10.68 10.68%
In e media e le el 8748 64.47 75.14%
High le el 3373 24.86 100.00%
To al 13,570 100.00
Sou ce: Own elabo a ion based on da a om ENIF 2021.
COGENT ECONOMICS & FINANCE 5
y
i¼m;sm−1y
i<sm o m ¼1 o J (2)
whe e he cu -o poin is s o sJ−1, wi h mo e han wo classes.
The applied model esponds o he ac ha he alues o he dependen a iable a e no no mally
dis ibu ed and a e missing, gi en ha he alues o he i ems a e on a Like scale and, o acili a e
hei in e p e a ion, a e no malised o he maximum alue o 100, which implies o de alues g ouped
in o h ee ca ego ies.
Applica ion o he OLM
The OLM is es ima ed based on he de ined ca ego ical dependen a iable, see Table 2.
Valida ion
Valida ing is c ucial. So whe he he assump ion o pa allelism o p opo ional a ios is me needs e i i-
ca ion. The e o e, he es o he eg ession’s pa allelism is used, he esul s o which a e p esen ed
below.
Acco ding o Long and F eese (2014), he command opa allel, ic ( e sion 15. S a a) is used, which p o-
ides mul iple es s o check whe he i iola es he assump ion o pa allel lines, see Table 3.
Table 2. Final OLM.
Financial Li e acy Odds Ra io wi h P>jzj
Income: Less han 4,260
4260–6389.9 1.108924 1.59 0.111
6390–8519.9 1.513946 5.41 0.000
8520–12,999.9 2.384524 10.84 0.000
13,000–20,000 4.033988 14.38 0.000
Mo e han 20,000 7.133351 14.64 0.000
Loca ion: Less han 15,000
O e 15,000 1.273786 4.65 0.000
Sex: Male
1.Female 1.419631 7.02 0.000
Mobile phone
Yes 2.58369 13.56 0.000
Age_ ol: O e 65
56–65 1.305761 2.05 0.040
46–55 1.405634 2.75 0.006
36–45 1.853494 5.05 0.000
26–35 2.415644 7.19 0.000
18–25 2.007846 5.42 0.000
/cu 1 −0.779003 0.1135028
/cu 2 3.069613 0.1218432
Sou ce: Own elabo a ion wi h da a om ENIF 2021. V. S a a. 15.
Table 3. P oo o assump ion o pa allelism o eg ession.
Tes s Chi2 d P >Chi2
Wol e Gould 17.13 13 0.193
B an 17.46 13 0.179
Sco e 17.71 13 0.169
Likelihood a io 17.06 13 0.197
Fo es 17.52 13 0.177
Sou ce: Au ho s. S a a V.15, opa allel, ic.
Table 4. Akaike and Bayesian epo ing c i e ia.
In o ma ion c i e ia Model ologi Model Gologi di e ence
AIC (Akaike) 12,687.26 12,696.20 −8.94
BIC (Bayesian) 12,792.53 12,892.72 −100.18
Sou ce: Own elabo a ion. S a a . 15.
6 J. GONZÁLEZ-NÚÑEZ ET AL.
The esul s indica e ha he assump ion o pa allelism is ul illed. Likewise, he logis ic model is
compa ed wi h he gene alized model based on he Akaike in o ma ion and Bayesian c i e ia. The
ologi model is smalle han he gene alized one, p o iding e idence ha i s he da a be e , see
Table 4.
The B an es is also pe o med, which shows he esul s sepa a ed by each o he independen a ia-
bles o he OLM, exp essing he ejec ion o he iola ion o he assump ion o pa allelism, con i ming
he ou come o he p e ious es
2
, see Table 5.
The li e a u e e iew suppo s he independen a iables, explaining why adul s a e g ouped in one
o he h ee ca ego ies indica ed and classi ied by hei economic na u e: income, income a iabili y,
mobile phone owne ship, economic- inancial socio-beha iou (le el o o mal educa ion, gende , age, and
ma i al s a us) and inally ins i u ional, such as he loca ion o he home whe he u ban o u al.
Fi s , eigh independen a iables we e conside ed, and he OLM was un o elimina e he non-signi i-
can a iables, based on he s a is ical signi icance es and Wald es (Long & F eese, 2014). The inde-
penden a iables elimina ed we e ‘income a iabili y,’‘educa ional le el,’and ‘ma i al s a us.’
Acco ding o he li e a u e e iew, hese a iables a e associa ed wi h h ee g oups: he i s wo a i-
ables ela ed o he economic ac o a e income and mobile phone; he second g oup co esponds o
socio-beha iou , which e e s o cha ac e is ics o people a ec ing hei beha iou , such as age and gen-
de ; and he las a iable ela ed o he ins i u ional economy is he size o he locali y, ha is, whe he
in u ban o u al a eas.
Resul s
In Table 6, he majo i y o he popula ion (74.91%) ea ns an income o less han 6389.9 pesos, co e-
sponding o 1.5 minimum sala ies (355 USD
3
); and om 8520 o 12,999.99 pesos (473.34–722.22 USD) a
13.57% o he Mexican popula ion, and in he speci ic case o 13,000–20,000 pesos (722.22–1111.11
USD) a 7.68% o he popula ion, and he las one g ea e han 20,000 (1111.11 USD) jus he 3.84%, as
seen in his able Mexican popula ion has a slow wage compa ed o G20 economies.
In e ms o income a iabili y 55.7% o he popula ion ecei es a a iable income, his is impo an
because he e is a much la ge popula ion ha does no ha e a ixed income no allowing hem o
make he desi ed planning; ep esen ing he job in o mali y p oblema ics o he Mexican popula ion.
In e ms o he le el o s udy, i is no able ha he majo i y o indi iduals ha e comple ed only sec-
onda y educa ion (yea s). In speci ic e ms o Bachelo ’s and Pos g adua e s udies, a smalle p opo ion
o he popula ion has concluded his educa ional s age.
Wi h ega d o he enu e o mobile phones, i is no able ha 27.97% o he popula ion does no
ha e o use a sma phone, while 72% ha e mobile phones. This is also ele an in he con ex o inan-
cial in as uc u e and inancial usage, gi en ha a signi ican po ion o economic se ices a e a ailable
on hese pla o ms.
The da a indica es ha he e is a g ea e emale popula ion han a male one, wi h 54.2% o he adul
popula ion su eyed being emale and 45.8% being male. In li ing a angemen s, i is obse ed ha
Table 5. B an ’s p oo o he eg ession pa allelism assump ion.
Va iable chi2 p >chi2 Fd
All (Global) 17.46 0.179 13
2.ing _ e 1.48 0.223 1
3.ing _ e 1.08 0.298 1
4.ing _ e 0.35 0.552 1
5.ing _ e 2.22 0.137 1
6.ing _ e 1.57 0.210 1
1.u bano 0.49 0.485 1
1.sexo 3.90 0.048 1
1.celula 1.52 0.218 1
2.edad_ 3.18 0.074 1
3.edad_ 2.11 0.146 1
4.edad_ 1.33 0.248 1
5.edad_ 0.05 0.822 1
6.edad_ 2.36 0.125 1
A signi ican es s a is ic p o ides e idence ha he pa allel eg ession assump ion has been iola ed.
COGENT ECONOMICS & FINANCE 7
Appendix A. Dependen a iable inancial li e acy
Table A1. Financial li e acy cons uc .
Financial Knowledge Cons uc
F om he di e en sen ences please indica e wich o hem you
conside ue o alse
T ue(1) False (0)
4.7.1. In la ion means ha he p ice o hings inc eases
4.7.2. I someone o e s you he abili y o make money easily, you can
easily lose i as well.
4.7.3 I ’s be e o sa e money in wo o mo e ways o places han in
jus one (a sa ings accoun , a ba ch wi h amily o
acquain ances, e c.)
Ci cula e jus one
13.1. I you lend 25 pesos o a iend and he nex week you pay
hem back he 25 pesos, how much did you pay hem in in e es ?
No hing
O he Value
Don’ know
13.2. Le ’s say you deposi 100 pesos in o a sa ings accoun ha gi es
you a p o i o 2% a yea . I you don’ make deposi s o
wi hd awals, including in e es , you’ll ha e a he end o he
yea …
mo e han 102 pesos? exac ly 102 pesos? less han 102
pesos? Doesn’ espond
Don’ know
13.3 I you deposi 100 pesos in a sa ings accoun ha gi es you a
p o i o 2% a yea and make no deposi s o wi hd awals, including
in e es , you will ha e a he end o i e yea s …
mo e han 110 pesos?
Exac ly 110 pesos?
less han 110 pesos?
Doesn’ espond
Don’ know
13.4 I you a e gi en $1000 pesos, bu you ha e o wai a yea o
spend i and in ha yea in la ion is 5%, could you buy?
mo e han you can buy oday?
The same?
less han you can buy oday?
Don’ know
Financial Beha iou (9 poin s)
14.1 A e decisions abou how money is spen o sa ed in you home
made by you home?
4.1 Do you keep a budge o eco d o you income and expenses?
4.2. Fo you o you home …
4.2.1 Do you make expenses no es?
4.2.2 Do you keep money o paymen s o deb s sepa a e om money
o daily spending?
4.2.3 Do you keep ack o any ou s anding eceip s o deb s o make
su e you don’ o ge o pay hem?
4.2.4 Do you use a mobile app o money managemen ool o ack
spending?
4.2.5 Do you ha e any o you paymen s au oma ically cha ged o an
accoun o ca d (di ec debi )?
jus you?
you and ano he pe son(s) in he household?
only one o he pe son o pe sons in he household?
O he wise
Sa ings:
5.7 F om July 2020 o da e, ha e you sa ed o sa ed in you
1. Pay oll accoun o ca d (whe e you deposi you paycheck)?.
2. Pension accoun o ca d (whe e do you deposi you pension)?.
3. Accoun o ca d o ecei e go e nmen suppo ?
4. Sa ings accoun ? ……………………………………
5. Checking accoun ? ………………………………ˆ
:
6. Fixed- e m deposi (can you only wi hd aw on ce ain da es)?
7. In es men und (holding sha es in a b oke age i m)?
………………………
8. An accoun con ac ed h ough he In e ne o an applica ion such
as Me cado Pago o Albo?
9. O he
Yes/No
O e spending:
4.3 F om July 2020 o da e, was wha you ea ned o ecei ed each
mon h enough o co e you expenses?
4.4 The las ime you couldn’ co e you expenses, did you …
2. You used he money you had
sa ed? …………………………………….
3. Reduced you expenses? ………………………
……………………………………ˆ
:
4. Sold o pawned any p ope y? ……………………
…………………………
5. Did you applied o a sala y ad ance, wo ked o e ime, did no do
empo a y wo k? ……
Yes/No
(con inued)
14 J. GONZÁLEZ-NÚÑEZ ET AL.
Table A1. Con inued.
Financial Knowledge Cons uc
P oduc Compa ison
5.15 Be o e signing up o you (las ) (sa ings) accoun , did you
compa e i wi h o he p oduc s, in o he banks o in o he inancial
ins i u ions?
6.11 Be o e aking ou you (las ) loan, did you compa e i wi h o he
p oduc s, in o he banks o in o he inancial ins i u ions?
8.11 Be o e aking ou you (las ) insu ance, did you compa e i wi h
o he insu ances, o he insu e s o inancial ins i u ions?
Yes/No
Means o Compa e
5.16 To compa e you accoun , did you use …
3. Si es o pages o ins i u ions such as Conduse
4
o Banco de M
exico?
5. Recommenda ion om specialis s o analys s?
6.12 To compa e you c edi , did you use …
3. Si es o pages o ins i u ions such as Conduse o Banco de M
exico?
5. Recommenda ion om specialis s o analys s?
8.12 To compa e you insu ance, did you use …
3. Si es o pages o ins i u ions such as Conduse ,Na ional Insu ance
and Bonding Commission, among o he s?
5. Recommenda ion om specialis s o analys s?
Yes/No
Re ision
4.8 Now I am going o ead a ew sen ences. You will answe me o
wha deg ee o ex en you ag ee o disag ee
3. Keeps a de ailed e iew o you money managemen
Yes/No
Goals
4.6 Gene ally
4. Do you se long- e m inancial goals and s i e o achie e hem
(buying a home, sa ing o e i emen , paying o aca ions o
pa ies, s a ing a business, e c.)?
Yes/No
Re lec s
4.6 Gene ally …
1. Do you ca e ully conside whe he you can a o d some hing be o e
you buy i ?
Yes/No
Pay on ime
4.6 Gene ally …
2 Do you pay you bills on ime (c edi ca d, u ili ies, c edi , e c.)? ….
Yes/No
Financial a i udes
Spending P e e ence A i ude
4.6 Gene ally …
3. Would you a he spend money han sa e i o he u u e?
I ag ee
Nei he ag ee no disag ee
Disag ee
A i ude wi hou wo y abou he u u e
4.8 Now I am going o ead a ew sen ences. You will answe me o
wha deg ee o ex en you ag ee o disag ee
1. Tends o hink abou he p esen wi hou wo ying abou he
u u e.
I ag ee
Nei he ag ee no disag ee
Disag ee
Spending A i ude
4.8 Now I am going o ead a ew sen ences. You will answe me o
wha deg ee o ex en you ag ee o disag ee
2. Money is mean o be spen .
I ag ee
Nei he ag ee no disag ee
Disag ee
COGENT ECONOMICS & FINANCE 15
