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Perception of financial freedom: is financial literacy a relevant background?

Author

Listed:
  • Kelmara Mendes Vieira

    (Federal University of Santa Maria)

  • Ani Caroline Grigion Potrich

    (Federal University of Santa Catarina)

  • Taiane Keila Matheis

    (Federal University of Santa Maria)

  • Mayara Puhle

    (Federal University of Santa Maria)

Abstract

This study aimed to evaluate the impact of financial literacy and its dimensions on the individual’s perception of financial freedom. In addition, we aimed to evaluate how both are perceived by different genders and races. The survey was carried out with 2920 respondents over 18 years old. As analysis techniques, we used confirmatory factor analysis, structural equation modeling, and mean difference tests. Results demonstrated the positive impact of financial literacy and its dimensions on the perception of financial freedom. Respondents had moderate levels of financial knowledge, financial behavior, and financial attitude, and sometimes feel financially free. Difference tests indicate that women and black and brown individuals are less financially literate and have a lower perception of financial freedom. It is essential that public administrators and financial agents adopt strategies to guarantee the expansion of financial literacy levels and financial freedom and, at the same time, the reduction of inequalities.

Suggested Citation

  • Kelmara Mendes Vieira & Ani Caroline Grigion Potrich & Taiane Keila Matheis & Mayara Puhle, 2025. "Perception of financial freedom: is financial literacy a relevant background?," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 72(1), pages 1-22, June.
    • Handle: RePEc:spr:inrvec:v:72:y:2025:i:1:d:10.1007_s12232-025-00489-8
    DOI: 10.1007/s12232-025-00489-8
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • G40 - Financial Economics - - Behavioral Finance - - - General
    • G53 - Financial Economics - - Household Finance - - - Financial Literacy
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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