How Financially Literate Is Generation Z? A Cross-Country Study (Cuadernos de Gestión)

Summary

• Primary microdata was collected from 1,653 university students to evaluate the determinants of Generation Z financial literacy across Spain and Ecuador.p.1
• Spain implemented its Financial Education Plan in 2008, whereas Ecuador incorporated financial education into its national curriculum in 2023.p.2
• Women represent 67.0% of the surveyed student sample in Ecuador and 61.3% in Spain.p.6
• Students in Spain display higher overall financial literacy scores than those in Ecuador, averaging 3.85 compared to 3.24 out of 8.p.8
• Correct answer rates for inflation reach 94.21% among Spanish men and 80.12% among Spanish women, compared to 57.86% for men and 32.69% for women in Ecuador.p.8
• Enrolment in business or economics programmes is strongly associated with higher financial literacy in both Ecuador (β = 1.233) and Spain (β = 0.870).p.9
• Blinder–Oaxaca decomposition reveals that unexplained behavioural factors account for 83.8% of the gender gap in Ecuador and 88.3% of the gap in Spain.p.11

Key insights

1. Academic specialisation in business or economics serves as the single strongest positive predictor of financial literacy across both analysed countries.p.9
2. Technology exposure displays a positive association with financial knowledge in both Spain (β = 0.472) and Ecuador (β = 0.365).p.9
3. The gender gap in financial literacy is wider in Spain at 1.455 points compared to 0.679 points in Ecuador.p.11
4. The vast majority of gender disparities in financial literacy stem from structural and behavioural factors rather than differences in observable individual characteristics.p.11
5. Correct response rates for digital financial concepts such as blockchain, cryptocurrencies, fintech, and crowdfunding remain under 30% in most student sub-groups.p.8
6. Adherence to traditional gender stereotypes negatively impacts financial literacy specifically among male students in Spain.p.10
7. Over 90% of young adults aged 15-24 in Spain hold an account with a financial institution or mobile money provider.p.12