Financial literacy and the use of credit cards in Mexico

Abstract

The objective of this research is to determine the level of financial literacy of Mexican cardholders and its relationship with sociodemographic variables. The influence of financial education on the level of financial literacy of this group, as well as the relationship between their level of financial literacy and their behavior towards debt contracted via credit cards are also explored. Data was obtained from the Mexican Survey of Financial Inclusion (ENIF, 2018). The sample was made up of 2,170 people who declared receiving income from salary and having a credit card. A Probit regression model was used, with which the significant variables related to the debtor behavior of the respondents were identified. The following sociodemographic control variables were included: gender, age, area of residence, country region, educational level, income from salary, economic dependents, marital status and financial training. The results indicate that Mexican cardholders have a higher level of financial literacy than the general population and that those with less financial literacy are more likely to belong to the group called “fee payers”. It was also found that women have a lower level of financial.