Financial literacy and behavioral biases. An analysis of their impact on financial well-being

Abstract

This research explores the relationship between the degree of financial literacy, the presence of behavioral biases in the financial decision-making process and its impact on the financial well-being of university professors at the Centro Universitario de la Costa in Puerto Vallarta, Jalisco. An instrument was applied to evaluate the presence of behavioral biases in the personal financial decision-making process, as well as the financial literacy index and how both variables affect the perception of financial well-being. Through a multinomial logit model, it is established that the presence of behavioral biases and the literacy rate have a strong impact on the perception of financial well-being