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

Kelmara Mendes Vieira (), Ani Caroline Grigion Potrich (), Taiane Keila Matheis () and Mayara Puhle ()
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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

International Review of Economics, 2025, vol. 72, issue 1, No 13, 22 pages

Abstract: 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.

Keywords: Financial freedom; Financial literacy; Gender; Race; Behavioral finance; Personal finance (search for similar items in EconPapers)
JEL-codes: G40 G53 I31 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s12232-025-00489-8

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