The origin and intensity of socio-economic deprivation in the light of financial literacy

Ramos, Thais Borges; Galanos, Aliki Karagrigoriou; Dutra, Vanessa Rabelo; Flores, Silvia Amélia Mendonça; Oliveira, Sibele Vasconcelos de

doi:10.1590/1678-6971/eRAMF250101

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Strategic Finance • RAM, Rev. Adm. Mackenzie 26 (5) • 2025 • https://doi.org/10.1590/1678-6971/eRAMF250101 linkcopy

The origin and intensity of socio-economic deprivation in the light of financial literacy

A origem e a intensidade das privações socioeconômicas à luz da alfabetização financeira

Authorship SCIMAGO INSTITUTIONS RANKINGS

Abstract

Purpose: Financial literacy has an influence on development processes and poverty reduction, promoting financial citizenship and opportunities for individuals to have better living conditions. The research sought to identify the origin and intensity of socio-economic deprivation in the light of financial literacy

Originality/value: The study has theoretical and practical implications by providing empirical insights that can help formulate public policies aimed at boosting the financial literacy of the population.

Design/methodology/approach: The research, of quantitative nature, was carried out in Santana do Livramento, where a questionnaire was applied at busy places. Analyses were conducted using descriptive statistics, the Alkire-Foster method and chi-square tests.

Findings: The analysis showed a sample of 401 respondents, 61.28% of whom had low levels of financial literacy. Regarding financial literacy, the determining factors for the origin of deprivation were gender, marital status, mother’s and father’s schooling, their own monthly income, having debt and the situation of overall deprivation. The main sources of deprivation were those related to the education of the parents and the respondent him/herself, as well as monthly income. On the other hand, participants showed less deprivation in access to washing machines and the internet.

Keywords:
financial literacy; deprivation; development; inequality; Alkire-Foster methodology

Variable	Response	Deprivation condition	Literature for defining the cutoff line
Gender	Male	0	Brown & Graf (2013); Kadoya & Khan (2020); Lotto (2020); Lusardi et al. (2010); Lusardi & Mitchell (2011); Mottola (2013); Niehues et al. (2023); Potrich et al. (2013, 2015)
	Female	1
	Others	1
Age (in years)	Young adults (18 to 34)	1	Brown & Graf (2013); Kadoya & Khan (2020); Lotto (2020); Lusardi & Mitchell (2011); Potrich et al. (2013)
	Adult and Middle-aged (35 to 64)	0
	Elderly (more than 65)	1
Marital Status	Single	1	Brown & Graf (2013)
	Separated or Divorcee
	Widowed
	Married	0
	In a stable relationship	0
Do you have children?	No	0	Servon & Kaestner (2008)
Do you have children?	Yes	1	Servon & Kaestner (2008)
If you have children, how many?	One child	0	Servon & Kaestner (2008)
If you have children, how many?	Two or more children	1
What is the age range of your children?	Under 18	1
	Over 18	0
	It does not apply	0
Do you have any other dependents?	Yes	1	Potrich et al. (2015)
Do you have any other dependents?	No	0	Potrich et al. (2015)
Race	Yellow	1	Lusardi et al. (2010); Lusardi & Mitchell (2011); Potrich et al. (2013)
	White	0
	Indigenous	1
	Browr
	Black
	No declaration
Level of Education	Complete Elementary School	1	Brown & Graf (2013); Kadoya & Khan (2020); Karakara et al. (2022); Lotto (2020); Lusardi et al. (2010); Lusardi & Mitchell (2011); Niehues et al. (2023); Potrich et al. (2013, 2015)
	Incomplete High School
	Complete High School
	Ongoing Higher Education
	Complete Higher Education	0
	Ongoing, Incomplete, or Complete Postgraduate	0
Mother's level of education	Complete Elementary School	1	Lusardi et al. (2010)
	Incomplete High School
	Complete High School
	Ongoing Higher Education
	Complete Higher Education	0
	Ongoing, Incomplete, or Complete Postgraduate	0
Father's level of educatlor	Complete Elementary School	1	Lusardi et al. (2010)
	Incomplete High School
	Complete High School
	Ongoing Higher Education
	Complete Higher Education	0
	Ongoing, Incomplete, or Complete Postgraduate	0
Occupatior	Formal employment	0	Brown & Graf (2013); Karakara et al. (2022); Lotto (2020); Lusardi & Mitchell (2011); Potrich et al. (2013)
	Informal employment	1
	Not working	1
Owr average monthly income	Up to BRL $ 2.900	1	Potrich et al. (2013, 2015); Lotto (2020)
	Between BRL $ 2.900 and BRL $ 7.100	0
	Between BRL $ 7.100 and BRL $ 22.000
	Above BRL $ 22.000
Family average monthly income	Up to BRL $ 2.900	1	Potrich et al. (2015)
	Between BRL $ 2.900 and BRL $ 7.100	0
	Between BRL $ 7.100 and BRL $ 22.000
	Above BRL $ 22.000
Do you have ary debt?	No	0	Donadio et al. (2012); Lusardi & Tufano (2015)
Do you have ary debt?	Yes	1	Donadio et al. (2012); Lusardi & Tufano (2015)
Is your debt overdue?	No	0	Littwin (2008); Reis (2016)
Is your debt overdue?	Yes	1	Littwin (2008); Reis (2016)
How many people do you live with?	Up to three people	0	Karakara et al. (2022).
How many people do you live with?	More than three people	1	Karakara et al. (2022).
How many bedrooms are in your house?	Up to one	1	Kertenezky et al. (2011).
How many bedrooms are in your house?	More than one	0	Kertenezky et al. (2011).
Does your house have a washing machine?	No	1	Batista & De Oliveira (2022); Kertenezky et al. (2011)
Does your house have a washing machine?	Yes	0	Batista & De Oliveira (2022); Kertenezky et al. (2011)
Is the house you live in your own?	No	1	Batista & De Oliveira (2022); Kertenezky et al. (2011)
	Yes, and I am still paying	1
	Yes, and I already paic	0
Do you own a car and/or motorcycle?	No	1	Alkire & Santos (2010)
Do you own a car and/or motorcycle?	Yes	0	Alkire & Santos (2010)
Do you have access to the internet at home?	No	1	Batista & De Oliveira (2022); Pereira et al. (2020)
Do you have access to the internet at home?	Yes	0
Do you use the internet to gair more financial knowledge?	No	1
Do you use the internet to gair more financial knowledge?	Yes	0
Do you use Internet Banking?	No	1	De Souza et al. (2018)
Do you use Internet Banking?	Yes	0	De Souza et al. (2018)

Variable	Freq.	%	Financially literate		Financially Illiterate
Variable	Freq.	%	Deprived	Not deprived	Deprived	Not deprived
Gender
Female	239	50.05	26	23	160	22
Male	153	38.44	22	31	73	25
Others	6	1.51	0	0	5	1
Race
White	320	80	41	50	176	47
Brown	43	10.75	4	3	35	0
Black	33	8.25	3	1	24	2
No declaration	2	0.5	0	0	2	0
Yellow	1	0.25	0	0	1	0
Indigenous	1	0.25	0	0	1	0
Marital Status
Single	173	43.25	20	19	118	15
Married	142	35.5	14	24	73	23
In a stable relationship	46	11.5	8	10	20	6
Separated/Divorced	26	6.5	4	1	16	5
Widowed	13	3.25	2	0	11	0

	Total sample		Deprived				Not deprived
Variable	Obs	Mean	Mean	SD	Min.	Max.	Mean	SD	Min.	Max.
Attitude	390	0.50	0.53	0.17	0.2	1	0.39	0.14	0.2	0.7
Knowledge	390	0.59	0.52	0.21	0	1	0.78	0.12	0.46	1
Behaviour	390	0.59	0.51	0.17	0.2	0.97	0.81	0.13	0.48	1

Indicator	Deprivation (%)
1 - Female and others	69.04%
2 - Singles, Separated/divorced or widowed	60.67%
3 - Having children	43.93%
4 - Having more than one child	35.56%
5 - Having dependents	16.74%
6 - Non-white	26.36%
7 - Own education (from elementary school to higher education in progress)	89.96%
8 - Mother’s education (from elementary school to higher education in progress)	90.79%
9 - Father’s education (from elementary school to higher education in progress)	94.14%
10 - Informal workers or unemployec	43.10%
11 - From 18 to 34 and above 65 years old	76.99%
12 - Own income up to BRL $ 2.9 thousand	79.08%
13 - Family income up to BRL $ 2.9 thousand	42.68%
14 - Having debt	58.16%
15 - Having debt overdue	29.29%
16 - Living with more than three people	22.18%
17 - Up to one bedroom	11.30%
18 - Not having washing machine	5.02%
19 - Non-owned or non-paid-off housing	48.12%
20 - No own car or motorcycle	43.10%
21 - No internet access	3.77%
22 - Do not use internet to gain financial knowledge	58.16%
23 - Do not use Internet Banking	44.35%

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Editora Mackenzie; Universidade Presbiteriana Mackenzie Rua da Consolação, 896, Edifício Rev. Modesto Carvalhosa, Térreo - Coordenação da RAM, Consolação - São Paulo - SP - Brasil - cep 01302-907 - São Paulo - SP - Brazil
E-mail: revista.adm@mackenzie.br

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