Espirales. Revista multidisciplinaria de investigación científica, Vol. 6, No. 42
October - December - 2022. e-ISSN 2550-6862. pp 44-61
DOI https://doi.org/10.31876/ er.v6i43.830
Financial education in centennials: evidence from students
of public and private educational institutions in the city of
Loja, Ecuador
Educación financiera en centennials: evidencia en estudiantes de instituciones
educativas públicas y privadas de la ciudad de Loja, Ecuador
Jorge Luis Lopez-Lapo*
Silvana Elizabeth Hernández Ocampo**
Neusa Cecilia Cueva Jiménez***
Maritza Jackeline Peña Vélez****
Germania del Pilar Sarmiento Castillo*****
Received: May 17, 2022
Approved: August 30, 2022
* Master's Degree, Finance Career, School of Social
and Administrative Law, Universidad Nacional de Loja
jorge.lopez@unl.edu.ec, https://orcid.org/0000-0003-
0341-9723
** Master's Degree, Finance Career, School of Social
and Administrative Law, Universidad Nacional de Loja
silvana.hernandez@unl.edu.ec, https://orcid.org/0000-
0003-3202-267X
*** Master's Degree, Finance Career, Social and
Administrative Law School, Universidad Nacional de
Loja neusa.cueva@unl.edu.ec, https://orcid.org/0000-
0002-4002-3405
**** Master, Finance Career, School of Social and
Administrative Law, Universidad Nacional de Loja
maritza.pena@unl.edu.ec, https://orcid.org/0000-
0002-9644-0822
**** Master, Finance Career, School of Social and
Administrative Law, Universidad Nacional de Loja
germania.sarmiento@unl.edu.ec,
https://orcid.org/0000-0002-6302-809X
Abstract
Financial education is a process through which people obtain
greater knowledge about financial products and services. The
objective of this research is to measure the level of financial
education of "centennials" in public and private educational
institutions in the city of Loja. The methodology used is of an
exploratory-descriptive type, for the collection of information a
survey based on the PISA test was used, which was applied to
360 students from 11 institutions of the public and private
system, aged between 14 and 18 years old. The results show that
the financial knowledge of the students is located at level 4
according to the PISA performance levels and that men have
greater financial knowledge in relation to women, so it is
necessary to implement financial education programs that allow
students to reduce risk and minimize errors in decision making
by improving their basic financial knowledge.
Keyword:
centennials, financial education, financial education,
personal finance, educational institutions
Cite this:
López-Lapo, J., Hernández, S., Cueva, N.,
Peña, M., Sarmiento, G. (2022). Financial
education in centennials: evidence from
students of public and private educational
institutions in the city of Loja, Ecuador
Espirales. Revista Multidisciplinaria de
investigación científica, 6(42), 44-61
Jorge Luis Lopez-Lapo, Silvana Elizabeth Hernandez Ocampo, Neusa Cecilia Cueva Jimenez, Maritza Jackeline Peña
Velez, Germania del Pilar Sarmiento Castillo
Espirales. Revista multidisciplinaria de investigación científica, Vol. 6, No. 42
October - December - 2022. e-ISSN 2550-6862. pp 44-61
45
Introduction
The financial crises that have arisen in recent years, such as the case of the
national holiday and dollarization in Ecuador, the financial bubble of the real
estate system in the United States, the emergence of the cryptocurrency market
in several countries around the world and currently in Ecuador, Bolivia and Peru,
and the proliferation of money laundering companies also known as financial
pyramids, are clear examples of the different stages of financial crises that have
caused economic setbacks in several countries.
On the other hand, according to Meza (2021) financial inclusion is a worldwide
problem, which is reflected in the degree of bankarization, whose accessibility
can be improved through the empowerment of people's financial education,
making it vital to carry out research to explain how financial education in the
youth population could avoid financial exclusion, besides providing enough
information to make decisions that enable savings, safe investment, avoiding
risks and financial scams; In addition to contributing to sustainable and
environmentally friendly production processes, all these events have awakened
the interest of institutions worldwide to promote financial education and
inclusion.
According to Sconti (2022), with the advent of globalization and the
development of technology, people have greater access to financial products
and services, but the financial decisions that people must make are increasingly
Resumen
La educación financiera es un proceso mediante el cual las
personas obtienen un mayor conocimiento sobre los productos
y servicios financieros, la presente investigación tiene como
objetivo medir el nivel de educación financiera en “los
centennials” de las instituciones educativas públicas y privadas
de la ciudad de Loja. La metodología utilizada es de tipo
exploratorio-descriptivo, para la recolección de información se
utilizó una encuesta basada en el test PISA, la cual se aplicó a
360 estudiantes de 11 instituciones del sistema público y
privado, con edades comprendidas entre 14 y 18 años. Los
resultados demuestran que el conocimiento financiero de los
estudiantes se ubica en el nivel 4 de acuerdo con los niveles de
desempeño PISA y que los hombres poseen un mayor
conocimiento financiero en relación a las mujeres, por lo que es
necesario implementar programas de educación financiera que
permitan a los estudiantes reducir el riesgo y minimizar errores
en la toma de decisiones, mediante el mejoramiento de sus
conocimientos financieros básicos.
Palabras clave:
centennials, educación financiera, finanzas
personales, instituciones educativas
Financial education in centennials: evidence from students of public and private educational institutions in the city of
Loja, Ecuador
Espirales. Revista multidisciplinaria de investigación científica, Vol. 6, No. 42
October - December - 2022. e-ISSN 2550-6862. pp 44-61
46
complex, to avoid financial mistakes, people must make are increasingly
complex, to avoid financial mistakes, According to information from the World
Bank (2020), the lack of knowledge of available financial instruments and the lack
of skills or capacities for their use by the population negatively affect the
possibility of participating in the benefits of financial services.
In this same context, Da Silva et al. (2017) points out that negative financial
behavior can lead to greater difficulties in school performance, affecting their
mental and physical health. Given this approach, public and private entities have
sought alternatives to include in their activity plan, financial programs or
workshops, evidencing financial education as a key tool in the expansion of
financial inclusion, as it allows effective decision making, based on the
understanding of the concepts, risks and benefits of financial services.
The Organization for Economic Cooperation and Development OECD (2005)
states that the lack of financial education in today's society, marked by
globalization, information and knowledge, leads individuals and families to be
prone to indebtedness and bankruptcy. Likewise, he considers that more
educated people are required in financial matters, therefore, training in this
subject should begin as soon as possible, allowing that in the transit of the stages
of development, financially responsible citizens are formed for their decisions.
Therefore, financial education can be defined as the process by which financial
consumers/investors improve their understanding of financial products,
concepts and risks and, through information, instruction and/or advice, develop
the skills and confidence to become more aware of financial risks and
opportunities, to make informed choices, to know where to turn for help and to
take other effective actions to improve their financial wellbeing (OECD, 2005).
In other words, it is a continuous process that allows promoting the necessary
competencies to make informed and appropriate decisions, as well as providing
tools so that people have the ability to defend their rights as financial consumers
(García et al., 2013).
With this, it should be recognized that financial education is an element capable
of reducing social exclusion and developing the financial system; in addition, it
has been detected that people are unaware of the basic financial elements and
concepts, which leads them to make inadequate decisions regarding their
personal and family well-being (González, 2020, p. 2).
García et al. (2013) add to this approach by pointing out that financial education
can contribute to reducing barriers to the demand for financial inclusion. To this
Jorge Luis Lopez-Lapo, Silvana Elizabeth Hernandez Ocampo, Neusa Cecilia Cueva Jimenez, Maritza Jackeline Peña
Velez, Germania del Pilar Sarmiento Castillo
Espirales. Revista multidisciplinaria de investigación científica, Vol. 6, No. 42
October - December - 2022. e-ISSN 2550-6862. pp 44-61
47
extent, financial education can increase knowledge and understanding of
financial products and services and, as such, promote the demand for them, as
well as their effective use.
Against this background, financial education is of great importance and should
lead to improved knowledge and attitudes, but especially experiential learning,
as financial literacy could lead to more efficient acquisition of information on
financial topics, and better opportunities to realize business ideas and increase
self-employment (Cumurovic and Hyll, 2018).
The objective of financial education is not only to achieve a level of
competencies in citizens that allows them to make decisions autonomously, but
also to enable them to distinguish on what occasions it is possible to solve with
their abilities and on what other occasions they should ask for help to decide
(Bozzo and Remeseiro, 2021).
On the other hand, Tonatiúh (2021), good financial education practices relate to
"the most effective way to teach financial education is to include topics on the
subject in existing subjects such as mathematics, social sciences and those
focused on students learning about the world around them" (para.1).
It is important to consider that the changing global economic situation requires
the promotion of education in financial matters, in order to provide new
generations with tools with which to make correct and more informed decisions,
thus also contributing to the economic stability of the world. It should be noted
that the insertion of financial education in educational institutions is one of the
fundamental elements of national strategies, being necessary financial education
at early ages, in order to avoid economic imbalances, and that colleges and
universities on a global scale get involved with action plans (Méndez and Quimis,
2018).
However, according to the report by García et al. (2013), in Latin America there
is a generalized ignorance in the population regarding basic financial concepts
such as: inflation, interest rates, the relationship between risk and profitability,
and the functioning of the capital market. It is also mentioned that in 50% of
Latin American countries, financial education initiatives in schools are not part of
national strategies, considering the insertion of financial education in schools an
effective way to disseminate financial culture and create conditions to generate
positive effects.
According to the PISA study on financial competence OECD (2015), the results
reflect the degree to which 15-year-old students have acquired financial
Financial education in centennials: evidence from students of public and private educational institutions in the city of
Loja, Ecuador
Espirales. Revista multidisciplinaria de investigación científica, Vol. 6, No. 42
October - December - 2022. e-ISSN 2550-6862. pp 44-61
48
knowledge and skills, with the results indicating that more than 20% of students
in Brazil (53%), Chile (38%), Peru (48%) and Spain (25%) do not reach the basic
level of performance in financial competence.
On the other hand, the Central Bank of Ecuador (2018), points out that financial
education is one of the biggest challenges, and according to the Annual Bulletin
of Financial Inclusion Statistics 93% of respondents indicated that they have not
received talks or material about this topic, on the other hand, it is evident that
individuals are not interested in seeking alternatives that allow them to maintain,
distribute and strengthen their monetary gains, causing them to make decisions
and perform incorrect financial practices, evidencing a low level of financial
knowledge.
It is also worth mentioning Meza (2021) in the study of 23 provinces in Ecuador
found that the population with individual characteristics, the conditions of
geographical location of the household influence the perception of having a
high or low level of financial knowledge and that in Ecuador its population has a
low level of financial knowledge. Likewise, according to the latest data available
as of 2017 from the Global Findex of the World Bank (WB), in Ecuador only 13%
of the population over 15 years of age had access to productive savings, and in
the case of credit the level of coverage is 17% of this population, these figures
are negative since they are located below the global indicator for Latin America
and the Caribbean, which according to the same source indicates that only 14%
of the population has access to savings and 21% to credit. Faced with this reality,
private financial institutions have proposed financial inclusion strategies (
Asociación de Bancos del Ecuador , 2021). This is why the Superintendency of
Banks of Ecuador (SBS) is encouraging most of the country's financial institutions
to carry out financial education programs (Méndez and Quimis, 2018).
However, Gamboa et al. (2019) mention that in schools financial education is not
projected as a priority topic that contributes and, therefore, it is excluded as an
enriching element of integral education, considering that young people are a
very attractive segment of the population to achieve a faster and more effective
banking education, which will allow improving the level of financial education of
young people, specifically of centennials, so called people born after 1995 and
identified as digital natives, a critical generation, who have access to all the
information they want, so it is a challenge for traditional education processes,
where a context without access to all the elements that the market offers from a
technological perspective is unthinkable (Perilla, 2018).
It is necessary to emphasize that the cell phone is part of their daily life, access
to information through the network and the possibility of being permanently
Jorge Luis Lopez-Lapo, Silvana Elizabeth Hernandez Ocampo, Neusa Cecilia Cueva Jimenez, Maritza Jackeline Peña
Velez, Germania del Pilar Sarmiento Castillo
Espirales. Revista multidisciplinaria de investigación científica, Vol. 6, No. 42
October - December - 2022. e-ISSN 2550-6862. pp 44-61
49
connected is a reality (Arab and Díaz, 2015). In these considerations, the research
aims to measure the level of financial education in "the centennials" of public
and private educational institutions in the city of Loja, to identify whether this
generation with access to technological tools, knows about financial issues.
Given this approach, the research question focuses on determining what is the
level of financial knowledge of high school students in public and private
educational institutions in the city of Loja?
Materials and methods
Quantitative, exploratory-descriptive study. There was a sample of 360 students
from 11 public and private institutions in the city of Loja who consented to
participate in the study. Inclusion criteria: high school students between 14 and
18 years of age. Exclusion criteria: general basic education students under 14
years of age.
To ensure the standardization of information collection, all researchers were
trained on how the form works, as well as the inclusion and exclusion criteria,
and a pilot stage was carried out to test the form's operation and check the
adequacy of the planned questions. The survey consisted of 14 questions,
divided into categories: general data and financial knowledge. The instrument
was applied in person and online using QuestionPro survey software.
The ideal distribution of process scores for financial competency is shown in
Table 1. The financial competency assessment comprises a broad sample of
questions covering different levels of difficulty, which allows measuring and
describing students' strengths and weaknesses; and distinguishing between
high and low scoring students.
To assign a score to each question of the survey, a matrix was used in which four
categories were evaluated, the weightings and categories were considered
based on the methodology applied by the Organization for Economic
Cooperation and Development (2016). Afterwards, the answers were classified
using PSPP software and spreadsheets to obtain the level of financial knowledge.
Financial education in centennials: evidence from students of public and private educational institutions in the city of
Loja, Ecuador
Espirales. Revista multidisciplinaria de investigación científica, Vol. 6, No. 42
October - December - 2022. e-ISSN 2550-6862. pp 44-61
50
Table 1.
Distribution of financial literacy scores by process
Weighting
35%
100%
Note. Adapted from Organization for Economic Cooperation and Development
(2016).
As mentioned by the Education Quality Agency (2017), PISA performance levels
are qualitative descriptions demonstrated by participants through the tests. Each
question is associated to a point on the scale indicating its level of difficulty, and
respondents are related to a point on the same scale, indicating their estimated
level of financial literacy. Table 2 shows the definitions and standardization of
financial education, consequently, the financial knowledge of high school
students in the city of Loja was classified by level.
Table 2.
Definitions of financial education levels
Level of
financial
education
Definition
Level 5
[80%-100%]
Students can apply their understanding of a wide range of financial
terms and concepts to contexts that will be relevant to their long-term
lives. They can analyze complex financial products and take into
account features of financial documents that are significant but
unstated such as transaction costs. They can work with a high level of
accuracy, solve non-routine financial problems, and describe the
potential outcomes of financial decisions, showing a broad
understanding of the financial landscape.
Level 4
[60%-80%)
Students can apply their understanding of less common financial
concepts and terms to contexts that will be relevant to them as they
move into adulthood such as bank account management and
compound interest in savings products. They can interpret and
evaluate a range of detailed financial documents, such as bank
documents, and explain the functions of less commonly used financial
Jorge Luis Lopez-Lapo, Silvana Elizabeth Hernandez Ocampo, Neusa Cecilia Cueva Jimenez, Maritza Jackeline Peña
Velez, Germania del Pilar Sarmiento Castillo
Espirales. Revista multidisciplinaria de investigación científica, Vol. 6, No. 42
October - December - 2022. e-ISSN 2550-6862. pp 44-61
51
products. They can make financial decisions about loans; and they can
solve routine problems in less common financial contexts.
Level 3
[40%-60%)
Students can apply their understanding of financial concepts and
commonly used products to situations that are relevant to them. They
begin to consider the consequences of financial decisions and can
make simple financial plans in familiar contexts. They can make
straightforward interpretations of a range of financial documents and
can apply a range of basic numerical operations including calculating
percentages. They can choose number operations to solve common
financial literacy problems such as budget calculations.
Level 2
[20%-40%)
Students begin to apply their knowledge of commonly used financial
concepts and common financial products. They can use the
information given to make financial decisions in contexts that are
immediately relevant to them. They can recognize the value of a
simple budget and can interpret prominent features of everyday
financial documents. They also apply basic number operations,
including division, to answer financial questions. They demonstrate an
understanding of the relationships between quantities and costs
incurred.
Level 1
[0%-20%)
Students can identify common financial products and terms and
interpret information related to basic financial concepts, as well as
recognize the difference between needs and wants, and make simple
decisions about daily spending. They can recognize the purpose of
everyday financial documents such as an invoice and apply simple,
basic number operations (addition, subtraction, or multiplication) in
financial contexts that they are likely to have experienced personally.
Note. adapted from Agencia de Calidad de la Educación (2017).
Results
The characteristics of the population are presented in Table 3, the results
indicate that the age range of the respondents is 14 to 18 years old and the
average age is 15 years old. Most of the informants are men. The predominant
area of residence is the urban parish of San Sebastián in the city of Loja.
Regarding the year of high school they attend, most of them were students in
the first year of high school, and the type of educational institution they attend
is mostly in the public system.
Financial education in centennials: evidence from students of public and private educational institutions in the city of
Loja, Ecuador
Espirales. Revista multidisciplinaria de investigación científica, Vol. 6, No. 42
October - December - 2022. e-ISSN 2550-6862. pp 44-61
52
Table 3.
Demographic data of participants
Level of Financial Education
Level
1
Level 2
Level 3
Level 4
Level 5
%
%
%
%
%
Total
Age
14,00
0,28
%
5,00%
7,22%
10,00
%
4,44%
26,94
%
15,00
1,39
%
2,78%
7,78%
10,00
%
5,56%
27,50
%
16,00
0,83
%
4,17%
6,39%
10,83
%
8,33%
30,56
%
17,00
0,28
%
1,94%
3,61%
4,44%
1,67%
11,94
%
18,00
0,00
%
0,56%
0,56%
1,67%
0,28%
3,06%
Genre
Male
0,28
%
7,50%
11,94
%
20,83
%
10,00
%
50,56
%
Female
2,50
%
6,94%
13,61
%
16,11
%
10,28
%
49,44
%
Ethnic self-
identificatio
n
Mongrel
1,94
%
12,78
%
23,89
%
34,72
%
18,89
%
92,22
%
Indigenous
0,00
%
0,00%
0,83%
0,00%
0,00%
0,83%
Afro-Ecuadorian
0,28
%
0,83%
0,56%
0,83%
0,00%
2,50%
Mulato
0,00
%
0,00%
0,00%
0,28%
0,00%
0,28%
White
0,56
%
0,83%
0,28%
1,11%
1,39%
4,17%
Area of
residence
El Sagrario
0,28
%
2,22%
2,78%
3,06%
2,22%
10,56
%
Sucre
0,00
%
4,17%
7,78%
6,94%
5,00%
23,89
%
Jorge Luis Lopez-Lapo, Silvana Elizabeth Hernandez Ocampo, Neusa Cecilia Cueva Jimenez, Maritza Jackeline Peña
Velez, Germania del Pilar Sarmiento Castillo
Espirales. Revista multidisciplinaria de investigación científica, Vol. 6, No. 42
October - December - 2022. e-ISSN 2550-6862. pp 44-61
53
El Valle
0,56
%
3,06%
5,00%
7,22%
2,22%
18,06
%
San Sebastian
0,28
%
3,06%
5,83%
10,28
%
5,28%
24,72
%
Punzara
0,83
%
0,83%
1,67%
4,72%
3,33%
11,39
%
Carigán
0,83
%
1,11%
2,50%
4,72%
2,22%
11,39
%
Year of high
school
First
1,11
%
6,67%
10,56
%
13,89
%
6,39%
38,61
%
Second
0,56
%
4,72%
9,44%
12,22
%
6,39%
33,33
%
Third
1,11
%
3,06%
5,56%
10,83
%
7,50%
28,06
%
Type of
institution
Public
2,50
%
11,11
%
21,94
%
24,72
%
12,50
%
72,78
%
Private
0,00
%
0,56%
1,11%
4,44%
3,06%
9,17%
Fiscomisional
0,28
%
2,78%
2,50%
7,78%
4,72%
18,06
%
Regarding the level of financial education, Table 4 shows the results of the
participants. The level of financial literacy of students in first, second and third
year of high school of the public and private system institutions in the city of Loja
is 61.34%, consequently, they are located at Level 4 according to the PISA
performance levels which is organized and conducted by the Organization for
Economic Cooperation and Development (2016). Consequently, students are
able to apply their understanding of less common financial concepts and terms
to contexts that will be relevant to them as they move into adulthood. They can
interpret and evaluate a range of detailed financial documents, such as banking
documents, and explain the functions of less commonly used financial products.
They can make financial decisions with longer-term consequences in mind, such
as understanding the implications of repaying a loan over a longer period; and
they can solve routine problems in less common financial contexts.
Financial education in centennials: evidence from students of public and private educational institutions in the city of
Loja, Ecuador
Espirales. Revista multidisciplinaria de investigación científica, Vol. 6, No. 42
October - December - 2022. e-ISSN 2550-6862. pp 44-61
54
Table 4.
General financial literacy
Process
Questions
Percentage
Value
per
question
Correct
answers
Overall
percentage
Individual
percentage
Identify
financial
information
1
3,00%
189
52,50%
1,58%
3,00%
49,44%
1,48%
3,00%
241
66,94%
2,01%
3,00%
259
71,94%
2,16%
5
3,00%
269
74,72%
2,24%
Apply
financial
knowledge
and
understanding
6,25%
162
45,00%
2,81%
6,25%
21,11%
1,32%
6,25%
189
52,50%
3,28%
6,25%
301
83,61%
5,23%
Analyze
information in
a financial
context
12,50%
299
83,06%
10,38%
12,50%
215
59,72%
7,47%
Evaluate
financial
issues
35%
11,67%
62,22%
7,26%
11,67%
301
83,61%
9,75%
11,67%
135
37,50%
4,38%
Total
100%
61,34%
Financial literacy is defined as "the knowledge and understanding of financial
concepts and risks; and the skills, motivation and confidence to apply that
knowledge to make effective decisions in a range of contexts. All of the above
to improve the financial well-being of individuals and society, and to enable
participation in economic life" (OECD, 2012, p. 12).
The level of financial knowledge by performance level is presented in Table 5.
At performance level one (2.78%), participants identify common financial
products and terms and interpret information related to basic financial product
concepts.
Jorge Luis Lopez-Lapo, Silvana Elizabeth Hernandez Ocampo, Neusa Cecilia Cueva Jimenez, Maritza Jackeline Peña
Velez, Germania del Pilar Sarmiento Castillo
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At performance level two (14.44%), students apply their knowledge of commonly
used financial concepts and common financial products. At performance level 3
(25.56%), informants consider the consequences of financial decisions and can
make simple financial plans in familiar contexts. In contrast, at performance level
4 (36.94%), students apply knowledge about less common financial concepts,
terms and products that are relevant in adulthood, such as bank management or
compound interest in savings, and at performance level 5 (20.28%), students can
work with a high level of accuracy, solve non-routine financial problems, and can
describe the potential outcomes of financial decisions, showing a broad
understanding of the financial landscape.
Table 5.
Financial knowledge by performance level
Level
Frequency
Percentage
Level 1
2,78%
Level 2
14,44%
Level 3
92
25,56%
Level 4
36,94%
Level 5
20,28%
Total
100,00%
Finally, Figure 1 reveals information on financial education with a gender focus;
the study concludes that men have better results than women. Consequently,
there is a gender gap in financial knowledge in favor of men, since on average
they are at performance level four (62.89%) while women are at level three
(59.76%).
Figure 1.
Level of financial education and gender
Financial education in centennials: evidence from students of public and private educational institutions in the city of
Loja, Ecuador
Espirales. Revista multidisciplinaria de investigación científica, Vol. 6, No. 42
October - December - 2022. e-ISSN 2550-6862. pp 44-61
56
The financial system is in continuous change both in European countries and in
those located in America, so digitalization opens possibilities of easy access to
financial operations in which all kinds of goods are negotiated, leading people
to buy products or services potentially, resulting in an inadequate management
of personal finances. These advances and more, condition people to be
financially responsible and autonomous, being essential to start transferring
financial knowledge from the classrooms where young people who will later be
inserted into the labor field attend.
Based on the above context, Kraitzek et al. (2022). summarizes the findings in
the comparative study of financial knowledge and understanding conducted on
1218 and 1108 American and German students respectively, using the Test of
Fnancial Literacy (Walstad and Rebec, 2016) that evidences the heterogeneity
between both categories, and even finds substantial differences between
students from each country internally, which resulted from a sample obtained in
grades 11 and 12 (16 to 18 years old). These results are similar to those
determined in this study in terms of internal and internal differences, which
showed the gap between male students who have a level 4 financial education
and their female counterparts who were below this level.
It is essential to broaden the range of research conceptualized to financial
education under three parameters described by Aprea et al. (2015), which are:
a) education in personal finance management; b) critical consumer education for
the purchase of goods and services; and c) economic and socioeconomic
education, with the aim of covering in the first instance the boom in online
purchases and transactions, especially by young people. In this way, the
dimensions of financial knowledge, understanding and application, necessary to
manage finances correctly, are addressed.
Research goes beyond the management of personal finances and assumes the
proposal of measuring whether or not young people are capable of facing the
challenges of preparation in the areas of: a) income generation; b) savings; c)
use of credit; d) financial investment; and, c) protection and insurance. Each of
these standards described by the Council for Economic Education (2013) are
supported by sections on planning, goal setting, decision making and evaluation
of results, since it cannot be denied that today's generations of young people
and adolescents are one hundred percent familiar with technology, which puts
Jorge Luis Lopez-Lapo, Silvana Elizabeth Hernandez Ocampo, Neusa Cecilia Cueva Jimenez, Maritza Jackeline Peña
Velez, Germania del Pilar Sarmiento Castillo
Espirales. Revista multidisciplinaria de investigación científica, Vol. 6, No. 42
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57
business opportunities within their reach, as well as unrealistic scenarios that lead
them to financial bankruptcy before achieving the desired success.
Valenzuela et al. (2022) in their research work consider the topics indicated
above as important for young people's decision making; thus, after conducting
a survey of a total of 391 students with an average age of 21 years, they
determined that debt options are already significantly addressed, however,
financial education related to knowledge explains only 6.8% of these decisions;
in addition, of the 100% of the participants who have debt, 50.8% have a job
that provides them with income. Within this context, a degree of irresponsibility
is evident in the students of this research, who despite being aware of their lack
of income, are not conscious at the time of acquiring debt.
It is imperative that from an early age, the conceptualization of obligatory
payment commitments and their effects due to omitted actions, especially on
unsubstantiated debts, be handled; thus, young people will be able to evaluate
credit offers according to their ability to pay through a rational cost-benefit
analysis.
These transactions that end in debt are preceded by flashy and misleading
advertising campaigns, which offer access and ease of payment with high hidden
financial costs, with the aim of retaining the attention of this group of people.
The authors Minella et al. (2017) agree with this statement, pointing out that
young people due to their size characteristic are an important target that are
increasingly approaching countless purchasing possibilities, mainly through
virtual media, without discarding the importance of the physical environment; in
both cases they face the launch of product offerings, payment and delivery
systems, and countless facilities, thus becoming an attractive market that grants
many profits to the interested parties.
Conclusions
Based on the results obtained, it is concluded that of the four airlines that
operate domestic flights in Ecuador, Latam Airlines showed dominance in this
market by routes and frequencies to and from the Mariscal Sucre International
Airport in Quito during the weekly cut-off period from June 20 to 24, 2022.
For frequencies, it is identified that they are important factors for the
measurement of market share by airline as presented in the Quito-Guayaquil-
Quito route that registers the highest frequency in Latam's domestic operation,
with 52.3%, which allows it to dominate the domestic market. Avianca airline
appears in second place in relation to the number of routes operated in the
Financial education in centennials: evidence from students of public and private educational institutions in the city of
Loja, Ecuador
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domestic market, differentiating itself from Latam, prioritizing the operation to
Manta airport over Cuenca airport.
For Aeroregional airline, it is evident that its domestic operation is much smaller
than the two previous ones and that it operates with airports of lower demand
in the market, such as Loja, Santa Rosa and Francisco de Orellana, the first being
the one that obtained the highest number of operations by this airline with
60.9%. In the same way, for Equair airline it shows that from its initial operations
in 2022, presents a greater participation in the domestic market in relation to
Aeroregional, which began operating in 2018. In addition, its reduced domestic
participation is justified, just like Aeroregional airline, because its market is
composed of routes with higher demand, such as those of Guayaquil, Baltra and
San Cristóbal airports.
Finally, relating Ecuador's planning zones to domestic operations, it can be
identified that zone 9, which includes Quito airport, zone 8 with Guayaquil
airport, and zone 5 with Baltra and San Cristóbal airports, concentrate the
highest frequency operation due to the number of airlines serving these routes.
Unlike zones 1 and 3, which do not operate due to market reorganization
..........................................................................................................
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