Financial Education: An Econometric Analysis of the Need for Training at Ecuadorian Universities

Financial education is a fundamental competency for responsible economic decision-making and individual financial well-being. In this context, this study aimed to conduct an econometric analysis of the influence of financial education on the perceived need to incorporate personal finance courses into Ecuadorian universities. The study adopted a quantitative, non-experimental, cross-sectional approach. Data were collected through a survey administered via Google Forms to 437 students from different degree programs at public and private universities in Quito, Ecuador. A financial literacy index was constructed based on knowledge of compound interest, inflation, risk, diversification, credit cards, and budgeting. The analysis included descriptive statistics, Cronbach's alpha, and OLS, Ordered Logit/Ordered Probit, and Binary Logit econometric models. The results revealed an upper-intermediate level of financial literacy among students, although gaps persisted in topics related to financial risk and inflation. A positive and statistically significant effect of the financial literacy index on support for including personal finance courses in higher education was also found. Furthermore, prior financial training and family financial education were associated with better financial habits and higher levels of economic knowledge. It is concluded that Ecuadorian universities should incorporate formal personal finance programs to strengthen financial competencies, promote responsible economic habits, and contribute to young people's financial well-being.