Analysis of the relationship between the level of financial education and behavioral bias for Brazilian university students

Abstract

The study aims to understand how financial education influences behavioral biases framing, mental accounting and loss aversion through the relationship of these approaches. Therefore, a questionnaire was developed involving the identification of financial education and the three behavioral biases. The research instrument was applied in three sample groups of students (totaling 568 students) graduated from the Federal University of Santa Maria, previously classified as high, intermediate and low level of financial education. Through an individual examination for all respondents of the sample, carried out through correspondence analysis, it was detected that the presence of behavioral bias is verified in greater quantity in the low-level financial education group. It is understood that individuals with a higher level of financial education are less likely to be influenced by irrational issues in the decision-making process.