Financial Education, Behavior, and Credit Use in Emerging Economies: A Structural Equation Model from Peru

Abstract

This study examines how financial knowledge, behavior, and attitude influence the use of consumer credit and credit cards in Peru, a country characterized by low financial inclusion and high informality of the labor force. A survey was conducted among 269 banking clients and the data was analyzed using factor analysis and structural equation modeling (SEM). The results show that financial attitude has the strongest positive influence on credit use, whereas financial knowledge is negatively associated with both credit card use and financial behavior, revealing a gap between what people know and what they actually do. Beyond describing levels of financial literacy, the study highlights the educational value of these findings. The results suggest that financial education programs should go beyond teaching technical concepts and incorporate behavioral and attitudinal components that strengthen planning, self-control, and responsible credit decision-making. In contexts such as Peru, where access to training remains unequal, promoting practical and context-sensitive educational strategies can help reduce indebtedness and improve the financial well-being of households.

Received: 17 August 2025 / Accepted: 21 October 2025 / Published: 05 November 2025