Colombia | Financial health shapes consumer welfare

Colombia | Financial health shapes consumer welfare

Abstract

The ability to cope with financial shocks from one's own resources is called financial vulnerability. It is measured as the period of time that individuals can survive by covering their needs if they lose their main source of income and without using credit.

Financial vulnerability shows an inverse relationship with financial health; if financial health is low, the probability of being highly vulnerable increases dramatically. If the level of education and/or financial literacy increases, the financial vulnerability decreases. People living in rural areas are more financially vulnerable than those living in urban areas. Women and younger people are at greater risk of being financially vulnerable.

Full content of the publication

Tags

Data Analysis Financial Health Financial Inclusion Financial Vulnerability Inequality Personal Finance

Authors

Alfonso Arellano

Senior Economist of the Financial System Unit at BBVA Research

Noelia Cámara

Principal Economist, Financial Systems Unit, BBVA Research

Additional Information

Date published

27/01/2020

Document Type

Research

Geographies

Colombia

Target

General

Pages

1

Source

BBVA Research

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