A qualitative fuzzy comparative analysis of patterns and relationships in financial variables: Financial knowledge and skills approach

This study comparatively analyzed the variables that shape financial knowledge and skills using principal component analysis (PCA) and qualitative comparative fuzzy set analysis (fsQCA). Using data from 1,837 adults in Bogotá and Cundinamarca, Colombia, it identified key factors such as the time value of money, profitability, financial regulations, interest rates, savings strategies, retirement planning, insurance, access to credit, and investment opportunities. These variables are essential for improving financial education and capabilities.The combined approach of PCA and fsQCA revealed significant patterns and complex relationships between variables, highlighting how their combinations contribute to more effective financial decisions and outcomes. This methodological framework provides a comprehensive understanding of the determinants of financial knowledge and skills, grounding the interaction between financial education and practical competencies.The findings have practical implications, suggesting the design of educational programs that transcend theoretical knowledge and strengthen real financial management skills. These programs can promote financial independence and economic well-being, responding to the specific needs of different social and economic contexts.