Work

Addressing financial biases in university undergraduates: Unveiling connections with knowledge, behaviours and attitudes

Year: 2025

Type: article

Abstract: PURPOSE: This study investigates how financial knowledge, behaviours, and attitudes shape the prevalence of financial biases among Economics students at the University of Santiago de Compostela. METHODOLOGY: Based on survey data from 403 first- and fourth-year students, a composite bias index-covering overconfidence, gambler's fallacy, and herd behaviour-is constructed using the Benefit of the Doubt method. Truncated regressions explore the influence of financial capability. FINDINGS: Results show attitudinal factors explain biases better than knowledge. Surprisingly, behaviours such as long-term planning and fraud avoidance increase susceptibility to biases. These findings highlight the complexity of financial decision-making and the need for emotionally aware, bias-targeted financial education. VALUE: This paper introduces a novel approach by constructing multiple financial bias indices and calling for hands-on, behaviour-focused financial education.

Source: PLoS ONE

DOI: 10.1371/journal.pone.0336274

Authors: Celia López-Penabad, Marcos Álvarez-Espiño, Leandro Benito-Torres

Institution: Universidade de Santiago de Compostela

Language: English

Topic: Financial Literacy, Pension, Retirement Analysis

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Quality education

Open Access status: gold

Estimated APC paid: $2,382