Abstract
Measuring financial capabilities among young people poses a challenge for scholars. In this study, we developed a set of ten scales to assess various behaviors, attitudes, and knowledge, allowing for a comprehensive examination of the construct. We designed a pool of items and invited 746 participants, aged 16 to 29, who were divided into two groups for studying the psychometric properties of the tests. The first group underwent an Exploratory Factor Analysis, while the second group underwent a Confirmatory Factor Analysis. Through these analyses, we identified five dimensions of financial behaviors, four dimensions of financial attitudes, and one dimension of knowledge or financial literacy. The scales were combined to measure two financial capabilities: Financial Saving Capability and Responsible Debt Management Capability. Furthermore, we identified distinct profiles of young people associated with each proposed financial capability. Finally, we offer a conceptual discussion of the financial capabilities construct, present scales with reliable and valid measurements, and propose avenues for future research.
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