Financial Behavior and Degrees of Financial Inclusion

AbstractWe explore nationwide data from the 2018 National Inclusion Survey of Mexico to examine the association between four degrees of financial inclusion and five short- and long-term financial behaviors. Results show that individuals who are financially included tend to report better financial behavior, but the relationship depends on the degree of financial inclusion and the specific behavior at hand. Financial inclusion is related to positive financial behaviors only when the household reports holding more than one financial product and regularly using them. We found no behavioral differences between unbanked households and those with accounts opened by a third party. JEL classification D14, G21, O16