Financial Well-Being Index in México

Abstract

This paper aims to construct a financial well-being index and analyze its determinants among adults in Mexico. It employs multiple correspondence analysis, multiple linear regression, and ordinal logistic models created over data from the National Survey on Financial Inclusion 2018. The results confirm that the amount of income and its regularity, education, being a man, married, retired, student or worker contribute to elevating financial well-being. This work adds to the body of knowledge of subjective well-being, a topic slightly studied in Mexico, thus, its originality. The lack of data regarding financial satisfaction or stress is among its main limitations. Nevertheless, our findings can help implement policies and design financial products that propitiate financial well-being and improve the quality of life in Mexico and emerging nations with comparable socioeconomic conditions.