Financial education and capacity building for the well-being of vulnerable families in Montería, Colombia

Abstract

Introduction: Families living in vulnerable conditions face economic constraints and a lack of financial knowledge, which can hinder proper resource management and increase the likelihood of facing adverse situations. In this regard, financial education is crucial for enabling more efficient management of family finances. This article aims to analyze how financial education contributes to developing the decision-making skills needed to foster the well-being of vulnerable families in Montería, Colombia. Materials and Methods: The study employs a qualitative approach using an inductive method and convenience sampling of 30 households that are vulnerable in economic, social, and educational terms. Data collection involved a review of documents from high-prestige indexed journals and semi-structured interviews with heads of households. Results: The findings reveal difficulties among vulnerable families regarding the management of available income, low levels of financial literacy, an inability to save, and limitations in meeting basic needs. They also face challenges such as economic instability, rising living costs, unemployment, informal employment, and restricted access to the formal financial system. Discussion: These findings provide a basis for proposing a training program that incorporates key elements to strengthen financial competencies, integrating concepts such as family budgeting, financial planning, money management, saving and investment, technological processes, decision-making, entrepreneurship, retirement planning, and strategies for crisis situations. Conclusions: Finally, the study suggests that strengthening the financial capabilities of these vulnerable families can contribute to effective resource management, informed and responsible decision-making, improved family well-being, and the creation of a more prosperous economic future.