Financial Literacy as a Key to Financial Inclusion: A Multidimensional Analysis and Insights from Below Poverty Line Households
Abstract
This study examined the multifaceted effects of financial literacy on the inclusion of economically disadvantaged populations. Structural equation modelling with smart partial least squares (PLS) was employed to analyze the effects of financial literacy on financial inclusion. This study reveals that financial literacy exerts a multi-dimensional influence on households’ financial inclusion below the poverty threshold. Additionally, it indicates that improved access to financial services is correlated with increased usage of these resources. This study shows that access to financial services and financial literacy play a significant role in increasing households’ use of financial products, thereby promoting greater financial inclusion.
Fields of Study & Subjects
Financial Literacy
Pension
Retirement Analysis
Microfinance and Financial Inclusion
Housing
Finance
and Neoliberalism
Publication details
- Journal / source
- Vikalpa The Journal for Decision Makers
- Publisher
- SAGE Publications
- Volume
- 51
- Issue
- 3
- Pages
- 216-232
- Publication date
- 29 April 2026
- Language
- EN