Self-efficacy as a mediator of Financial Literacy and Financial Inclusion among Working Women in Uganda

Abstract

Several scholarly works tend to agree that financial literacy matters for financial inclusion. Little, however, is known about the mediating role of self-efficacy on the association between financial literacy and financial inclusion in the female demographic. This study sought to close that gap in knowledge among working women in Uganda. The study used a correlational cross-sectional design. A sample size of 384 was derived from a population of 327,930 working women from all the five divisions of Kampala district. A structured questionnaire was used to obtain primary data. Sobel test and medgraph were utilised to evaluate the mediation study hypothesis. The results showed that financial literacy is a significantly positive direct and indirect predictor of financial inclusion with self-efficacy as a positive and significant mediator. Sobel test is significant with results showing that financial literacy is both a positive and significant direct and indirect predictor of financial inclusion with self-efficacy as a positive and significant mediator. Findings from this inquiry underline the critical importance of financial literacy and self-efficacy in promoting financial inclusion among working women in a developing country, Uganda. Government of Uganda together with other stakeholders such as associations of financial institutions, donors and training institutions should deliberately design policies that will enable working women to be financially literate focusing on financial attitudes, skills and behaviour. This will enhance the women’s belief in their ability to take advantage of the financial services that are available in the market. 

Keywords: Financial literacy, Self-efficacy, Financial Inclusion, working women