THE ROAD TO ECONOMIC EMPOWERMENT: ENHANCING FINANCIAL LITERACY

Povzetek

The study investigates the complex connections between different aspects of financial literacy and how they affect financial behaviour and access to financial resources, specifically in the context of changing economic environment during the fourth industrial revolution. The study employs Structural Equation Modelling (SEM) to propose that financial confidence has a positive impact on financial inclusion (H1), financial knowledge has a direct effect on financial behaviour (H2), and financial behaviour acts as a mediator between financial knowledge and access to financial resources (H3). The results indicate strong positive correlations between financial confidence and financial inclusion (β = 0.291, p < 0.05), financial knowledge level and financial behaviour (β = 0.093, p < 0.05), and financial behaviour and access to financial resources (β = 0.673, p < 0.001). The study's measurement model and validity evaluations indicate a high degree of sampling adequacy (KMO = 0.871) and strong factor loadings, which ensure the correctness and reliability of the constructs. The discriminant validity study has shown that the financial components are different from each other. Additionally, the model fit indices suggest that the sample data is well represented (χ² = 218.797, p = 0.068, CFI = 0.988, RMSEA = 0.025). This study provides a thorough comprehension of the dynamics of financial literacy, delivering valuable insights for policymakers, entrepreneurs, and academics who are navigating economic environment throughout the Industry 4.0 era.