EFFECT OF FINANCIAL LITERACY ON FINANCIAL INCLUSION

Abstract

This study explores the impact of financial literacy on financial inclusion, focusing on how various factors influence individuals' ability to access and use financial services. Key independent variables include social capital, cognition, financial self-efficacy, economic stability, and information technology, while financial inclusion serves as the dependent variable. The research investigates how financial literacy enhances individuals' understanding and use of formal financial systems, particularly in promoting economic participation and reducing financial exclusion. The findings provide insights into the role of financial education in fostering greater inclusion and the importance of enhancing key enablers to drive financial participation.