Financial literacy and financial well-being of rural farmers: Does financial inclusion matter?

Financial literacy empowers individuals to make better financial decisions to stabilize their financial well-being while positively contributing to the economy. This study examined the link between financial literacy and financial well-being and added the mediating effect of financial inclusion among Zimbabwean farmers in three major districts in two provinces. This study utilized a questionnaire survey to retrieve answers from 526 Zimbabwean farmers recruited via convenience sampling. The partial least squares-structural equation modelling (PLS-SEM) was used to examine the information. The study’s outcome revealed that financial inclusion and literacy significantly impact farmers’ financial well-being. The study showed that financial inclusion plays a complementary mediating role in the connection between financial literacy and financial well-being. Our study suggests that financial literacy policies be implemented alongside programs and strategies to promote inclusive finance to enhance farmers’ financial well-being and sustainability. In addition, financial institutions should base their services on strengthening financial education programs to enhance the financial behaviors of farmers. The novelty of our manuscript lies in using PLS-SEM approach as a method, the participants being farmers, a population with limited literature in finance. Also, the study is the first to assess the mediating role of financial inclusion on the financial well-being of Zimbabwean farmers.