Financial literacy, financial planning, and financial well-being of informal sector workers in Ghana: Implications for SDG 1, SDG 4, SDG 8, and SDG 10

This study examines the nexus between financial literacy (FL) and financial planning (FP); FL and financial well-being (FW); and FP and FW of informal sector workers in Ghana. By collecting 408 responses of primary data from January 2024 to April 2024 and estimating path analysis, using Partial Least Squares-Structural Equation Model (PLS-SEM), the study found a significant positive relationship between FL and FP; FL and FW; and FP and FW of informal sector workers in Cape Coast and Elmina. The study also found that FP mediates the relationship between FL and FW. The results suggest that if informal sector workers become financially literate and plan more financially, it will help enhance their FW. Consequently, I recommend that policymakers, financial institutions, and the government promote FL and FP of the informal sector workers and also formulate and intensify policies that will directly benefit the underprivileged in society, such as the informal sector workers. Altogether, this study contributes to the attainment of SDG 1 (No Poverty), SDG 4 (Quality Education), SDG 8 (Decent Work and Economic Growth), and SDG 10 (Reduced Inequalities), all of which are directly supported by the study’s variables and empirical findings.