The impact of financial literacy on financial inclusion for financial well-being of youth: evidence from Jordan

Abstract This study examined the impact of financial literacy on financial inclusion and well-being among Jordanian youth. Using a multidimensional approach, the research investigated the effects of knowledge of financial products and services, consumer rights and protections, and financial decision-making skills on financial outcomes. The target population comprised Jordanian youth aged 18–30, with a sample size of 440 participants. A quantitative, cross-sectional survey design was employed, utilizing PLS-SEM for data analysis. Results revealed significant positive relationships between all dimensions of financial literacy and both financial inclusion and well-being. Consumer rights and protections emerged as the strongest predictor of financial outcomes, followed by knowledge of financial products and services, while financial decision-making skills showed relatively weaker effects. The findings have implications for policymakers, financial institutions, and educators, highlighting the need for comprehensive financial literacy programs that address multiple dimensions, particularly emphasizing consumer rights and protections. This research contributes to the literature by providing empirical evidence from a developing country context and supporting the conceptualization of financial literacy as a multidimensional construct. The study's focus on youth in Jordan offers valuable insights for promoting financial inclusion and well-being in similar demographic and economic contexts.