Financial education is more precious than money – examining the role of financial literacy in enhancing financial wellbeing among Saudi women

The study explores the role of financial literacy, financial socialisation, and certain demographic characteristics (such as income, education, father’s education and mother’s education) in enhancing financial wellbeing through developing/promoting financial self-efficacy and financial coping behaviours, among Saudi women. There is sparse research evidence available in the literature that examines the levels of financial literacy among Saudi women and how it contributes to their financial wellbeing and the related financial behaviours, this paper therefore, provides important evidence to bridge this important research gap. Based on PLS-based path modelling performed over a set of 1,338 responses from Saudi women, we found a significant positive effect of both the antecedents (i.e., financial literacy and the financial socialisation) on financial wellbeing mediated through financial self-efficacy and (financial) coping behaviours. Similarly, demographic characteristics including women respondents’ income, education, father’s education, and mother’s education are partially positively related to financial self-efficacy as well as the financial coping behaviour. However, demographic characteristics were not seen to be significantly related to financial wellbeing. Besides bridging significant research gaps in the literature, this study provides practical implications for Saudi women to enhance their financial wellbeing through enhancing financial literacy and financial socialisation.