The Influence of Financial Literacy on the Financial Well-being of Fishermen with Financial Inclusion as a Mediating Variable in Pasie Nan Tigo Fisherman Village, Padang City

Abstract

Financial literacy plays a crucial role in individuals' ability to manage their finances, while financial inclusion reflects the extent to which individuals can access and use formal financial services. In the context of fishermen, both factors are essential to understanding their financial well-being. This research aims to explore the impact of financial literacy on financial well-being and financial inclusion among fishermen, as well as to examine the relationship between financial inclusion and financial well-being. A quantitative approach was used, employing a survey method with fishermen as the respondents. Data was gathered through a structured questionnaire and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The research found that financial literacy significantly and positively influences fishermen’s financial well-being. Additionally, financial literacy was positively associated with financial inclusion, indicating that greater financial literacy increases the likelihood of accessing and using formal financial services. However, an interesting finding was that financial inclusion negatively affects financial well-being, suggesting that access to financial services alone does not necessarily lead to improved financial outcomes without proper financial management skills. The results highlight the importance of enhancing financial literacy to improve financial outcomes for fishermen. It also suggests that promoting financial inclusion should be coupled with education on effective financial management to ensure positive impacts on financial well-being.