The Impact of Financial Education on Financial Inclusion

Abstract

Financial education provides necessary knowledge about official financial products and services, creates confidence in actively access to products and services available on the official market, and limits the expansion of informal financial markets, thereby directly promoting financial inclusion in each country. To assess the impact of financial education on financial inclusion, this study uses the two independent samples t-test, principal component analysis, and multi-regression methods with dataset of 77 countries. The results demonstrate that financial inclusion plays an important role in financial inclusion. The study provides a number of recommendations to the government to promote financial education and financial inclusion.