Empowering Women: Financial Literacy and Behavior of Working Women in Kathmandu Valley

Abstract

Financial empowerment and financial wellness require that people be financially literate, especially the working women in developing economies such as Nepal. Although the women participation in the workforce is rising, women in Kathmandu Valley have their share of problems of lack of financial literacy, gender stereotypes, and unequal opportunities, which serves to shape their financial attitudes, literacy, and behavior. Even though previous research indicates that financial attitude and knowledge are the determinants of financial literacy, and that literacy determines financial behavior, the exact area of research that is limited is the working women. This paper focuses on the financial literacy and behavior of working Kathmandu Valley women, how financial attitude and knowledge impact on financial literacy and what issues are essential in influencing women in their financial decision-making. The quantitative explanatory research design was used. Convenience sampling, which involved a survey of 412 working women using structured questionnaires administered using KOBO Toolbox was used. Reliability and validity of the data were checked and relations between financial attitude, financial knowledge, financial literacy and financial behavior were analyzed by means of Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings indicate that young, unmarried women in service industries particularly the highly educated ones are more financially literate. Financial attitude and knowledge are the key determinants of financial literacy, which indirectly affects financial behavior. Key obstacles are gender stereotypes, low representation in male dominated environments, and lack of access of both financial resources. The paper concludes that financial literacy and attitude of working women are the key indicators of financial literacy, and financial literacy is the key factor of financial behavior. To empower women financially in Kathmandu Valley, financial education, equal opportunity, mentorship, and access to resources should be enhanced.