Financial literacy awareness and practices among village savings groups in Cambodia

Purpose: This study aims to assess the financial literacy awareness and practices of village savings group members in rural Cambodia, focusing on their earning, saving, spending, borrowing, insurance coverage, financial concepts awareness, and use of mobile applications. Methodology: The study employed a quantitative research approach, surveying 109 savings group members from 24 villages in Cambodia's Kampot and Kampong Thom provinces using a structured questionnaire administered through face-to-face interviews. The collected data were then analyzed using descriptive statistics. Findings: The study identified a relatively strong financial literacy among the respondents, indicating the potential for further capacity building. However, significant barriers to financial inclusion and access to formal financial services were revealed. The study also highlighted gaps in insurance coverage, particularly for agricultural and health risks, and limited use of mobile financial applications. Implications: The findings highlight the urgent need for targeted interventions to improve access to formal financial services, strengthen insurance product uptake, and address challenges in using digital financial tools in rural Cambodia. Originality: This study offers detailed micro-level insights into the financial literacy, practices, and challenges of village savings group members, which is essential for developing effective strategies to enhance financial inclusion. Limitations and future research: The findings may not be generalizable to other contexts, as the study was conducted within a specific rural community. Future research could explore financial practices in different geographical and socioeconomic settings and delve into the root causes of barriers to inform targeted interventions and policy recommendations.