Financial Planning and Financial Well-Being of Informal Sector Workers in Central Region of Ghana: The Moderating and Mediating Role of Financial Literacy

This research sought to find the nexus between financial literacy (FL) and financial planning (FP), FL and financial well-being (FW), and FP and FW of informal sector workers in Ghana focusing on Cape Coast and Elmina, which are towns noted for their contribution to the economy through informal working activities. The study employed quantitative method, where primary data were obtained by serving questionnaires from January 2024 to April 2024, spanning 4 months. A total of 408 responses were garnered. Path analysis was performed by the use of Partial Least Squares-Structural Equation Modelling (PLS-SEM). From the analysis, the study found a positive significant relationship between FL and FP, FL and FW, and FP and FW of informal sector workers in Cape Coast and Elmina. The study also found that FP mediates the relationship between FL and FW. These imply that if informal sector workers become financially literate and plan more financially, it will help enhance their FW. Consequently, we recommend that policymakers, financial institutions, and the government promote FL and FP of the informal sector workers and also formulate and intensify policies that will directly benefit the underprivileged in society such as the informal sector workers. The study contributes to the attainment of SDGs on poverty reduction and economic inequalities.