Assessing financial capability among people with disabilities

Abstract

Summary People with disabilities are five times more likely to experience poverty than the general population, yet very little is known about how financial capability can help increase their financial well-being. Using secondary data from the 2015 National Financial Capabilities Study, this study used path analysis to test Sherraden’s theoretical model of building financial capability on a nationally representative sample of people with disabilities. This included assessing how variables of ability (i.e., financial literacy) and variables of opportunity (i.e., financial inclusion) combine to improve one’s financial well-being and stability. Findings Multiple fit indices suggested that the data fit the path model well: χ2 = 37.73 (14), p = .001, RMSEA = 0.04 (90% CI: 0.03–0.05), TLI = 0.97, CFI = 0.99. Findings indicate that financial literacy and financial access both impact the financial well-being in this sample of people with disabilities ( N = 1232). Also, access to financial products moderated financial literacy to increase its impact. This study empirically substantiated the selected financial capability framework. Applications Implications of this study are targeted toward social work researchers and practitioners. There have been very few empirical studies on building financial capability among people with disabilities, so this article serves as a foundation for much needed research in this area while also filling a gap in the extant literature. Additionally, disability case managers will find this research useful, as it provides evidence for practical steps they can take to help their clients work toward achieving financial well-being.

Financial capability: a systematic conceptual review, extension and synthesis

“…Financial capability, financial advice, financial anxiety and electronic payment system usage have a direct positive effect on an individual’s financial satisfaction (Khan and Akhtar, 2020). Financial literacy and financial access both impact financial well-being of people with disabilities (McGarity et al. , 2020).…”

“…Sociodemographic factors are associated with the financial capability of survivors of human trafficking (Okech et al, 2018). Gender moderates associations among financial literacy, Birkenmaier and Fu (2020), Henager and Wilmarth (2018), Huang et al (2015a), Huang et al (2016), Johnson and Lamdin (2015), Khan and Akhtar (2020), Luo and Zeng (2020), Luo et al (2021), McGarity et al (2020), Montalto et al (2019, Mouna and Jarboui (2015), Ponchio et al (2019), Ranta and Salmela-Aro (2018), Ranta et al (2020), Reyers (2019), Riitsalu and Murakas (2019), Robb et al (2019), Sabri and Zakaria (2015), Seay et al (2015), Tharp et al (2020), von Stumm et al (2013, Xiao and O'Neil (2018b) A review of financial capability money attitudes, financial strains and financial capability in Malaysia (Sabri et al, 2017). General domain identity processes affect financial capabilities both directly and indirectly among Lithuanian students (Vosylis et al, 2020).…”

“…Financial capability, financial advice, financial anxiety and electronic payment system usage have a direct positive effect on an individual's financial satisfaction (Khan and Akhtar, 2020). Financial literacy and financial access both impact financial well-being of people with disabilities (McGarity et al, 2020). Factors such as knowledge, attitude and control are associated with financial satisfaction via one or more positive financial behaviors (Luo and Zeng, 2020).…”

La relación causa-efecto entre exclusión/inclusión social y financiera. Una aproximación teórica

“…En la relación existente entre exclusión financiera y social, se destaca lo problemático que puede llegar a ser que las personas no logren acceder a créditos o servicios financieros en economías capitalistas (Leyshon y Thrift, 1995 : 313), más aún cuando no se cuenta con los ingresos y con la educación general o financiera que les permita a colectivos de bajos ingresos acceder a estos servicios financieros, teniendo en cuenta la relevancia que tiene el sector bancario en el desarrollo de las economías (Iqbal y Sami, 2017;Nanda y Samanta, 2018;McGarity et al, 2020). Wilson (2012) profundiza en la relación directa entre la vulnerabilidad y la exclusión financiera, refiriéndose a que, en el caso del contexto occidental y liberal, quienes viven la exclusión financiera son vulnerables a las presiones financieras, al incremento del coste de vida y a la exclusión social.…”

“…Los estudios empíricos identificados con el análisis bibliométrico realizado concluyen que existen una serie de variables o factores clave que desde la inclusión financiera favorecen la inclusión social. Entre estos factores se pueden destacar principalmente la educación financiera (Devlin, 2009;Nanda y Samanta, 2018;McGarity et al, 2020;Kaur y Kapuria, 2020), las tecnologías bancarias (Okonji y Ogwezzy, 2018;Kemal, 2019), la proximidad bancaria (Bhanot et al, 2012) y las finanzas sostenibles o éticas (Fuller y Jonas, 2002;Affleck y Mellor, 2006).…”