Impact of Financial Well-Being, Financial Literacy, and Country Economic Situation with Mediating Effect of COVID-19

Abstract

Financial Inclusion is an essential element of social inclusion, and it’s especially helpful in eliminating poverty and income inequality by allowing disadvantaged people to advance. Steam of this study has investigated the country's financial well-being, financial literacy, and economic situation with the mediating effect of the corona virus-19 outbreak. However, the little research conducted on COVID-19 mediates financial well-being, financial literacy, and economic condition. To illustrate this domain, we developed a framework based on existing literature on financial-wellbeing, financial literacy, economic situation, and COVID-19. The surveys were conducted on 870 respondents in Pakistan via Google form, Likert scale was used. While the structural equation model (SEM) was used to check the hypotheses. This research contributes that financially well being and financially literate individuals positively influenced pandemics, such as the COVID-19 outbreak. In contrast, it has a negative impact on the country's economic situation. Further, we found that financial well-being has a negative and significant relationship with the economic condition. Meanwhile, financial literacy has a significant and positive impact on the economic situation. In addition, research reveals the role of financial well-being and financial literacy as a strong predictor to survive the pandemic outbreak. The finding provides the implications for economic, educational, and policymaker for providing the financial knowledge and improving the financial well-being of nation generation.