An empirical exploration of women’s financial literacy and empowerment: A policymaking and regulatory context

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Abstract

Despite growing awareness of financial inclusion, many women continue to face challenges in managing personal finances effectively, making financial literacy essential for sound decision-making. As emphasized by Lusardi and Mitchell (2014), financial literacy plays a crucial role in shaping individuals’ financial behavior and long-term economic well-being. This study investigates the impact of financial literacy among women in Saudi Arabia, a context that remains underexplored in existing literature. Using convenience sampling, data were collected and analyzed using statistical methods to test the proposed hypotheses. The results demonstrate that women’s financial literacy is positively associated with their level of education, income, and financial understanding. Moreover, women in Saudi Arabia exhibit higher financial awareness than men, highlighting the need for targeted financial education initiatives. The findings also indicate that cultural and social factors play an important role in shaping women’s financial behavior and decision-making. These findings align with the Organisation for Economic Co-operation and Development International Network on Financial Education (OECD/INFE) (2016) and the OECD/INFE (2023), International Survey of Adult Financial Literacy, which stresses the importance of developing comprehensive financial education strategies to enhance inclusion and empowerment. The study concludes that improving women’s financial literacy is essential for promoting gender equality and supporting sustainable economic growth.

Keywords: Financial Literacy, Financial Knowledge, Women, Decision-Making, Saudi Arabia

Authors’ individual contribution: Conceptualization — S.A.A. and M.S.A.; Methodology — M.S.A. and Y.A.; Software — Y.A.; Formal Analysis — Y.A.; Investigation — Y.A.; Data Curation — S.A.A. and M.S.A.; Writing — Original Draft — Y.A.; Writing — Review & Editing — S.A.A. and M.S.A.; Project Administration — M.S.A.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: G11, G51, G53

Received: 02.07.2025
Revised: 25.10.2025; 09.02.2026
Accepted: 18.02.2026
Published online: 20.02.2026

How to cite this paper: Alokley, S. A., Albarrak, M. S., & Ansari, Y. (2026). An empirical exploration of women’s financial literacy and empowerment: A policymaking and regulatory context. Journal of Governance and Regulation, 15(2), 8–23. https://doi.org/10.22495/jgrv15i2art1