Mediating effect of self-control on financial literacy and savings behaviour of rural women entrepreneurs

Abstract

Background: Savings behaviour is crucial for any economic and investment activity. The ability of rural enterprises to save is difficult because of their ignorance of the benefits of savings, low-income levels and inability to commit personal savings, which falls to certain factors that include financial literacy (financial knowledge, financial attitude) and self-control.

Aim: The article aims to examine the mediating effect of self-control on financial literacy (financial knowledge, financial attitude) and savings behaviour of rural women entrepreneurs in Mokwa Local Government, Niger State, Nigeria.

Setting: The population comprised 340 rural women trained by the Department of Commerce on financial literacy applications in the 11 wards of Mokwa Local Government. A total of 175 respondents were identified using the Krejcie and Morgan sample size table.

Methods: Primary quantitative data were collected using structured questionnaires and analysed using partial least square (PLS) path modelling.

Results: The empirical results revealed that financial knowledge and financial attitude exerted a positive effect on the savings behaviour of rural women entrepreneurs.

Conclusion: The conclusion drawn from the study is that the financial literacy of rural women entrepreneurs is empirically related to how they save.

Contribution: Based on the research findings, the study recommends that government agencies supervising and coordinating the activities of entrepreneurs like SMEDAN and also financial institutions like Microfinance Banks should facilitate flexible, understandable and acceptable programmes that will enlighten rural entrepreneurs on the importance of savings for investment and the nation at large.