From Financial Inclusion to Financial Well-being: Exploring the Role of Financial Behavior and Financial Security Among Informal Workers in Pakistan

Fatima Ghaffar; Muhammad Adeel Manzoor; Muhammad Hafeez

doi:10.54938/ijemd-ss.2026.05.5.866

Authors

Fatima Ghaffar Institute of Business Management Sciences (IBMS), University of Agriculture Faisalabad, Pakistan
Muhammad Adeel Manzoor U MicroFinance bank limited, PirMahal branch, Pakistan
Muhammad Hafeez Institute of Business Management Sciences (IBMS), University of Agriculture Faisalabad, Pakistan

DOI:

https://doi.org/10.54938/ijemd-ss.2026.05.5.866

Keywords:

Financial inclusion, Financial well-being, Financial behavior, Financial security, Informal sector workers

Abstract

Using Partial Least Squares Structural Equation Modeling (PLS-SEM), this paper explores the impact of financial inclusion on financial well-being through financial behavior and how financial security acts as a moderator in the relationship between financial inclusion and financial behavior. Based on data from 409 workers in the informal sector in Toba Tek Singh, Pakistan. We observed that both financial inclusion and financial security directly generate personal financial behaviors, whose consequences increase overall well-being. The data demonstrate that financial security is a positive moderator; it boosts the beneficial effect of financial inclusion on individual behaviors and contributes to the financial well-being of workers. The findings of this study will guide policymakers and professionals in educating informal sector workers to improve their financial well-being.

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