Demographic factors and financial literacy of youth with disabilities: the moderating role of residential area

Abstract

Youth with disabilities face considerable challenges in improving family prosperity which is closely related to financial literacy. This study aimed to analyse the effect of education, work, income, gender, status and age on financial literacy. Subsequently, an examination of the moderating effect of residential area on the relationship between the demographic factors and financial literacy was implemented. By using snowball sampling, this study utilised 150 youth with disabilities in West Sumatera. From the interview and survey, the results revealed that the financial literacy of the youth with disabilities in West Sumatera is at a sufficient level (72.8%). Educational level and work had a positive effect on financial literacy, while income, gender, status and age had no significant effect. Furthermore, residential area could only moderate the relationship between education and work with financial literacy. For this reason, the government must also pay more attention to people with disabilities who live in remote, rural, out-of-town and suburban areas, not only in downtown areas. The government should establish a pro-disability policy, whereby every institution should  employ a minimum of 1 person with a disability.