Financial Literacy of Women Street Vendors: A Micro-Level Study

Abstract

Purpose: This study examines the financial literacy levels and financial behaviour patterns of women street vendors, with a focus on identifying the socio-economic determinants that influence their financial knowledge and practices.

Methodology: A cross-sectional descriptive study was conducted among 103 women street vendors using a structured questionnaire. A composite Financial Literacy Score (range 0–8) was constructed from eight behavioural indicators. Data were analysed using Chi-Square tests, Mann-Whitney U tests, Kruskal-Wallis H tests, Fisher’s Exact Test, and Spearman rank correlations at the 5% significance level.

Findings: Education emerged as the strongest predictor of financial literacy (ρ = 0.47, p < 0.001), with scores rising from 3.0 (no formal education) to 7.3 (higher secondary/graduate). Women who attended financial literacy programmes were 10 times more likely to prepare business budgets (OR = 10.20, p = 0.0002). Digital payment adoption was significantly associated with education (p = 0.005), and government scheme awareness was strongly linked to vendor formalisation (p = 0.0002). Notably, daily income and vending experience did not significantly influence financial literacy.

Originality: This study provides empirical evidence from an under-researched population at the intersection of gender, informality, and financial inclusion. The construction of a composite financial literacy score and the finding that experience alone does not improve financial knowledge offer novel contributions to the literature on financial literacy in the informal economy.