The use of formal financial services has been associated with increased financial wellbeing and overall economic growth. Efforts to increase financial inclusion have emphasized financial literacy provided through formal training and education without due recognition that people's financial behaviors and practices may be motivated by social interactions. The current study examines the moderating effects of social learning on the relationship between financial literacy and formal financial services usage within a developing country context. Survey data collected from a sample of 351 adults in Kampala, Uganda, was analyzed using Pearson correlation coefficients, hierarchical regression, and ModGraph. Findings reveal significant positive relationships between financial literacy, social learning, and usage of formal financial services. Results indicate that social learning moderates the relationship between financial literacy and financial services usage among people in Kampala. The study finds peers and friends to be critical socializing agents with a significant influence on formal financial services usage. Beyond the promotion of financial literacy, financial inclusion initiatives should recognize the effects of social learning to increase the use of formal financial services in countries such as Uganda. The study integrates aspects of the social learning theory into the financial services domain hitherto dominated by finance and economic models.

Financial education aims to promote financial inclusion by increasing understanding and use of formal financial services. Despite such training, participation in informal financial practices remains high relative to formal ones in countries like Uganda. A cross-sectional sample survey of economically active urban financial service users is used to test whether financial education through formal training is associated with financial literacy (FL) and FL is associated with increased use of financial services, especially formal ones. The findings indicate that formal financial training is significantly associated with FL, and that higher FL is associated with higher use of both formal and informal financial services. The unexpectedly strong association of the use of informal financial services with financial literacy suggests that informal financial services may have a more complementary role than a simple model of financial formalization would imply. The study suggests that promoting informal financial services may be more efficient in raising financial literacy and inclusion than financial training.

The study investigated the direct effects of financial literacy (knowledge, skills, and attitudes) on financial preparedness for retirement and the moderating effect of age among the small and medium enterprises in Uganda. Primary data was collected from a sample of n = 380 selected from the SME workforce. Descriptive analysis was run on SPSS, while validity and reliability of the measurement items yielded satisfactory composite reliability scores and average variance explained (AVE) scores for all items. Structural equation modelling (SEM) was used to test the hypotheses and multi-group analysis conducted to test for the moderating effect of age on the relationship between financial literacy and retirement preparedness. The results revealed that knowledge and skills were significant predictors of retirement preparedness. However, ‘attitude' was not a significant predictor, and age had no moderating effect on the relationship between the study variables. These findings present practical implications for policymakers and financial educators in a developing country context.

The study presents a comparative analysis of objectively measured and subjectively measured financial literacy in Kampala, Uganda. Financial literacy levels were measured and compared by the demographic characteristics of age, gender, employment status, level of education, and access to financial education. Survey data from a sample of n = 351 adults proportionately selected the five administrative divisions of Kampala in Uganda was analyzed using descriptive statistics, Exploratory Factor Analysis (EFA), and the Analysis of Variance (ANOVA). The findings reveal a high level of self-assessed financial literacy and a low level of objectively measured financial literacy among respondents. On the overall, respondents have a limited understanding of basic concepts of interest rate, inflation, and securities, thus suggesting overestimated levels of financial literacy among people in Kampala. The study finds the overestimation problem more prominent among younger people, and those employed in the formal sector. Further, financial literacy (both objectively and subjectively measured) is higher among men than women; and also higher among the respondents that have had prior financial education. Our findings have vital implications for policy and practice: First, is that financial education is a useful tool in promoting financial literacy. Second, financial education programs in Uganda need to proactively target women, persons aged 35 yrs and above, and self-employed persons operating in the informal sector. Third, there is an urgent need for financial educators to promote awareness on the need for financial education, especially among segments with overestimated levels of financial literacy.

In social economic contexts characterized by young populations largely employed in the small and medium enterprise informal sector, retirement preparedness is an individual responsibility. This chapter explores the effects of age and financial literacy (knowledge, skills, attitudes, and behaviors) on retirement preparedness (RP). Primary data collected from a sample of n = 380 small and medium enterprise (SME) workers in Uganda is analyzed using SPSS. Measurement items are tested for validity and reliability to yield satisfactory composite reliability scores and average variance explained (AVE). Structural equation modelling (SEM) is used to test the hypotheses. The results reveal that specific behaviors, knowledge, and skills, but not attitudes, are significant predictors of RP. Also, that age does not significantly moderate the relationship between financial literacy and retirement preparedness. The chapter outlines practical implications for policymakers and financial educators in a developing country context.