Impact of Financial Literacy on Food Security: A Mediating Role of Financial Management
DOI:
https://doi.org/10.32350.aar.61.03%20%20%20Keywords:
financial literacy, financial management, food security, household welfareAbstract
Food Security (FS) remains a critical challenge for many households in the developing economies, especially households facing increasing economic pressures and volatilities in price levels of goods and services. Financial Literacy (FL) has been recognized as a key determinant of household welfare which can influence the FS. This study aimed to examine the influence of FL on FS through the direct effect. The mediation analysis was used to identify whether Financial Management (FM) acts as a mechanism that coordinates the relationship between FL and FS. Using multi-stage cluster sampling method, primary data was collected from households through a structured survey in the Western Province of Sri Lanka. The data was analysed through Structural Equation Modelling (SEM). The findings revealed that FL has a significant positive influence on FM. This describes that individuals with higher Financial Knowledge (FK), Financial Attitude (FA), and financial behaviour are more capable of making sound financial decisions and managing their financial resources effectively. FM, in turn, maintains a significantly positive relationship with FS. Moreover, FL exterts a statistically significant direct effect on the FS. Mediation analysis confirmed that FM partially mediates the relationship between FL and FS. This represents that FL enhances the FS directly and conversely, relationship between FL and FS improved via FM practices. The findings emphasized the importance of integrating FL education with practical exposure towards FM skills, behaviours, and interventions to strengthen the household FS.
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Copyright (c) 2026 Mayuri Pradeepika Madhusanka, Shirantha Heenkenda, Damayanthi Bamunusinghe
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