Financial Literacy Metrics for Financial Wellbeing in a Socioeconomic Environment: The FWI Model in a Circular Economy and Climate Finance

Enkeleda Lulaj; Ani Mekaniwati

doi:10.5755/j01.ee.36.1.35058

Authors

Enkeleda Lulaj Faculty of Business, University Haxhi Zeka, Kosovo
Ani Mekaniwati Kesatuan Institute of Business and Informatics, Inndonesia; Faculty of Technology Management and Business, Universiti Tun Hussein Onn Malaysia (UTHM), Malaysia

DOI:

https://doi.org/10.5755/j01.ee.36.1.35058

Keywords:

Climate Finance, Circular Economy, Financial Literacy, Financial Wellbeing Index (FWI); , Socioeconomic Environment, SEM, Sustainable Finance, Climate Change, Households

Abstract

This research aimed to investigate measurement analyses that could promote sustainable financial literacy practices, thereby enhancing financial well-being in a socioeconomic environment. It focused on examining the factors of the Financial Well-Being Index (FWI) model and identifying gaps in financial literacy within the context of a circular economy and climate finance. Confirmatory Factorial Analysis (CFA) and Structural Equation Modeling (SEM) were employed using data collected from 402 families in Kosovo during the years 2022-2023. The analyses revealed interrelationships among financial literacy, financial well-being, and the socioeconomic environment. Strong financial behavior was associated with a reduced need for financial education, while the lack of financial balance hindered resilience and well-being. Savings positively impacted the quality of life and homeownership. Additionally, the need for financial education positively influenced financial attitude, and financial resilience indirectly affected the financial situation. Financial literacy had both direct and indirect effects on the socioeconomic environment through its impact on financial well-being. The study confirmed the significant role of financial literacy in improving financial well-being and the socioeconomic environment. Future research should evaluate the effectiveness of financial education interventions and explore the relationship between financial literacy, climate policy, and income distribution within the framework of the circular economy and climate finance.

Author Biographies

Enkeleda Lulaj, Faculty of Business, University Haxhi Zeka, Kosovo

Enkeleda Lulaj holds a Ph.D. in Economic Sciences with a focus on Finance and serves as an Assistant Professor at the Faculty of Business, Haxhi Zeka University in Kosovo. With extensive international experience, she has been a visiting professor at universities worldwide and a featured speaker at various academic events. Dr. Lulaj is an accomplished academic with a strong publication record, having worked as an editor, reviewer, and author for prestigious academic journals. She is also an active member of editorial and review boards for journals indexed in Scopus and Web of Science. In addition to her academic work, Dr. Lulaj has completed training programs at leading universities and has participated in various projects. Her contributions to the field have earned her recognition and awards, both locally and globally, as a distinguished student and professor in global education.

Ani Mekaniwati, Kesatuan Institute of Business and Informatics, Inndonesia; Faculty of Technology Management and Business, Universiti Tun Hussein Onn Malaysia (UTHM), Malaysia

Ani Mekaniwati, SE., MP. The author continued her education at the National Development University of Jakarta, majoring in Banking. She works as a supervisor at LIPPO BANK, a manager at CV Sakamuda Tama, and an entrepreneur and lecturer at IBI Kesatuan, Indonesia. She studied at STIEK, majoring in financial management; she continued her S2 education, majoring in Industrial Profession (MP) at IPB Bogor, and graduated in 2010. Further studies are in the Doctoral Program at Universiti Tun Hussein Onn Malaysia. Writing articles and books on small and medium enterprises, financial management, entrepreneurship, business management, business ethics, and digital marketing.