How does financial literacy contribute to Muslim females’ financial inclusion: the moderating effect of age and education using PLS-MGA

Purpose While prior research reveals that women generally have lower levels of financial literacy compared to men, there is still a lack of research examining the factors that influence financial literacy among women in comparison to men. This study aims to investigate the key factors influencing financial literacy and its impact on financial inclusion among women in Morocco, a majority-Muslim emerging economy. The research proposes and tests a comprehensive model to explore the mechanisms that contribute to women’s financial literacy and its role in promoting financial inclusion during a period characterized by high inflation and economic slowdown. In addition, the study examines how age and education moderate these effects using multi-group analysis. Design/methodology/approach The hypotheses were tested using structural equation modeling with survey data collected from a sample of 409 Moroccan women. Findings This study finds that financial literacy significantly contributes to increasing women’s financial inclusion. Financial literacy is significantly influenced by financial socialization, financial knowledge and parental norms. However, financial attitude and financial socialization were found to have no significant impact on women’s financial literacy. In addition, the moderation effects of age and education were confirmed, with more educated women demonstrating a stronger ability to translate financial behaviors into higher financial literacy, while age moderates the relationship between financial attitude and behavior. Practical implications The findings suggest that financial literacy is a key driver in promoting financial inclusion for women. Policymakers in Morocco, and in similar developing countries, could leverage these results to design targeted financial literacy programs aimed at increasing women’s financial inclusion. Specifically, financial literacy programs should be tailored to different ages and educational groups to maximize their effectiveness. Furthermore, education policymakers are encouraged to incorporate financial literacy into school curricula to foster financial knowledge from an early age. Originality/value This study contributes to the existing literature by offering empirical insights into financial literacy among women in Muslim-majority and emerging market contexts. It emphasizes the importance of tailored financial education programs that consider the unique demographic characteristics of women, particularly age and education. To the best of the author’s knowledge, this is the first study of its kind to explore the impact of financial literacy on women in the MENA region, particularly in light of the economic challenges posed by the COVID-19 pandemic and ongoing geopolitical instability.