Financial Literacy as a Driver of Financial Inclusion and Economic Empowerment: Empirical Evidence from Ukrainian Youth

This study investigates the role of financial literacy as a key driver of financial inclusion and behavioral empowerment among Ukrainian youth in the context of digital transformation and post-crisis economic recovery. Based on a large-scale survey of 948 respondents aged 18–25, the research employs an integrated methodological framework that combines index modeling, correlation analysis, and multivariate linear regression. Financial literacy is operationalized through a composite index constructed in accordance with the OECD/INFE methodology, incorporating financial knowledge, financial behavior, and financial attitudes. The results indicate a moderate overall level of financial literacy among Ukrainian youth, with an average index value of 0.591 on a normalized scale of 0–1. While theoretical financial knowledge demonstrates relatively stronger performance, practical financial behavior and attitudinal confidence remain comparatively weaker, revealing a persistent behavioral gap between awareness and action. Correlation analysis confirms strong internal consistency within the knowledge and behavior components, but only limited spillover from knowledge to real financial practices. Regression estimates reveal that self-confidence in personal financial knowledge is the only statistically significant predictor of financial inclusion (β = 0.0529, p < 0.01), whereas age, formal education, budgeting horizon, and financial independence exhibit no robust explanatory power. This finding highlights the decisive role of psychological factors in shaping financial behavior beyond formal human capital characteristics. The findings confirm that financial literacy influences financial inclusion not primarily through formal knowledge or education, but through psychological confidence and subjective financial capability. Access to financial services alone is insufficient without behavioral readiness and autonomy in decision-making. The study provides empirical evidence that confidence-oriented financial education, combined with digital financial infrastructure, is crucial for promoting sustainable financial inclusion among young people. These findings carry important implications for public policy in post-war and transition economies, emphasizing the need for integrated national strategies that link education, digitalization, and behavioral empowerment.