Financial Literacy as a Catalyst for Women’s Wealth Building: A Mediation Study of Saving Behaviour Among Working Gen Z Women in India

This study examines a mediation role of saving behavior in the relationship between financial literacy and investing behavior in a sample size of 200 Gen Z women in employment in Andhra Pradesh, India. With the help of PLS-SEM methodology using Human Capital Theory and the Theory of Planned Behavior, the research paper shows that financial literacy has significant influence on the saving behavior (β = 0.622, p < 0.001), which leads to investment behavior (β = 0.685, p < 0.001). The mediation analysis indicates that 52 percent of the total impact of financial literacy on investment behavior can be attributed to saving behavior (indirect effect β = 0.426, p = 0.001). This proves that learning and doing are connected sequentially. The findings indicate that investment decision is directly influenced by financial literacy (β = 0.386), and the indirect impact via the systematic saving patterns is equally significant. These findings highlight the need to have holistic approaches to treatment that deal with cognitive and behavioral components to enhance the economic potential of women. The research offers empirical data to develop policies that would boost financial inclusion in digitally-receptive but economically- settled young women in emerging economies.