People with disabilities are five times more likely to experience poverty than the general population, yet very little is known about how financial capability can help increase their financial well-being. Using secondary data from the 2015 National Financial Capabilities Study, this study used path analysis to test Sherraden’s theoretical model of building financial capability on a nationally representative sample of people with disabilities. This included assessing how variables of ability (i.e., financial literacy) and variables of opportunity (i.e., financial inclusion) combine to improve one’s financial well-being and stability.
Findings
Multiple fit indices suggested that the data fit the path model well: χ2 = 37.73 (14), p = .001, RMSEA = 0.04 (90% CI: 0.03–0.05), TLI = 0.97, CFI = 0.99. Findings indicate that financial literacy and financial access both impact the financial well-being in this sample of people with disabilities (N = 1232). Also, access to financial products moderated financial literacy to increase its impact. This study empirically substantiated the selected financial capability framework.
Applications
Implications of this study are targeted toward social work researchers and practitioners. There have been very few empirical studies on building financial capability among people with disabilities, so this article serves as a foundation for much needed research in this area while also filling a gap in the extant literature. Additionally, disability case managers will find this research useful, as it provides evidence for practical steps they can take to help their clients work toward achieving financial well-being.
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