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

Enkeleda Lulaj & Ani Mekaniwati

Engineering Economics2025https://doi.org/10.5755/j01.ee.36.1.35058article
ABDC B
Weight
0.37

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.

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

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@article{enkeleda2025,
  title        = {{Financial Literacy Metrics for Financial Wellbeing in a Socioeconomic Environment: The FWI Model in a Circular Economy and Climate Finance}},
  author       = {Enkeleda Lulaj & Ani Mekaniwati},
  journal      = {Engineering Economics},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.5755/j01.ee.36.1.35058},
}

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0.37

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.16 × 0.4 = 0.06
M · momentum0.53 × 0.15 = 0.08
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

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