| dc.description.abstract | Purpose: A growing body of knowledge describes financial capability as
financial knowledge and skills, a combination of financial behavior, or having
knowledge and the opportunity to apply it. However, developed knowledge has
rarely focused on the financial capability or functioning of the low-income
working class constrained by resources and opportunities. This study
investigates the financial capability of Bangladesh’s low-income readymade
garment (RMG) workers, focusing on their financial knowledge and behavior.
Methodology: This study has conducted six focus group discussions (FGD) and
ten in-depth interviews with RMG workers. The participants for FGDs and indepth interviews are selected purposively covering three industrial cities –
Dhaka, Gazipur, and Narayanganj. The FGDs and interviews are analyzed
thematically.
Findings: The study finds that workers lack knowledge and skills regarding
financial products and services and their associated charges and are also very
present-focused in financial matters. This research also exhibits the challenges
of workers in money management, future planning, information collection and
utilisation, and financial product management.
Practical Implications: The study contributes to the understanding that lack of
knowledge, insufficiency of income, and lack of trust in financial institutions
shape the financial functioning of the low-income RMG workers and suggests
wage reform and inclusive financial policy for the workers.
Originality/Value: This study determines the financial capability of lowincome RMG workers focusing on cognitive and behavioral aspects. It fills the
research gap on the financial capability of the low-income working class of
Bangladesh in general and the RMG industry in particular.
Limitations: The study’s results cannot be generalized for low-income workers
of other industries as the data is collected from some purposively selected RMG
workers. Additionally, the study relies on self-reported data, which may be
subject to recall or social desirability bias. The absence of a mixed analysis
method is another limitation of the study. | en_US |
