Abstract:
This study examines how financial inclusion affects youth welfare in Rwanda, a country with
a fast-expanding youth population that experiences numerous socioeconomic difficulties.
Financial inclusion is defined as having access to and using a range of financial services. It is
widely acknowledged as a crucial tool for improving people's socioeconomic condition,
especially for young people. Knowing how financial inclusion affects youth welfare is crucial
as Rwanda works to achieve its Vision 2050 aspirations of becoming an upper-middle
income nation. Young people with access to financial services demonstrate higher levels of
economic empowerment, characterized by increased savings, investments in education, and
entrepreneurial activities. For instance, youth who utilize savings accounts report improved
financial stability, enabling them to manage unexpected expenses and invest in skill
development. Additionally, ac2cess to microloans has been instrumental in fostering
entrepreneurship among youth, providing them with the necessary capital to start small
businesses. This not only contributes to individual welfare but also generates employment
opportunities within their communities.
A large number of youth either don't know about the financial services that are offered or
don't think they are necessary for their needs. In order to create an inclusive financial climate
that supports the goals of all young, it is imperative that these impediments be addressed.
This study's findings emphasize the vital role that financial inclusion plays in improving
Rwanda's youth wellbeing. It urges financial institutions and legislators to create focused
plans that improve young people's access to financial services and foster their financial
literacy. Rwanda should use the potential of its youth by funding financial inclusion
initiatives, which would enable them to actively participate in the economy and promote
sustainable development. This study adds to the growing body of knowledge on financial
inclusion and youth empowerment by highlighting the need of a comprehensive strategy that
takes into account the particular difficulties that young people experience as they work
towards better futures.
