THE IMPACT OF FINANCIAL INCLUSION TO YOUTH WELFARE IN RWANDA. CASE STUDY BUSINESS DEVELOPMENT FUND(BDF) HEADQUARTERS. PERIOD 2020-2023

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.