Exploring financial education and financial capability: A subgroup analysis of self-employed and paid-employed

The study examined the relationship between financial education and financial capability through a subgroup analysis of self-employed and paid-employed workers. Using the 2021 National Financial Capability Study, regression analysis with seemingly unrelated estimation shows that self-employed workers had lower levels of financial capability than paid-employed workers while financial education had a greater positive role on the financial capability of the self-employed workers than paid-employed workers. The findings suggest the importance of financial education as a positive factor in the financial capability of the self-employed worker. Tailoring educational programs to the unique needs of self-employed workers can enhance their effectiveness in financial capability.