FINANCIAL LITERACY AND DECISION-MAKING IN FRAGILE ECONOMIES: A SOCIAL DEVELOPMENT PERSPECTIVE FROM SALARIED EMPLOYEES IN TAIZ, YEMEN

This study explored the relationship between financial literacy and financial decision-making among salaried individuals in Taiz, Yemen, a region experiencing ongoing economic fragility. A structured questionnaire was administered to 105 respondents across public, private, and informal employment sectors using a purposive sampling approach. We foundan overall moderate financial literacy with a strong positive correlation with financial decision-making(r = 0.947). Regression analysis revealed that financial literacy explains nearly 90% of the variation in financial decision-making scores (R² = 0.897). These findings highlight the essential role of financial literacy in enabling individuals to make informed financial decisions in times of economic instability. Ourstudy contributes to social development literature by highlighting how financial education contributes to individual empowerment and community resilience in unstable or fragile economies. It has practical implications for policymakers, educators and NGOs seeking to improve economic stability and security through financial literacy initiatives.This study is among the first to empirically validate the impact of financial literacy on decision-making in Yemen.