The mediating role of financial discipline on the relationship between the youth livelihood fund and youth welfare : a case of Busitema sub-county in Samia Bugwe north in Busia district

Abstract

The purpose of the study is to investigate the mediating role of financial discipline on the relationship between the Youth Livelihood Fund (YLF) and youth welfare in Busitema Subcounty in Samia Bugwe North Busia District. The specific objectives included: examining the relationship between the YLF and Youth Welfare, establishing the relationship between the financial discipline and Youth Welfare, and examining the mediating role of the financial discipline on the relationship between the YLF Fund and Youth Welfare in Busitema subcounty in Samia Bugwe North in Busia District. A cross-sectional descriptive research design was employed, utilizing both quantitative and qualitative data collection methods. The target population included the youths from Busitema Sub-county in Samia Bugwe North Constituency in Busia District, who were direct beneficiaries of the YLP. The study used stratified random sampling and purposive sampling techniques to select the respondents from the study population. The study utilized a structured questionnaire to gather quantitative data and an interview guide to collect qualitative data. The study employed descriptive and regression analysis techniques to address the research hypotheses. To investigate the association between the study variables, the research utilized Spearman's rank correlation test. The study tested the mediation effect using Partial Least Structural Equation Modeling (PL-SEM) with the bootstrapping method. The findings from the study reveal that the youth livelihood fund had a positive and significant association with youth welfare in Busitema sub-county. The correlation findings reveal that there was a positive and significant relationship between financial discipline and youth welfare in Busitema SubCounty. The PL-SEM findings showed that there was a positive partial mediating effect of financial discipline on the relationship between YLF and youth welfare in Busitema SubCounty. In conclusion, the study provides evidence that financial discipline plays a remarkable positive role in mediating the effect of financial discipline on the relationship between YLF and youth welfare in Busitema Sub-County. There is a need for the expansion of the Youth Livelihood Fund to reach a wider group of eligible youth in the Busia district. This could ensure that more young people have access to the fund. There is a need to develop and implement financial literacy programmes specifically tailored to the needs and circumstances of youth in Busitema Sub-County. These programmes should focus on budgeting, saving, investing, and managing debt effectively. Enhance financial discipline training and education for youth beneficiaries of the Youth Livelihood Fund in Busitema district. This should include workshops, seminars, and educational materials to help them make responsible financial decisions.