AbstractThis study examines how financial literacy and financial innovation can improvefinancial inclusion among households in Uganda. Large sections of the population inrural and urban areas in Uganda still remain out of the coverage of formal financialsystems. The study uses a cross sectional survey research design. The study populationcomprised of the adult population in both rural and urban settings in Uganda. Empiricaldata was analyzed using correlation and regression analyses. Findings indicate thatfinancial literacy and financial innovation are better determinants of financial inclusionamong households. Therefore, financially literate households have a higher potential tomake informed decisions on new innovations of financial products and services. Thispaper is the first of its kind to examine the importance of the determinants of financialinclusion as advocated for by the Central Bank of Uganda.

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