Financial Capability Among Climate-Displaced Households: Financial Access, Adaptive Decision-Making, and Post-Displacement Livelihood Recovery

Patrick Sakdapolrak

Financial Capability Among Climate-Displaced Households: Financial Access, Adaptive Decision-Making, and Post-Displacement Livelihood Recovery

Author(s)	Prof. Patrick Sakdapolrak
Country	United States
Abstract	Climate-related displacement can disrupt household income, employment, productive assets, housing, savings arrangements, social networks, and access to formal financial institutions at the same time that families face unusually high expenditure requirements. Under such circumstances, financial literacy alone provides an incomplete explanation of household recovery because displaced families also require opportunities to act through accessible savings mechanisms, payments infrastructure, affordable credit, insurance, social protection, and secure financial documentation. This study examines financial capability among climate-displaced households through an integrated framework combining financial knowledge, planning behavior, emergency liquidity, formal financial access, and post-displacement financial decision-making. Because no original household-level field dataset was supplied, the study is explicitly framed as a simulation-based research article and does not present synthetic observations as actual survey evidence. A simulated dataset representing 360 hypothetical climate-displaced households was constructed across four financial-capability categories. The analysis evaluates livelihood recovery within six months, access to formal financial services, emergency-buffer capacity, planning regularity, and reliance on high-cost emergency borrowing. Simulated livelihood recovery increases from 27.78% among low-capability households to 77.78% among high-capability households. Formal financial access rises from 38.89% to 87.78%, while modeled reliance on high-cost emergency borrowing falls from 52.22% to 14.44%. The findings support a multidimensional interpretation of financial capability in which knowledge and behavioral competence become materially useful only when households retain practical access to financial institutions and resources. The article concludes that climate-displacement policy should integrate financial education with portable identification, transaction accounts, accessible emergency savings, responsible credit, cash-transfer infrastructure, livelihood assistance, and climate-resilient social protection.
Keywords	: financial capability, climate displacement, household resilience, financial inclusion, livelihood recovery, emergency savings, disaster displacement, climate vulnerability.
Field	Engineering
Published In	Volume 5, Issue 4, July-August 2024
Published On	2024-08-31

View / Download PDF File

About AJAMIR Fees & Payment Current Issue Publication Archive	Submit Research Paper Track Submission Status Publication Guidelines Publication Ethics Peer Review & Plagiarism	Join as a Reviewer Editors & Reviewers Reviewer Referral Program Get Reviewer Membership Certi.	Website/Journal Policies Usage Policy Content Policies Privacy Policy

Contact Us		+1-872-302-3851	editor@ajamir.com

American Journal of Advanced Multidisciplinary Innovation and Research

A Widely Indexed Open Access Peer Reviewed Multidisciplinary Bi-monthly Scholarly International Journal

Financial Capability Among Climate-Displaced Households: Financial Access, Adaptive Decision-Making, and Post-Displacement Livelihood Recovery

Share this