Pajaron, Marjorie C.Maliwat, Carl Francis C.2024-09-302024-09-302017-05-12https://selib.upd.edu.ph/etdir/handle/123456789/504The Philippines has experienced remarkable economic growth over the last few years, a growth that has not been felt by the vast majority of Filipinos. Discourse on the role of the financial sector in promoting inclusive economic growth has gained momentum in recent years, and the matter of financial inclusion has risen to prominence among government policymakers and the private financial sector. In this study, I aimed to determine the impact of financial inclusion, measured in terms of household expenditures on financial services and incomes from the use of financials services, on household welfare. I employed multiple econometric models, using expenditures on food, clothing, rent and utilities, durable and non-durable household goods, health, transportation, communication, recreation, education, and other goods and services as proxy indicators for household welfare, and a set of conventional welfare indicators and the use of different financial services among households as financial inclusion indicators. I found that household expenditures on financial services and incomes from the use of financial services increases different kinds of household expenditures, signifying increases in household welfare in terms of food, clothing, rent and utilities, durable and non-durable household goods, health, transportation, communications, recreation, education, and other goods and services. Moreover, I proved empirically that the use of financial services reduces the probability of household poverty, providing stronger support to the assertion that financial inclusion improves household welfare. Furthermore, I found empirical evidence that financially included households have higher levels of expenditures than financially excluded households using treatment effects estimation.enfinancial inclusionpoverty alleviationhousehold welfareformal financetreatment effectsThesis