The Effect Of Financial Literacy On Household Financial Decision Making In Zimbabwe
The research paper explored the effect of financial literacy on household financial decision making in Zimbabwe. The main objectives were to determine the effect of financial literacy on financial decision making and to explore factors that influence household financial decision making. The study...
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| Main Authors: | , , , , |
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| Other Authors: | |
| Format: | research article |
| Language: | English |
| Published: |
IJRP
2022
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| Subjects: | |
| Online Access: | https://cris.library.msu.ac.zw//handle/11408/5271 |
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| Summary: | The research paper explored the effect of financial literacy on household financial decision making in
Zimbabwe. The main objectives were to determine the effect of financial literacy on financial decision
making and to explore factors that influence household financial decision making. The study used a mixed
methods research design, and the sample was drawn using convenience sampling. The study used a logistic
regression analysis to model the results of the study, as well as thematic analysis to analyse the qualitative
data. The Statistical package Stata 11 was used to run the logistic regression analysis, on a sample of 140
participants. The regression results established that financial literacy, the level of education and the level of
income were the major determinants of household financial decision making as the variables were statistically
significant at 95% level of confidence. Qualitative interviews established macroeconomic fundamentals,
previous experiences and advice from family and friends as other factors that influence household decision
making. That is the level of inflation, exchange rates, bank charges, previous experiences with financial
institutions and financial advice from children and friends largely influence household financial decision
making. The study recommends government to introduce basic concepts of financial literacy in courses and
subjects at schools, technical colleges and university as part of curricula and make them compulsory.
Household heads should improve their financial literacy capabilities and consider formal financial advice
when making financial decisions |
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