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: Lilian Gumbo, Blessed Mveku, Chosani Simon, Tanaka.T.T Mutero, Carouselia Cornick
Other Authors: Midlands State University
Format: research article
Language:English
Published: IJRP 2022
Subjects:
Online Access:https://cris.library.msu.ac.zw//handle/11408/5271
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author Lilian Gumbo
Blessed Mveku
Chosani Simon
Tanaka.T.T Mutero
Carouselia Cornick
author2 Midlands State University
author_facet Midlands State University
Lilian Gumbo
Blessed Mveku
Chosani Simon
Tanaka.T.T Mutero
Carouselia Cornick
author_sort Lilian Gumbo
collection DSpace
description 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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spelling ir-11408-52712022-11-28T07:27:55Z The Effect Of Financial Literacy On Household Financial Decision Making In Zimbabwe Lilian Gumbo Blessed Mveku Chosani Simon Tanaka.T.T Mutero Carouselia Cornick Midlands State University Midlands State University Midlands State University Midlands State University #PLACEHOLDER_PARENT_METADATA_VALUE# Financial literacy Household financial decision making macro-economic factors 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 103 1 366 375 2022-11-28T07:27:55Z 2022-11-28T07:27:55Z 2022 research article https://cris.library.msu.ac.zw//handle/11408/5271 10.47119/IJRP1001031620223420 en International Journal of Research Publications 2708-3578 open IJRP
spellingShingle Financial literacy
Household financial decision making
macro-economic factors
Lilian Gumbo
Blessed Mveku
Chosani Simon
Tanaka.T.T Mutero
Carouselia Cornick
The Effect Of Financial Literacy On Household Financial Decision Making In Zimbabwe
title The Effect Of Financial Literacy On Household Financial Decision Making In Zimbabwe
title_full The Effect Of Financial Literacy On Household Financial Decision Making In Zimbabwe
title_fullStr The Effect Of Financial Literacy On Household Financial Decision Making In Zimbabwe
title_full_unstemmed The Effect Of Financial Literacy On Household Financial Decision Making In Zimbabwe
title_short The Effect Of Financial Literacy On Household Financial Decision Making In Zimbabwe
title_sort effect of financial literacy on household financial decision making in zimbabwe
topic Financial literacy
Household financial decision making
macro-economic factors
url https://cris.library.msu.ac.zw//handle/11408/5271
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