Financial literacy and savings decisions by adult financial consumers in Zimbabwe

We use survey data from a sample of 4000 adult financial consumers in Zimbabwe to analyse the determinants of financial literacy and its effect on individual's savings decisions. Results show that women have lower financial literacy than men. Furthermore, individuals' residing in rural are...

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Bibliographic Details
Published in:International journal of consumer studies 2017-01, Vol.41 (1), p.95-103
Main Authors: Murendo, Conrad, Mutsonziwa, Kingstone
Format: Article
Language:English
Subjects:
Consumer behavior
Consumers
Financial consumers
Financial literacy
Financial services
Intervention
Literacy
Rural areas
Rural communities
Savings
savings behaviour
Studies
Zimbabwe
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Summary:We use survey data from a sample of 4000 adult financial consumers in Zimbabwe to analyse the determinants of financial literacy and its effect on individual's savings decisions. Results show that women have lower financial literacy than men. Furthermore, individuals' residing in rural areas exhibit lower financial literacy compared with urban financial consumers. Financial literacy and financial services interventions targeting women and rural individuals should be strengthened. Econometric results show that financial literacy positively influences savings behaviour for both rural and urban individuals. Furthermore, financial literacy positively influences informal and formal savings. Policy interventions that foster financial literacy are needed to improve individuals saving behaviours.
ISSN:1470-6423
1470-6431
DOI:10.1111/ijcs.12318