Financial literacy and savings decisions by adult financial consumers in Zimbabwe

Murendo, C and Mutsonziwa, K (2017) Financial literacy and savings decisions by adult financial consumers in Zimbabwe. International Journal of Consumer Studies, 41 (1). pp. 95-103. ISSN 1470-6423

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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.

Item Type: Article
Divisions: Research Program : East & Southern Africa
Uncontrolled Keywords: Financial literacy, Savings decisions, Financial consumers, Personal finance, Savings, Zimbabwe, Savings behaviour
Subjects: Others
Others > Zimbabwe
Depositing User: Mr Ramesh K
Date Deposited: 31 Mar 2017 09:45
Last Modified: 31 Mar 2017 10:19
Official URL:
Acknowledgement: The authors acknowledge FinMark Trust for providing access to the Zimbabwe 2014 FinScope Consumer Survey data set used for this article. The authors take responsibility for all remaining errors.
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