Demographic Determinants of Financial Literacy in the Masvingo Province of Zimbabwe

Financial literacy has been acknowledged as a key skill for individuals who are entrenched in a progressively composite financial setting. Financial literacy helps individuals make more self-assured and proficient decisions in their lives. That there is a nexus between a financially literate populace and economic growth can never be in doubt. Notwithstanding its importance, many studies specify that much of the world's population writhes from financial illiteracy.
This study has as its central theme in developing a logistic regression model that explains the influence of demographic factors on financial literacy levels. The study made use of cross sectional data collected from 260 respondents all from Masvingo province, Zimbabwe. This study analyzed the influence of demographic variables, which include age, household income, educational levels, gender and geographical location on financial literacy in Zimbabwe.
The study confirms age and educational levels as significantly influencing financial literacy. However, the study found out that geographical location, income and age do not influence financial literacy in Zimbabwe. Based on the results, the study recommends that financial literacy centres be opened by all banks with focus on the spread of financial literacy, to create awareness about financial products and provision of counselling facilities for customers of banks.

Keywords: Demographic variables; financial literacy; logit regression model; multi-currency era.