Financial Literacy, Investment and Savings Decisions Among Government Institutions’ Workers in Mwanza, Tanzania.

Abstract

The study focused on examining how financial literacy influences the savings and investment decisions of government workers in Mwanza Tanzania. Design/methodology/approach: A cross-sectional design approach was adopted and specifically a multistage sampling technique was fully applied to select 271 government workers from different government institutions in Mwanza-Tanzania. Primary data was collected through the use of questionnaires and analysis of the sourced data was done through a logistic regression model which was binary in nature since this study had two dependent variables namely savings and investment. Findings: Findings of this study reveals that both financial attitude and financial knowledge were significant at a 5% level and had an impact on making sound investment and savings decisions among government workers. Research limitation/Implications: The study used only a selected sample of government employees in Mwanza. Further studies should focus on including other non-governmental employees and the scope should be broadened to have more robust results. Practical implications: From the study findings it is clear that most financially literate government workers stand a better chance of making prudent decisions when it comes to savings and investments which ultimately makes them better off in their financial and economic well being. Social Implications: Financial intermediaries and policymakers should devise a platform suited enough to equip government workers with the knowledge to make prudent savings and investment decisions. Originality / Value: The study revealed that attitude and knowledge are the determinants of savings and investment decisions of government employees.