Financial Literacy among Urban Dwellers in Addis Ababa, Ethiopia

Abstract

Abstract: Financial literacy enables individuals to make optimal personal financial decisions in their lives. The objective of this study was to measure and describe financial literacy across demographic characteristics of urban dwellers in Addis Ababa, Ethiopia. For the purpose primary data were collected from a sample of 402 individuals in Addis Ababa Ethiopia. The results of the study showed more than half of the sample found to have a moderate to high levels of financial literacy, but the remaining with low level of financial literacy demands financial education intervention. The results from one way between subjects ANOVA showed statistically significant financial literacy difference by gender, age, level of education, employment status and availability of sustainable income in the household. And a lower level of financial literacy was observed among female and respondents in younger and older age, low education level, unemployed, and no sustainable income categories. The study suggests the need for financial education to urban dwellers in Addis Ababa and other parts of Ethiopia. Financial education policy and programs should also target groups identified with low level of financial literacy