The authors of this paper investigated “how consumers acquire knowledge of financial numeracy and how it’s applied, especially to their economic and social lives.” Past research has shown both higher borrowing costs and over-spending to be correlated with lower levels of financial literacy. Although governments in many high-income nations have launched programs to increase financial literacy, anecdotal evidence suggests that few people in developing countries are benefiting from financial literacy education. Although Ghana was one of the first African countries to implement a strategy to boost financial literacy, 80 percent of Ghanaians still lack financial skills.
Based on data from 118 teachers in Ghana’s Upper East Region, the authors find that many of the participants “barely have any money on them or in their bank accounts” due to “budgeting issues resulting from less exposure to financial education.” An inability to plan for emergencies can seep into other aspects of a teacher’s life, negatively affecting work performance and thus the ability of students to learn. Lack of financial stability also led to instances of job loss as well as divorce. Furthermore, poor financial literacy is correlated with increased substance use, which exacerbates other problems.
To mitigate these challenges, the authors argue that it is extremely important for governments and other stakeholders to improve financial literacy levels, both in terms of knowledge and the ability to apply that knowledge.
This is a summary of a paper by Juabin Matey, Yennukua Duut and Mensah Felix Kombian; published by the International Research Journal of Multidisciplinary Scope (IRJMS); January 2021; 14 pages; available at https://www.findevgateway.org/sites/default/files/publications/submissions/79946/Financial%20Literacy%20Education-Implication%20on%20the%20Economic%20and%20Social%20Life%20of%20the%20Teacher%20in%20Ghana.pdf
By Bradley Shulman, Research Associate
Additional Resources
IRJMS homepage
https://www.irjms.com
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