DETERMINANTS OF FINANCIAL LITERACY LEVELS AMONG RURAL WOMEN IN UGANDA

Abstract

Financial literacy has been seen as a global concern both in developing and developed countries. It affects both genders though women tend to have a lower financial literacy level compared to men. In Uganda, the government has implemented many programmes to support women to come out of poverty, but results are astonishing in terms of value of money and effort invested in these initiatives. Among the factors that may contribute to this challenge is low level of financial literacy among women. This study investigates the determinants of financial literacy levels among rural women: a case study of Luweero district. Using a multi-stage sampling strategy with a cross-sectional quantitative research design, a sample of 150 rural women operating small businesses and are subsistence farmers was selected. A binary logistic regression was used to predict the likelihood of determinants influencing financial literacy levels. Results indicated that: the average level of financial literacy score of women was 62.32; 53.55% were financially illiterate; and 46.45% only were financially literate. Rural women that had ever received financial training were 13.35 times more likely to have high financial literacy levels than their counterparts (OR=13.35, p=0.001, 95% CI=2.74-65.03); the same with those with secondary education (OR=12.04, p-value = 0.01, 95% CI=1.80-80.65); and tertiary education level ((OR= 82.34, p-value = 0.02, 95% CI=2.23-3042.23) compared to those without any level of education (OR= 82.34, p-value = 0.02, 95% CI=2.23-3042.23). Again, women who prepare budgets and are specialist buyers with (OR=7.07, p-value = 0.001, 95% CI=2.16-23.13), (OR=2.25, p-value = 0.03, 95% CI=1.08-4.69) had higher financial literacy levels compared to their counterparts respectively. The findings provide a rich understanding of factors associated with financial literacy levels among rural women in Luweero district of Uganda. Constant training programmes on financial literacy and financial education can propel high financial literacy levels in Uganda.