Understanding sociodemographic factors influencing households’ financial literacy in Tanzania

Figures & data

Table 1. Variables description

S/n	Variable	Description	Nature
1	Age (age)	Number of years lived by the household head	Continuous Variable
2	Gender (gender)	Sex of the household head	Dummy variable: It takes the value of 1 1 if the head of the household is male and 0 if female.
3	Income(hhincome)	Represents household annual income	Continuous Variable
4.	Education level(edu)	Represents highest level of education reached by the head of household. No Formal Education Primary Secondary Tertiary	Categorical variables: 1 if no formal education, 0 otherwise; 1 if primary education, 0 otherwise; 1 if secondary education, 0 otherwise; 1 if tertiary education, 0 otherwise.
5.	Employment(emp)	Represents an employment status of head of household whether he/she is employed or not	It is a dummy variable with 1 value if household head is employed and 0 otherwise.

Table 2. Financial literacy and factor variables

		Financial literacy
	Observations	Literate (%)	Illiterate (%)
Overall sample	3,812	26.97	73.03
Gender Male Female	2,643 1,169	28 25	72 75
Information Formal Informal	43 3,769	46 29	54 71
Location Rural Urban	2,751 1,061	27 28	73 72
Risk attitude Risky Otherwise	1,664 2,148	33 22	67 78
Employment status Formal Otherwise	243 3,569	28 27	72 73
Education No formal Primary Secondary Tertiary	1,177 2,144 104 387	23 28 29 31	77 72 71 69

Source: Author’s Computation from FinScope Survey Data-2017

Table 3. Probit regression results

Variables	Coefficients	Marginal effect
Constant	−0.524**
	(2.302)
Gender	+0.356***	0.138***
	(3.0254)	(3.0166)
Education	+0.105**	0.159**
	(2.0297)	(2.0146)
Employment	−0.166*	0.143
	(1.978)	(0.0754)
Age	0.159***	0.328***
	(3.0364)	(3.0435)
Age2	−0.175**	−0.328***
	(2.0364)	(3.0435)
Income	+0.296***	+0.0845**
	(3.987)	2.657
Observations	3812	3812
Wald Chi2 (6)	167.08	235.35
Significance	0.0000	0.0000
Pseudo R2	0.0739	0.1589
% correctly classified	53.69	61.89