Determinants of financial literacy among university students: Insight into background and exposure characteristics

Abstract

This article examined the level of financial literacy among university students in Ghana (N = 3932), and investigated which factors are linked with the different financial literacy components. This article is motivated by the increased drive toward financial inclusion and the critical role of financial knowledge in an increasingly sophisticated financial world. The framework used, assesses students’ knowledge in money management, savings and borrowing, investments, and insurance. The research findings show moderate knowledge in savings and borrowing but low level of knowledge in other finance issues among university students. Notably, the findings reveal that gender, work experience, subject of study, and mother’s level of education are all important determinants of financial knowledge among the students. The findings further show that students with relatively high financial knowledge are more likely to have sound judgment on financial issues; make the right financial decisions and have sound personal financial management practices. Based on the findings of the study, a national policy on financial literacy and educational programs are urgently needed as intervention to improve the level of financial knowledge of university students.

Keywords:

• Financial literacy
• Exposure Characteristics
• logit

JEL Classification:

• A20 A22 D14 G11 I20

Disclosure statement

No potential conflict of interest was reported by the author(s)

Additional information

Funding

The authors declare that no funds, grants, or other support were received during the preparation of this manuscript.