Exploring the Antecedents of Financial (Il-)Literacy Among African Women

Education for financial literacy provides individuals with the knowledge, aptitude, and skills base necessary to become questioning and informed consumers of financial services and manage their finances effectively. It has been found from the reports that the financial literacy rate is a little low in emerging economies, and over the top of it, hardly 30% of females are financially literate in such economies (Source: S&P Global FinLit Survey, 2016). Thus, the current study aims at exploring the antecedents of financial literacy among lower, middle, and upper-middle-class women in developing nations, such as Africa. The statistical population of research includes 184 African female respondents belonging to corporate professionals/Academicians/students/housewives aged between 20 and 50 years. The data were collected with the help of a structured questionnaire and analysis was done through SPSS 23. Exploratory factor analysis was applied to identify the factors related to financial literacy among African women. The analysis revealed four factors that are important for financial literacy in Africa. Out of the various scales of financial literacy, four constructs were identified: financial awareness, financial attitude, informed decision-making, and high investment. Though in terms of education and awareness, women were found to be less educated and controlled in decision-making as well.