Financial literacy environment scan in Mozambique

Abstract

This research aims to scan financial literacy in Mozambique, assessing its levels and identifying the sociodemographic factors that influence it, generalizing to the developing countries. Quantitative research was performed using a survey database of 3,875 respondents collected in Mozambique. Our results document that more than 61% of the respondents did not answer correctly the questions regarding financial literacy, which indicates that the levels of financial literacy in Mozambique are low. Individuals are not qualified to make the most appropriate financial decisions and end up compromising their financial well-being. It was also found that age impacts respondents' financial knowledge, gender influences financial behavior, educational level influences financial knowledge and behavior, and the training area influences financial knowledge, attitude, and behavior. This article contributes by providing information regarding the financial literacy of Mozambique, which is still scarce and providing a scientific basis for decision-makers to improve public policies regarding financial literacy.