Financial Literacy - Gambia
Financial Literacy in The Gambia
Overview
Financial inclusion means that individuals and enterprises can access and use a range of appropriate and responsibly provided financial services offered in a well-regulated environment.
The ability to manage personal finances is of utmost importance for individual and family well being. People are most likely to avoid financial problems if they keep track of their financial transactions, have a plan and make informed decisions. Financial literacy is an essential step toward financial freedom which requires the development of good financial habits through practice and self-discipline.
Data from 2018 personal financial management survey in the Gambia shows a gap in financial literacy among youths. Source: businessinthegambia.com
Financial Literacy
Through a survey of the most populous countries in the world, India, and Indonesia, Cole et al. (2010) present evidence that financial literacy is an important predictor of financial behaviour in emerging market countries. In a study conducted by Behrman et al. (2012), it was concluded that financial literacy is positively and significantly associated with total net wealth.
Even with 70% graduated respondents, the report reveals that many of the respondents are not financially literate as only 6-in-10 were able to answer both questions about inflation and compound interest correctly. Gender gap issue was also found in financial literacy as male respondents were more financially literate than the females.
Similarly, the study conducted by Business in The Gambia also found that financial literacy is positively related to formal education. High school and college graduates had an average score of 28.57% and 66.18% respectively in financial literacy test compared to the 71.57% and 84.04% average score for the bachelor and postgraduate degree holders respectively in the same test. Similarly, the average score among the youths was 65.73% while the adult respondents had 83.67% average score.
Some of the Institutions in the Gambia that provide Financial Literacy include;
Reliance Financial Services. www.rfs.gm
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