Individual factors and financial literacy: a case of rural women in Luweero district

Abstract

This dissertation investigates the critical issue of low financial literacy among rural women in Uganda, focusing on the Luweero district. Despite its significance, rural women face challenges due to limited education access and cultural norms. In Luweero, where rural women face heightened vulnerability due to limited access to education and cultural norms, specific challenges further impede financial literacy. The study therefore aims to understand the effect of individual factors on financial literacy, assessing current level of financial literacy, exploring the relationship between financial behaviour and literacy, examining the connection between financial attitudes and literacy, and analyzing the influence of financial influences on literacy. Data was collected from 155 rural women in Luweero District as part of the Financial Awareness and Literacy Project conducted in August 2022. The study found that financial literacy among these women is moderate, with a median score of 6.000 out of 10. Formal education, particularly financial education in schools, was found to significantly influence financial literacy levels. Consulting financial advisors and fostering transparency in financial transactions were also associated with higher financial literacy. The study recommends tailored financial literacy programs for different groups of rural women, integrating financial education into schools, improving access to financial advisory services, promoting transparency in transactions, strengthening Savings and Credit Cooperative Organizations (Saccos), encouraging emergency savings, addressing the digital divide for internet and book resources, and advocating for community-driven peer-based financial education. This research contributes to understanding financial literacy in rural settings and provides actionable recommendations for policymakers, educators, non-governmental organizations, and community leaders seeking to improve the financial well-being of rural women in Luweero District. It underscores the importance of addressing unique challenges and opportunities that shape financial literacy outcomes in this context.