Determinants of Financial Literacy among the National University of Lesotho Students

Abstract

As per the results gender is important in determining the level of financial literacy among NUL students. Consistent with literature, the results indicate that NUL male students are more financially knowledgeable than their female counterparts. This may be due to the fact that male students, on average, are the ones with less fear of engaging in financial commitments like borrowing from informal financial institutions. They, therefore, in the process get to acquire financial knowledge. In the similar vein, major of study by the respondents was also found important in determining the level of financial literacy among NUL students. However, place of residence was found to have little or no impact on the level of financial knowledge. Age was also not found to have a considerable impact on the level of financial literacy among the students. This could be due to the fact that the students, on average, are of the same age category and hence lack of age variation. To bridge the gap between financial literacy level of male and female students as well as business major and non-business major students, the ministry of education and training should consider introducing financial education into the core curriculum of secondary, middle level and higher learning institutions. Over and above improving financial literacy of students in Lesotho, that would also lead into a financially literate nation in the long run, a condition which could spur productive financial climate on a macro level.