Should Financial Literacy in Ghana be in Levels?

Abstract

According to survey reports, a significant number of individuals lack the financial literacy necessary to participate actively in the financial market. This study examines survey data from 532 individuals to explore the importance of financial literacy levels. We also investigate how socioeconomic factors and financial investments affect basic financial literacy. The findings indicate disparities in test scores between basic and advanced financial literacy, highlighting the need for a tiered financial literacy approach. Logistic regression analysis revealed that marital status, employment status, utilization of bank loans, education level, and number of financial investments influenced higher levels of basic financial literacy. Based on these results, this study recommends a deliberate and committed provision of tiered financial literacy targeted at the general population by financial institutions and service regulators in Ghana. Providers of financial literacy programs should assess the existing financial literacy levels of their target markets and audiences to allocate resources effectively and address crucial financial literacy requirements.