The Impact of Tertiary Educators’ Financial Literacy on Saving Behaviour in Zimbabwe and the Moderating Effects of Demographic Factors

Financial literacy is a major issue of concern as itaffects both businesses and individuals globally. Being highly literate has been seen to have considerable effect on the management of interest rates on loans, retirement savings,poverty levels, massive debts, andrisk management. Financial illiteracy impedes economic growth, financial system stability, and income streams at a macro level The studyinvestigated the impact of tertiary educators’financial literacy on saving behaviour and the moderating effects of demographic factors (age, gender, level of education, subjecttaught, and length of service) using Mashonaland Central Provinceas a case study. The research objectives were to measure the level of financial literacy of educators, to determine factors influencing the financial literacyof educators, to determine the saving behaviour of educators and to recommend strategies which enhance the financial literacy of educators. The study adopted a positivism philosophy and an explanatoryresearch design. The target population was made up ofeducators from theuniversitiesand collegesin Mashonaland Central. A sample of 384educators was drawn using random sampling basedonBlacks(2005) sample size formula.Questionnaires were used to collect dataand descriptive statistics and regression analysis wereused to analyse the responses.The study found thateducators’knowledge of financial instruments and computation capabilities had a significant effect on saving behaviour.All demographic factors were found to have no significant impact on the educators’saving behaviours.The study recommends that educators should be trainedon financial literacy, that the ministry of higher and tertiary education should provide a room for further improvement of financial literacy of educators. Areas of further studies includestudying the feasibility of introducing financial literacy in elementary school and the effect of financial educators’ literacyon financial inclusion.