Financial Literacy and Poverty Alleviation

Poverty alleviation is at the heart of every economic and social policy, with the goal of improving individual financial well-being. Financial well-being, on the other hand, does not always indicate only the increase of financial resources, but also the acquisition of knowledge in order to secure financial stability. With today’s technological advancements, more and more financial instruments are being made available to the general public without prior education in the appropriation and use of such financial instruments, which could further impoverish them. Clients of financial services are forced to sign contract terms and conditions without first reading the material to ensure that they have given their agreement to the contracts. This article looks at the role of financial education in poverty alleviation in Cameroon, taking into account the level of financial literacy among employees and households.

With the help of questionnaires and interviews, the study in Yaounde, Cameroon included both qualitative and quantitative research approaches. A purposive sampling technique was employed to deliver questionnaires to a sample of 100 workers, and the views of 20 retirees were sampled on their awareness of various financial tools and how these instruments were used to promote their financial wellness and sustainability in retirement. The information gathered was analysed with SPSS, and the results were presented as descriptive statistics. The data revealed that a large proportion of Cameroonian workers are unfamiliar with the various financial tools and are heavily involved in risky borrowing without considering the implications. According to the findings of the interview, the vast majority of workers only consider retirement plans as they near retirement age. According to this report, the necessity for long-term financial literacy for Cameroon’s workers in order to relieve poverty remains a top policy suggestion.

Author(S) Details

Susannash Limunga Esowe
IRIC, University of Yaounde 2, Cameroon.

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