The Impact of Financial Literacy on the Financial Well-Being of Women in Roscas: A Case of Dodoma Municipality
The Impact of Financial Literacy
Keywords:
Financial Literacy, ROSCAs, , Financial Well-being, Dodoma Municipality.Abstract
This study assessed the effect of financial literacy on women’s participation in Rotating Savings and Credit Associations (ROSCAs) and their financial well-being in Dodoma Municipality, Tanzania. Using a quantitative explanatory design, data were collected from 100 women ROSCA participants through structured questionnaires and analyzed using descriptive statistics, ANOVA, and multiple linear regression. Descriptive results showed generally positive financial literacy levels, with respondents reporting strong financial planning and management skills (Mean = 4.32, SD = 0.50), good understanding of ROSCA operations (Mean = 3.77, SD = 0.50), and moderate knowledge of basic financial concepts (Mean = 3.52, SD = 0.50). Inferential analysis revealed a strong positive relationship between financial literacy and financial well-being (R = 0.881, R² = 0.776, Adjusted R² = 0.760), with the regression model statistically significant (F = 47.364, p < 0.001). Financial risk analysis (B = 0.642, p = 0.001) was the strongest predictor, followed by financial planning and management (B = 0.593, p = 0.001) and understanding ROSCA operations (B = 0.532, p = 0.002). The study concludes that financial literacy significantly enhances women’s effective ROSCA participation and financial well-being. It recommends targeted financial literacy interventions, particularly in budgeting, ROSCA operations, and risk management, to strengthen women’s financial empowerment and maximize ROSCA effectiveness.
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