Examining the Influence of Financial Literacy on Investment Decisions Among Government Teachers in Kitwe, Zambia

Abstract

Despite the growing importance of financial literacy for personal economic well-being, many public sector employees struggle to make optimal investment choices. This study examines the influence of financial literacy dimensions—specifically financial communication, financial behaviour, financial ability, and financial knowledge—on the investment decisions of government teachers in Kitwe, Zambia. Using a quantitative correlational research design, primary data was collected from 405 government teachers via a structured online questionnaire. The data was analyzed using Pearson correlation and hierarchical multiple regression analyses. The findings reveal that financial knowledge, financial ability, and financial behaviour significantly and positively drive investment decisions. Conversely, informal financial communication was found to have an insignificant impact on investment choices. The study concludes that passive exposure to financial information is insufficient. Instead, policymakers and educational institutions should prioritize structured financial education programs that build cognitive competence and foster disciplined financial habits to enhance investment participation among educators