Introduction

Financial literacy refers to the ability to understand and apply different financial skills effectively, including
personal financial management, budgeting, and saving.
Financial literacy makes individuals become self-sufficient, so that financial stability can be accomplished.

Financial literacy is very crucial as one cannot be successful financially without proper financial decisions. Under
financial literacy, a number of activities are involved with the aim of enhancing the knowledge, confidence, and
skill of consumers so that they can manage finance better. Some surveys are reported that there is huge gap of
women in financial matters!

Financial literacy helps individual across financial problems. Financial literacy makes individuals responsible in
financial decisions and will influence whether she/he control his/her money or money is in control of your life. It
gives one’s the confidence to manage money wisely, be less trapped by debt, grow money for both long- and short-
term goals and set someone’s for retirement

Investment is simply an asset acquired or invested in to build wealth and save money from the hard earned income
or appreciation. Investment meaning is primarily to obtain an additional source of income or gain profit from the
investment over a specific period of time.

An investment can refer to any mechanism used for generating future income. This includes the purchase of bonds,
stocks, or real estate property, among other . Additionally, purchasing a property that can be used to produce goods
can be considered an investment.

Women’s economic participation and their ownership and control of productive assets speeds up development, it
helps overcome poverty, reduces inequalities and improves children’s nutrition, health, and school attendance.
Women typically plays a major role in the development of their families! Empowering women in financial literacy
may lead to the development of the whole society.

Financial literacy empowers people, especially women, to make independent decisions. During emergencies or
unforeseen circumstances, an individual can take correct steps if she is financially literate. A survey revealed that
only a small percentage of women are able to build on and grow their existing wealth.

Statement of the problem

Women’s financial empowerment is one of the biggest challenges in the world. In our communities the self-
sufficiency, independence, financial stability, and women's participation are quite weak.

Women in financial matters has been a great challenge. In Zanzibar men seems to have a great control over
economic development rather than women, since women have not been fully utilized in financial matters.
In today’s world, this 21 century women have the same role as men when it comes to the economic development
either of the family or of the nation. Apart from family development, woman also has a great contribution in
investment and national economy at large
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This study emerged with an objective to analyze the impact of financial literacy on investment decision amongst
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women's employed at Zanzibar Revenue Authority (ZRA).

 Research questions

i) What are the impacts of financial literacy on Investment Decision among employed women of Zanzibar Revenue
Authority (ZRA)?

Also the study sought to answer the following research questions:

 Does cash management literacy affect investment decision amongst women employed at Zanzibar Revenue
Authority (ZRA)?

 What is the effect of debt management literacy on investment decision amongst women employed at
Zanzibar Revenue Authority (ZRA)?

 How does savings literacy affects investment decision amongst women employed of Zanzibar Revenue
Authority (ZRA)?

 What is the effect of budgeting literacy on investment decision amongst women employed of Zanzibar
Revenue Authority (ZRA)?

Research Methodology

A predominantly qualitative research approach will be followed. Quantitative research the design determines the
researcher’s choices and actions, while in qualitative research the researcher’s
choices and actions will determine the design or strategy.

This study, was made of a survey research and literature review. A literature review will be survey research,
interviews will be used to adapt and attune the questionnaires.
The questionnaires will be designed to investigate the respondents’ perception of the content and structure of the
financial literacy concept and others.

The primary data for this empirical study will be collected from the employed women of Zanzibar Revenue
Authority (ZRA).
The study highlights the financial literacy level and investment decisions of employed women at ZRA . 50
respondents will be taken as samples on the basis of the random sampling method. The researcher will take care to
see that the respondents represent demographic factors like age, literacy level, income, cash management literacy,
debt management literacy, saving literacy and budget literacy under this study. In addition the primary data tools to
be used are interview and questionnaires, secondary data will be collected from various published sources, e-
journals, documents, previous research, journals, books and google scholar and will be used to gather articles for
the purpose of literature review.
Data analysis, SPSS will be used in the statistical analysis of the data and STATA will be used as data analysis
tools. Means, standard deviation, correlation and frequency distributions were calculated to ascertain and to verify
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the attitudes and perceptions of the respondent.

REFERENCES

 Chen, H., & Volpe, R. P. (1998). An Analysis of personal financial literacy among college students. Financial
Services Review.

 Gallery, N., Newton, C., & Palm, C. (2011). Framework for Assessing Financial Literacy and Superannuation
Investment Choice Decisions. Australasian Accounting, Business and Finance Journal.

 Jappelli, T., & Padula, M. (2013). Investment in financial literacy and saving decisions. Journal Of Banking &
Finance.

 Creswell, J. W. (2014). Research Design: Qualitative, Quantitative, and Mixed Methods Approaches (4th ed.). SAGE
Publications.

 Lusardi, A. & Mitchell O. S ,(2006), “Financial Literacy and Planning: Implications for Retirement Wellbeing,”
Working Paper, Pension Research Council, Wharton School, University of Pennsylvania

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