The need for financial literacy in Tanzania

Even with the prevalence of factors like social norms, income and other behavior biases, teaching children to financial matters may impart a sense of financial cognizance and responsibility. Same applies to saving habits and reducing financial dependency on parents. Teaching children personal financial matters may earlier on brings about financial freedom at their tender age. The Commonwealth Bank of Australia’s with the campaign called ‘one million kids’ noticed that increasing financial skills 10% of Australia’s population with poor financial literacy, the country could generate 15,000 new jobs and increase the Australia’s GDP by $6.2 billion annually. Kitting young people with financial knowledge is the best way for them to make well-informed choices about their financial future. (Kiyosaki & Lechter, 2004) said “Money is one form of power, but what is more powerful is financial education. Money comes and goes, but if you have the education about how money works, you gain power over it and can begin building wealth”
(Messy & Monticone, 2012) stress that there are very limited evidence of financial literacy level in Africa. The technological innovation forces, market innovations excelled by competition has produced a very sophisticated spectrum of consumer products and services from widely many providers. On the other hand a risk of predatory lending, high level of debts for consumption and low level of saving rate liniment the importance and urgency of financial literacy education in early ages (Braunstein & Welch, 2002).