Exploring the Interplay between Public Teachers Level of Indebtedness and Financial Literacy Levels: A Case of Teachers in Eight Selected Public Primary and Secondary Schools in Lusaka.

Abstract

The main objective of this study was to explore the interplay between public teachers' level of indebtedness and financial literacy levels, which was a case of all the teachers in eight selected public schools in Lusaka central. Lusaka Central was used because it is strategically located at the heart of the capital city, making it a central and accessible hub for the researcher and for the fact that teachers from various backgrounds and demographics are found in this area, hence the researchers choice. This study used a mixed method approach and analyzed data descriptively and using the SPSS version 16 software. The findings revealed that teachers who had less knowledge about financial literacy were found to have borrowed excessively and repeatedly, at least following their responses, an indication that financial literacy levels had a direct relationship on the level of debt most teachers had accumulated. A regression analysis further explored the extent of indebtedness among teachers, uncovering a strong and positive relationship between lack of financial literacy and the frequency of obtaining loans. This suggested a potential pattern of recurring financial commitments and indebtedness within this group, emphasizing the necessity for targeted interventions to address such trends. Moreover, the study elucidated a negative coefficient (beta) of -0.516, suggesting that better financial literacy levels by respondents were associated with a reduced frequency of obtaining loans or credit among teachers. This study highly recommend that tailored financial literacy programs should be designed to address the diverse financial practices and attitudes identified among teachers