The Contribution of Financial Literacy towards Poverty Alleviation in Cameroon

Abstract

Poverty in most cases is measured taking into consideration the financial wellbeing of the individuals concern. Financial wellbeing on the other hand does not only depend on accumulation of financial resources but as well on the acquisition of knowledge on financial sustainability.This study seeks to analyze the contribution of financial literacy to poverty alleviation in Cameroon, taking into consideration the financial literacy level of workers and the households in general.The study that was conducted in Yaoundé- Cameroon made use of both qualitative and quantitative research methods with the aid of questionnaires and interviews. Through a purposive sampling technique, a sample of some 100 respondents made up of workers was administered questionnaires, and the views of some 20 retired persons were sampled on their knowledge on the available financial instruments, and how these instruments were used to enhance their financial wellbeing and sustainability at retirement age.The data collected was analyzed with the use of SPSS, and the results were presented in the form of descriptive statistics. The findings showed that a significant proportion of workers in Cameroon are not familiar with the available financial instrument, and were greatly engaged in reckless borrowing without knowing the consequences of such actions.; Result from the interview revealed that a great majority of workers only think of retirement provisions when they approach retirement age. Based on this study, the need for sustainability in financial literacy to Cameroon workers with the intention to alleviate poverty remains a top policy recommendation.