Impact of Financial Literacy on Individual Saving: A Study in the Omani Context

Abstract

This exploratory study examines the effect of financial literacy (henceforward FL) on savings. A survey was conducted on 200 individuals in Oman for this study. Apart from FL, socio-demographics such as gender, age, and education were also analyzed. Data analysis was done using logistic regression. The results show that the level of FL had a significant, positive impact on individual savings. Also, demographics, such as age, educational level influenced the probability of saving positively. Results of this study advocate that it is important to increase financial literacy as it leads to more savings and thus helps in providing investment for the diversification of the Omani economy.