Financial literacy in Tunisia: Its determinants and its implications on investment behavior

- We test the financial literacy level among the Tunisians households.
- We used a logistic analysis to determine the impact of the sociodemographics variables on the financial literacy level.
- We conclude on linking Financial Literacy to financial behavior and encouraging Tunisians and their families to invest in the sock market to strengthen their financial well being.
- We discuss how financial education can contribute to improve the situation in general and outline specific implications for future research.

Given the dynamic changes in the economic environment, especially in financial markets, a need is felt to improve investors' financial knowledge. Financial literacy entails informed financial decisions. The present study investigates the determinants of financial literacy and its impact on investment behavior. A questionnaire has been developed to elicit the study's variables and it is divided into three parts. The first part covers the demographic variables; the second deals with the financial behavior of the Tunisian households, and the third part is devoted to financial literacy.The study's findings are two fold: First, individuals with a low level of financial literacy are less likely to invest in the stock market. Second, the financial literacy level is found to be affected by age, education level, and the annual income.

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