Impact of substance abuse on savings and investment behaviour of youths in Zimbabwe: Case of Gweru high density suburbs
Keywords:
Age, Savings, Investment, Non Governmentsl Organisations, GovernmentAbstract
The main aim of the study was to evaluate the impact of substance abuse on the savings and investment behavior of youths in Zimbabwe using Gweru's high-density suburbs as a casestudy. The research sought to identify factors in influencing drug abuse among youths in Zimbabwe. The study also aimed at assessing the impact of social factors on savings and investment habits of youths as well as evaluating the impact of demographic and economic factors on savings and investment habits of youths. A survey research design was adopted in which a total of two hundred and fifty (250) questionnaires were distributed to the youth aged between 18 and 35 years in three high-density suburbs of Gweru in Zimbabwe. The study used a convenience sampling technique to select research participants in three high-density suburbs namely Mtapa, Mambo and Ascot. The study found that the youth drink alcohol very often, have low income levels and they use higher proportions of their income in alcohol consumption. The study revealed that substance use among the youth in high-density suburbs of Gweru is mainly driven by unemployment, stress, and depression. Through regression analysis, the study revealed that income levels and number of boyfriends or girlfriends were found to be statistically insignificant in explaining savings and investment decisions by the youths. Among the statistically significant variables at 5% level of significance, substance abuse was found to hurt savings and investment decisions of the youth. Economic conditions, age, peer pressure, and training on savings and investment were found to have a positive impact on savings and investment decisions of the youth in the high-density suburbs of Gweru. The study recommended that youths should be encouraged to join savings groups so that they have a savings culture.
References
Ansari, Y. 2019. Age and the investment patterns-an empirical analysis. Wealth, 8(1), 80-82.
Angrisani, M., Kapteyn, A. and Lusardi, A. 2016. The national financial capability study: empirical findings from the American Life Panel Survey. FINRA report.
Hunjra, A. I. 2019. Investment options and preferences of small investors from salaried class. City University Research Journal, 9(2).
Bashir, T., Ahmed, H. R., Jahangir, S., Zaigam, S., Saeed, H. and Shafi, S. 2013.
Bhardwaj, N. and Chouhan, S. 2019. Saving and Investment pattern of salaried employees at Chandigarh University. International Journal of Research and Analytical Reviews 6(2): 885-892
Angrisani, M., Kapteyn, A. and Lusardi, A. 2016. The national financial capability study: empirical findings from the American Life Panel Survey. FINRA report.
Hunjra, A. I. 2019. Investment options and preferences of small investors from salaried class. City University Research Journal, 9(2).
Bashir, T., Ahmed, H. R., Jahangir, S., Zaigam, S., Saeed, H. and Shafi, S. 2013. Investment preferences and risk level: Behaviour of salaried individuals. IOSR Journal of Business and Management,10(1), 68-78.
Bhardwaj, N. and Chouhan, S. 2019. Saving and Investment pattern of salaried employees at Chandigarh University. International Journal of Research and Analytical Reviews 6(2): 885-892.
Bodie, Z., Treussard, J. and Willen, P. 2007. The theory of life-cycle saving and investing. FRB of Boston Public Policy Discussion Paper, (07-3).
Chikoko, L., Pierre, R. and Dzingirai, C. 2013. Macroeconomic analysis of determinants of savings behaviour in Zimbabwe (2009 -2012), International Journal of Business and Management,8(10),159-168.
Das, S. and Jain, R. 2014. A study on the influence of demographical variables on the factors of investment perspective on the Guwahati region. International journal of research in Humanities, arts and literature, 2(6): 97-102.
Despard, M. R., Friedline, T. and MartinWest, S. 2020. Why do households lack emergency savings? The role of financial capability. Journal of Family and Economic Issues.
Fenta, H., Mekonnen, Getahun, Z., Dessie, Z. G., Mitku, A. and Muluneh, E. 2017. Saving habits and its determinants In Amhara National Regional State, Ethiopia. Arabian Journal of Business and Management Review (Oman Chapter), 6(6): 9-18.
Friedline, T. and West, S. 2016. Financial education is not enough: Millennials may need financial capability to demonstrate healthier financial behaviors. Journal of Family and Economic Issues, 37(4), 649–671.
Friedman, M. 1957. Introduction to a theory of the consumption function. In A theory of the consumption function (pp. 1-6). Princeton University Press.
Girma, T., Belay, K., Bezabih, E. and Jema, H. 2013. Determinants of rural household savings in Ethiopia: The case of East Hararghe zone, Oromia regional state. Journal of Economics and Sustainable Development, 4 (3).
Factsheet. 2021. Zimbabwe’s drug, alcohol abuse problem under Covid-19. ZIMFACT. 309 10 Available https://zimfact.org/factsheet310 zimbabwesdrug-alcohol-abuse-problem-under-covid-19/.
Lotto, J. 2020. Towards improving households’ investment choices in Tanzania: Does financial literacy really matter? International Journal of Financial Studies, 8(2): 29.
Lusardi, A., Michaud, P. C. and Mitchell, O. S. 2017. Optimal financial knowledge and wealth inequality. Journal of Political Economy, 125(2), 431–477.https://doi.org/10.1086/69095 0.
Marandure, N., Mhizha, S., Wilson, A. and Nhunzvi, C. 2022. Understanding the nature of substance use in Zimbabwe: State of the art and ways forward: A scoping review protocol.
Matutu, V. and Mususa, D. 2019. Drug and alcohol abuse among young people in Zimbabwe: A crisis of morality or public health problem. SSRN Electronic Journal.
Maraire, T., Chethiyar, S. D. M. and Jasni, M. A. B. 2020. A general review of Zimbabwe’s response to drug and substance abuse among the youth. International Journal of Social Sciences, 6(2): 625-638.
Medabesh, A. and Khan, A. J. 2020. Financial Assets and the preference of salaried class Assessees. Journal of Xi’an University of Architecture & Technology, 2(10), 2446-2450.
Modigliani, F. and Brumberg, R. (1954). Utility analysis and the consumption function: An interpretation of cross-habits in rural Zimbabwe: Case of Umzingwane district. East African Scholars Journal of Economics, Business and Management, 4(9), 194-200.
Nayak, S. 2013. Determinants and pattern of saving behavior in the rural western odisha (Doctoral Thesis). National Institute of
Technology, India.
Obi-Egbedi, O., Alawode, O. and Soneye, A. 2014. Savings determinants among rural households in Southwest Nigeria, World Rural Observer, 6(4):6-11
Praba, R. S. 2016. An empirical study on gender difference in the Investment pattern of retail Investors. Acme Intellects Journal of Research in Management, Social Sciences and Technology, 14 (14).
Shukla, N. S. (2016). Investment preference of working women of north gujarat region. International Journal for Scientific Research & Development (IJSART), 2(2).
Sreepriya, R. and Gurusamy, P. 2013. Investment pattern of salaried people: A study in Coimbatore district. International journal of Scientific Research, 2(1). 114-115.
Syed, H., Nigar, S. and Ullah, S. 2017. An analysis of household saving and investment behavior among different income groups in urban area of district Peshawar. Ibusiness, 9(4), 188-202.
Thaler, R. H. and Shefrin, H. M. 1981. An economic theory of self-control. Journal of Political Economy, 89(2), 392-401. The Constitution of Zimbabwe. 2013.Accessed on: https://www.veritaszim.net/constitution.
Tirupathi, T. and Ignatius, A. 2013. A study on preferred investment avenues among salaried peoples with reference to Namakkal Taluk, Tamilnadu. Trends and Challenges in Global Business Management, 90-94.
UNODC. 2018. United Nations Office on Drugs and Crime World drug report. Available from: https://www.unodc.org/res/wdr2021/field/WDR21_
Zeleke, A. T. and Endris, A. K. 2019. Household saving behavior and determinants of savings in financial institutions: The case of Derra District, Oromia Region,
