Financial literacy and the preference for non-transactional cash holdings in Morocco
A microeconometric analysis
DOI:
https://doi.org/10.23882/emss26376Keywords:
financial literacy, non-transactional cash holdings, financial accessibility, household finance, MoroccoAbstract
Despite progress in expanding access to banking services and modernizing the financial system, cash remains widely held in Morocco, including for reasons other than day-to-day transactions. This article examines the role of financial literacy in the preference for holding cash for non-transactional purposes in Morocco.
The study is based on data from a questionnaire survey administered to 752 individuals involved in their household’s financial decisions and employs an ordinal logistic regression. The results show that financial literacy does not have a statistically significant effect on the preference for non-transactional cash holdings. This finding suggests that holding cash beyond current payment needs cannot be explained solely by individuals’ level of financial knowledge but is also linked to other factors related to socioeconomic profiles and access to financial services.
From a scientific perspective, this research contributes to the literature on household finance, financial inclusion, and the demand for cash in emerging economies. From a managerial and public policy perspective, it suggests that efforts to reduce cash dependence should go beyond financial education alone and also include improving financial accessibility, building trust in formal financial services, and adapting financial inclusion policies to the realities of households.
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