Impact of substance abuse on savings and investment behaviour of youths in Zimbabwe: Case of Gweru high density suburbs

Abstract

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.