Effect Of Financial Literacy on Personal Financial Planning: A Case of Capital Market Authority Employees.
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Date
2015-11
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Daystar University School of Business and Economics
Abstract
Due to economic conditions being very dynamic in the world, individuals‟ are now in charge of their own financial well-being. Financial literacy is the possession of knowledge and understanding of financial matters. The objectives of the study were: to establish the level of financial literacy of Capital Market Authority employees, to investigate the effect of financial literacy on personal financial planning of Capital Market Authority employees and to find out the relationship between demographics characteristics and personal financial planning of Capital Market Authority employees.
The study used primary data collected from semi-structured questionnaires. Quantitative data was analyzed using descriptive statistics. The study also used multiple regression analysis to establish the effect of financial literacy on personal financial planning. The study findings indicated that financial literacy level, effect of financial literacy and demographics characteristics affecting personal financial planning among the respondents. The results show that financial literacy leads to better personal financial planning. Additionally, individuals who engage in positive financial behaviours, such as spending less than their own income, setting an emergency fund, using credit wisely or looking for financial advice, are less likely to experience severe financial difficulties. The research recommends that the government should come up with education programs that help the financial illiterate people to gain more knowledge about personal financial planning. Similarly, there is need to replicate the study among other organizations and over time to make the findings more representative and objective.
Description
Master Of Business Administration
In Finance
Keywords
Financial Literacy, Personal Financial Planning, Capital Market Authority Employees.
Citation
Ngugi.L. (2015). Effect Of Financial Literacy on Personal Financial Planning: A Case of Capital Market Authority Employees.Daystar University School of Business and Economics