Financial Literacy and Financial Behaviour of Postgraduate Students: The Moderating Effect of Financial Strain.

No Thumbnail Available
Date
2023
Journal Title
Journal ISSN
Volume Title
Publisher
KNUST
Abstract
The study aimed to assess the levels of financial literacy and financial behavior, explore the relationship between financial literacy and behavior, and understand how financial strain moderates this relationship. A cross-sectional survey with 400 master's students from kunst was conducted, using a structured questionnaire to collect data on demographics, financial literacy, financial behavior, and financial strain. The findings indicate a diverse range of financial literacy levels among participants. While fundamental concepts like understanding ratios, investment, time value of money, and inflation impact received correct responses, there were mixed results in areas like simple interest, risk, and diversification. Overall, the study suggests that kunst master's students possessed a reasonable level of financial literacy. In terms of financial behavior, participants demonstrated positive trends, such as responsible bill payment and credit management. However, some areas, like cutting down on spending and debt record keeping, displayed lower scores. Furthermore, the study revealed a significant positive relationship between financial literacy and financial behavior. Financial literacy was associated with favorable financial behaviors, while financial strain had a negative impact on financial behavior. The moderating effect of financial strain on the relationship between financial literacy and behavior indicated that the influence of financial literacy on behavior is weakened by high levels of financial strain. Based on the findings the study recommends that educational institutions and financial organizations should collaborate to develop comprehensive financial literacy programs, focusing on both theoretical knowledge and practical application, to empower individuals with informed financial decision-making skills. Policymakers should prioritize the integration of financial education initiatives into national strategies.
Description
A thesis submitted to the institute of distance learning, Kwame Nkrumah university of science and technology in partial fulfilment for the award of master of science in accounting and finance
Keywords
Citation