Exploring the savings and investment knowledge and habits of formal and informal sector workers in Ghana: evidence from asuogyaman district

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The study sought to investigate the savings and investment knowledge and habits of formal and informal sector workers with particular focus on workers in the Asuogyaman District. To achieve the set objectives, the study employed the quantitative approach based on the descriptive survey design and obtained primary data from a sample size of 200 workers. The dataset was analyzed using both descriptive analysis (frequency, percentages, and means) and inferential analysis (chi square test). The study established that formal and informal sector workers possess medium and low levels of knowledge respectively on both savings and investment. It was also discovered that workers prefer low risk investment assets namely treasury bills and secured deposits to other high-risk marketable securities. It was again found that workers are predominantly motivated to invest in order to buy real assets, to grow wealth and to safeguard financial independence on retirement. The study established that there is no significant association between the sector of worker and amount of money saved from disposable income but a significant association is found between the sector of worker and the preference for financial investment assets. A conclusion is made that although sector do not influence the level of savings by workers, it has influence on preference for financial asset which may be due to the disparity in the level of knowledge possessed by workers belonging to the two extremes on savings and investment. Hence, relevant stakeholders (such as banks, financial institutions, local and national trade associations, etc.) Must develop strategies to boost the financial knowledge of workers, especially those in the informal sector, to help boost their knowledge on savings and investment which would help to increase their interest in savings and investment, thus, enhancing capital accumulation for deficit units in the economy.
A thesis submitted to the institute of distance learning, Kwame Nkrumah university of science and technology, in partial fulfilment of the requirements for the award of Master of science (accounting and finance)