Financial literacy and financial decisions among adults in Ghana; evidence from sekondi-takoradi metropolis

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The objective of the study was to provide evidence of financial literacy and financial decisions among adults in Ghana, specifically the Sekondi takoradi metropolis of the western region. A cross-sectional research design with a quantitative research method was employed. A sample size of 100 was used. Convenience sampling techniques was used in selecting the respondents. Data was gathered with the help of a questionnaire designed by the researcher. Analysis was carried out with Statistical Packages for Social Sciences (SPSS). According to previous studies, level of financial literacy of a respondents does not affect his/her savings behaviour. A similar result was found for that of financial literacy and investment behaviour in this study. That is, the level of financial literacy of respondents does not have effect on financial decisions. The study also revealed that with the exception of age distribution, none of the demographic variables statistically influences savings habit. Additionally, the study indicates that with the exception of age distribution and household size, the other demographic variables do not statistically influence investment behaviour. This shows that only age distribution and household size of respondents have significant relationship on investment behaviour of people according to the data available, whiles for savings decisions, only age distribution is statistically significant in that regard. Finally, the results also indicate that the respondents are of the view that some of the major barriers to financial literacy are business news being often technical and difficult to understand by people, financial institutions professionals not often taking enough time explain financial staff, and finally, schools also not educating people well outside the business studies to be financially literate.
A thesis submitted to the department of accounting and finance, Kwame Nkrumah university of science and technology in partial fulfillment of the requirement for the degree of master of finance school of business.