Financial Literacy and Financial Planning Among Minersin Tarkwa

Abstract

ABSTRACT This study examined the impact of financial literacy on financial planning among miners in Tarkwa. The study also observed how demographic characteristics like marital status, work experience, income level, highest educational attainment, occupational status and gender of miners in Tarkwa influence their ability to plan financially. The study made use of primary data collected from 200 respondents via the distribution of questionnaires. Completed questionnaires were coded and uploaded into Statistical Package for Social Science (SPSS) for analysis. Graphs and descriptive statistics in the form of mean and standard deviation were used to describe the levels of financial planning among the respondents. Regression was used in order to test the impact of demographic variables on financial planning. Regression was also used to analyze the impact of financial literacy on financial planning. Data analysis using regression equation modelling was done in four main levels: Exploratory Factor Analysis (EFA), Reliability Test, Test of Normality, Fitness of the Model and finally, the significance of the coefficients. The results revealed that the level of knowledge regarding financial planning among miners in the Tarkwa Municipality is very high. The level of financial planning among miners in Tarkwa Municipality is also dependent on the highest education attained as well as the number of years spent in the organization.Furthermore, the study concluded that knowledge on financial investments and insurance can improve on the individual’s financial planning abilities. The study recommends the need for financial literacy programmes for the workers to improve their financial planning decisions