Abstract:
In order to improve our understanding of personal finance behaviour among
formal sector workers, this study sought to examine the impact of Financial
Knowledge, Financial Attitude, Locus of Control, Descriptive Norm and
Financial Self-Efficacy on Financial behaviour. Additionally, the study
observed the effects of Income, Age and Family Support as moderators on the
relationship between Financial Behaviour intention and Actual Financial
Behaviour. The research employed the reasoned action approach framework
by Fishbein and Ajzen (2010). A total of 406 respondents working within the
formal sector organisations in three districts of Ghana was analysed using PLS
SEM. Questionnaires were used in the data collection. The study results
revealed that Financial Knowledge, both perceived and actual, exhibit
different impacts on Financial Attitude and Financial Self-Efficacy of formal
sector workers. Additionally, it was observed that Perceived Financial
Knowledge, Financial Attitude, and Locus of Control had a significant
positive relationship with Financial Behaviour Intention. The assertion that
Actual Financial Knowledge and Income influence Financial Behaviour was
not supported. However, Income moderated the Intention-Actual Financial
Behaviour relationship significantly. Family Support as a moderator also
depicted a negative effect on the relationship between Intention and Actual
Financial Behaviour. It was recommended that financial education must focus
on developing good financial attitudes and beliefs to enhance the needed
behavioural change.
