Abstract:
The study aimed generally to determine the scope of financial literacy and
personal financing by people in the Cape Coast Metropolis. Under subscription of
questionnaires led to 436 respondents from the cluster sampling method being
used in the analysis. This allowed the determination of the various components
and factors of financial literacy and personal finance. Factor analysis determined
which indicators from various scenarios responded to, described the relationship
between financial literacy and personal finance in the metropolis; as analyzed
with Pearson’s bivariate correlations method. Personal finance overall, showed
elements of savings, investments, financial planning for periods averaging three
months at a time and a conflict of financial advice sources between financial
professionals and friends and relatives but not individual’s self-efforts to acquire
relevant financial decision making knowledge. Results determined that financial
literacy and personal finance were generally low in the metropolis but that
financial literacy and personal finance components do translate into financial
literacy factors and subsequently into personal financing concerns. Relationships
were determinable under the categories of financial responsiveness, Short-term
spending tendency, spending tendencies generally, financial management, debt
responsiveness and economy-mindedness of price levels or inflation. This
researcher suggests building up self-learning efforts and individual self-reliance
for financial decision making as some of the recommendations with which to
improve financial literacy and personal finance in Cape Coast.
