Abstract:
The study examined the relationship between financial literacy and personal
savings among individuals in Adeiso. The study used descriptive design in the
quantitative approach. Stratified sampling technique was used to select 300
respondents (nurses, teachers and SME operators) in Adeiso of which questionnaires
were administered to them. Furthermore, the data was analyzed with the help of
statistical software known as Statistical Product for Service Solution (SPSS version
21.0) and interpreted by using percentages and frequencies and presented with the
aid of tables, graphs and charts. It was found out that, generally, financial literacy of
the respondents was moderate. The financial literacy level of nurses was very weak
in terms of knowledge in retirement planning, investment and savings and borrowing.
Teachers at Adeiso has weak knowledge in insurance and SMEs operators had weak
knowledge in retirement planning and insurance. Surprisingly, all the respondents
had weak knowledge in insurance. Teachers have high level of financial literacy as
compared to nurses and SMEs operators. Only increment in the number of children
reduces financial literacy of the respondents. Moreover, there was a positive
significant relationship between sex, educational status, marital status, personal
income, financial literacy and savings behavior. However, there was a weak negative
relationship between age and savings behavior. The study therefore, recommends that
people without business educational background such as science and humanities
should be encouraged to learn more on personal financial management and others.
Also, family planning methods should be encouraged among the youth in order to
control the number of children of people since it affect savings negatively.
