Personal Finance Behaviour among Formal Sector Workers in Ghana

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.