Financial literacy and personal financial decisions of local government staff at Prestea Huni-Valley municipal assembly in the Western Region

Abstract

Due to the contemporary evolution in the financial markets, it has become increasingly indispensable for individuals to be more conversant and competent in handling their finances. This calls for financial literacy study to examine how people respond to this financial market complexity and sophistication. This study was conducted to assess the level of financial literacy and personal financial decisions among Local Government Staff of the Prestea Huni-Valley Municipal in the Western Region. A sample of 277 staff using stratified sampling technique was used. A self-administered questionnaire was used to collect the data and the analysis done using the Chi-Square Test of Independence. The results indicated that with the exception of division there was low understanding in the economic and financial variables used as correct scores were below averages in the areas of percentages, compound interest, inflation and time value of money. The study thus concluded that financial literacy among the respondents sampled was low. The study found that there was no relationship between financial literacy and gender or sex as none of the variable were significant. However, there was an association between financial literacy and level of education. Again, though most employees think a lot about their retirement and expected sufficient retirement amounts, it cannot be realized from their gratuities. It is recommended that the Office of the Head of Local Government Service organize financial literacy education for staff in savings and investments. Staff should also take their personal retirement planning seriously. This would advance financial literacy and increase staff involvement in the financial markets and enhance their wellbeing and work productivity.