Demography, Financial Literacy, and Financial Behaviour of Employees in the Financial Sector of Ghana

Abstract

The study investigated the relationship between demographic variables (educational qualification, income level, and work experience) and financial literacy on one hand, and the relationship between financial behavior and financial literacy on the other hand. The study draws on a sample of 103 respondents who are employed in the financial sector of Ghana. The study made use of One –Way Analysis of variance (ANOVA) and Univariate regression in testing the hypotheses formulated. The results of the ANOVA test indicated that differences in the educational qualification of employees in the financial industry do not significantly account for variations in their level of financial literacy. Nonetheless, the study revealed that differences in income level, and the number of years of work experience are significantly associated with the level of financial literacy. In addition, the results of the univariate regression revealed that financial literacy has a significant positive relationship with financial behavior. Considering the importance of the subject matter, the study recommended that employees continually work on improving their financial literacy through continuous professional development programs such as workshops, training among others. Again, future studies are hereby directed to adopt the qualitative approach in order to explore the subject matter in-depth.