Abstract: We live in troubled economic times and financial literacy is increasingly becoming, not only a national concern, but also a global concern. Financial markets have increasingly been deregulated with rapid growth of financial products being experienced across many financial markets. Increase in inflation and diminishing of getting jobs. JKUAT students are on transition to be on their own after their years in university. In this regard, it is becoming increasingly important for the students to become aware of their personal finances so as to ensure them and their families are financially secure in the long run. This study has focuses on role of financial literacy on financial decision among students of Jomo Kenyatta University of agriculture and technology. The objectives of the study were as follows; To determine the effect of debt management literacy on financial decision among students of JKUAT. To establish the effect of budgeting literacy financial decision among students of JKUAT. To find out how literacy on banking services affects financial decision among students of JKUAT. To examine the effect of book keeping literacy on financial decision among students of JKUAT. The targeted population which represented the sampling frame are the students of JKUAT in human resource department who were on their final semesters in their courses in all bachelor programs approximated to be 500 students. This population was selected due to its accessibility and proximity to the researcher. Both descriptive and inferential statistics was adopted for the study. The quantitative data was analyzed by using descriptive statistics which included frequency distribution tables and measures of central tendency (the mean), measures of variability (standard deviation) and measures of relative frequencies. the inferential statistics included a regression model which established the relationship between variables. Data was analyzed by the use of a statistical software SPSS version 20. Data was presented in the form of tables and charts. From the results, it is evident that some of the benefits associated with financial literacy are financial satisfaction, better management of personal finances, substantial returns, effective money management, budgeting and record keeping, and effective retirement planning and debt management. These benefits would help individuals make informed personal financial decisions. It is also a call for all the stakeholders within the financial sector and without to continuously exploits financial literacy for maximum results of personal financial decisions. The survey demonstrates that financial constraints, lack of literacy programs, individual commitments, inaccessible venues, culture and beliefs and lack of sponsorship are impediment to the participation in financial literacy programs. Nonetheless, the banks and other financial institutions need to go the extra mile in suppressing these factors so as to improve and increase participation of financial literacy programs within their memberships. The survey has shown that the adoption of strategies such as better accessibility of financial literacy program venues, use of online platform, sponsorship, incorporation of financial literacy course in the school curriculum, use of practical approaches in disseminating financial literacy information and flexible scheduling will help enhance participation in financial literacy programs. JKUAT and others should embrace the use of these mechanisms in order to impart up to date financial knowledge to their members. This research was designed to determine the role of financial literacy on financial decisions made by JKUAT Students. After reviewing the varied responses, gaps which were outside the scope of this research have emerged. This research was only focused on Jkuat Students hence locking out others that are in the same institution. Future research should evaluate whether members of other JKUAT would exhibit similar results and findings as far as the responses were concerned. In addition, similar research could be carried out with a focus on the management of the JKUAT to find out their perspective on the specific objectives of this research.
Keywords: Financial, Literacy, Financial Decision.
Title: ROLE OF FINANCIAL LITERACY ON FINANCIAL DECISION AMONG STUDENTS OF JOMO KENYATTA UNIVERSITY OF AGRICULTURE AND TECHNOLOGY
Author: MUKIRI ERICK PETER, DR SAMMY KIMUNGUNYI
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
Research Publish Journals
