EFFECT OF FINANCIAL LITERACY ON PERSONAL FINANCIAL MANAGEMENT IN KENYA AIRPORTS AUTHORITY
Abstract
The main focus of the study was to evaluate the effect of financial literacy on personal financial management in Kenya Airports Authority. The specific objectives are to establish the effect of financing knowledge, financial behaviour and financial attitude on personal financial management in Kenya Airports Authority. The study used descriptive research design. The target population comprised of 398 employees at the Jomo Kenyatta International Airport. Questionnaires were used to obtain primary data in form of close-ended questions. Data analysis was done with the use of SPSS version 22 and presented quantitatively in form of percentages and mean. The study concluded that acquisition of financial knowledge promoted employees’ financial management and accountability to a greater extent. This study concluded that development of strong logical personal financial behaviors promoted individual’s financial management. Developing strong financial behaviour helped employees at JKIA in balancing their personal greed, optimism, fear, herd instinct, overconfidence and tendency about previous experience. The study concluded that personal financial planning has a significant positive effect on financial management behaviour. Ensuring that employee’s acquire the basics of money management skill is absolutely critical to making smarter financial decisions. The management of JKIA through their human resource department must help their staff in understand the basic financial principles. The study recommended that management of JKIA through its structure must create a conductive environment where employees can create responsible financial behaviour so that the staff has preparation and knowledge to manage their finance. The management of JKIA through their human resource department must help their staff develop the right financial altitude to capture and understand all overall impacts of financial decisions. Through financial literacy programmes, their important to ensure that JKIA employee are equipped with financial planning skills. Financial planning skills are an important contributor in achieving the success or failure of financial aspects. A good financial planning skill affects good behaviour. Good and appropriate financial planning skills can be started by applying a good and proper financial attitude as well.
Key Words: financing knowledge, financial behaviour, financial attitude, personal financial management
CITATION: Lang’at, M. C., & Abdullah, A. (2019). Effect of financial literacy on personal financial management in Kenya airports authority. The Strategic Journal of Business & Change Management, 6 (3), 28 – 44.
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DOI: http://dx.doi.org/10.61426/sjbcm.v6i3.1294
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