| dc.description.abstract | Current economic conditions in the world over have raised serious concerns about
individuals’ financial security. Financial literacy is the possession of knowledge and
understanding of financial matters. The objectives of the study, was to establish the level
of financial literacy of Kenya Revenue Authority employees and establish the effect of
financial literacy on saving practices and social security planning of Kenya Revenue
Authority employees. The study used primary data collected from semi-structured
questionnaires. Quantitative data was analysed using descriptive statistics while
qualitative data was analysed using content analysis. Statistical Packages for Social
Scientists (SPSS Version 17.0) was used. The study also used multiple regression
analysis to establish the relationship between financial literacy and personal financial
management. The study findings indicated that financial literacy impacts to a great extent
on the financial management because financial education programs guide program
development and refinement. The programs to be developed will be aimed at increasing
the level of financial literacy on the aspects considered in this study which included
retirement planning, estate planning, management of credit and other liabilities, insurance
and tax planning.
The study findings indicate that generally financial literacy to a great extent affects
personal financial management among the respondents. However, most participants
considered retirement planning less important, were less aware of the effects of estate
planning, insurance planning and tax planning. The respondents also were less literate on
the effects of good credit and other liabilities hence making poor financial decisions on
this aspect of financial management.
The research findings imply that there is need to come up with elaborate and detailed
education programs to address the aspects that the respondents were less aware of and
less literate on that is; effects of estate planning, insurance planning tax planning and
effects of good credit and other liabilities. There is also need to replicate the study among
KRA employees across the country, other organisations and over time to make the
findings more representative and objective. | en |
