Financial Literacy and Financial Management of the Youth Enterprise Development Fund in Konoin Constituency Kenya
Abstract
Financial literacy is low both globally and locally. This is due to the fact that many people do
not possess the necessary skills to manage their finances effectively leading them to mistakes
that can otherwise be avoided. Financial illiteracy is mainly indicated by the rising level of
personal debt and lower personal saving rates among individuals. Financial literacy is a very
vital skill in the management of finances for it helps an individual avoids financial mistakes
which in turn lead to financial independence. A cross sectional descriptive survey technique
was adopted to find out the financial Iiteracy and financial management of the youth enterprise
development fund in Konoin constituency. A representative sample of 250 respondents was
selected using random sampling technique. The study used primary data which was collected
from the respondents using a detai led questionnaire which had both open ended and close
ended questions. Data was then analyzed by using regression analysis and descriptive statistics
which was presented using mean, correlation, standard deviation and percentages. The analysis
was then visually displayed using graphs, frequency tables and charts. Based on the findings
financial literacy had a direct relationship with financial management with many youth lacking
the basic skills in financial planning practices. The level of financial literacy among the youth
was low which was attributed by low level of financial knowledge, less exposure to managing
finances and also their education levels. It was also found out that parent and peers played a
crucial role in transferring knowledge to the youth. The study recommends that government
should come up with more intensive financial literacy programs where the youth are trained
prior to receiving the funds these will greatly combat losses and the youth will be able to deal
with the complex financial system which will greatly contribute to growth of the economy and
achievement of vision 2030.
Citation
Kibui, M(2013).Financial Literacy And Financial Management Of The Youth Enterprise Development Fund In Konoin Constituency Kenya.Publisher
University Of Nairobi