Effects of Financial Literacy on Saving Behaviour of Small Scale Enterprises in Dessie,Ethiopia

Abstract

This study dealt with the effect of financial literacy on saving behavior in Dessie city administration, Ethiopia and specifically focused on examining the main determinant factors of financial literacy and the level of financial literacy of small scale workers. Primary data collected using a questionnaire in both open and close ended forms. Secondary data obtained from the main office recording, published financial literacy reports concerning on saving behavior and other available documents and journals in the online.897 employees who are working in Dessie City Administration have been used as population size. From this population, 277 employees were taken as a sample and stratified random sampling was employed. Both explanatory and descriptive research design were engaged. Data analysis was made by using SPSS to obtain both inferential and descriptive statistics. The results of the study were presented in regression, tables, graphs and charts. The finding of the study shows that the most influential determinants of financial literacy are socio-demographic factors such as, Education, Age, Income and employment status. However,education, income and financial literacy has significantly affect saving. Although, Education has an adverse effect on saving behaviour.

Keywords: Financial literacy, Financial skill, Financial knowledge, Saving behaviour

DOI: 10.7176/DCS/9-1-04

Publication date:March 31^st 2024