How financial self-efficacy and financial attitudes affect saving behavior among Sacco members: an empirical study in Kericho County

Date
2021
Authors
Chepngetich, Michelle
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Strathmore University
Abstract
This paper seeks to examine the impact of financial attitudes and financial self-efficacy on saving behavior. It investigates how financial attitudes affect the saving behavior, the relationship between financial self-efficacy and saving behavior of Sacco members in Kericho county, and the moderating effect of financial self-efficacy on the relationship between financial attitudes and saving behavior according to Sacco members. The study was conducted in Kericho county in November and December 2020, with a focus on Imarisha Sacco and Ndege Chai Sacco. The data was collected by issuing questionnaires. Ordinal logistic regression was employed to derive the .I results. The findings from the study are as follows: financial attitudes and financial self-efficacy have a positive significant impact on saving behavior among Sacco members in Kericho county and financial self-efficacy has a positive significant moderating effect on the relationship between fmancial attitudes and saving behavior. The results showed that 7.64% of saving behavior is explained by fmancial attitudes and 12.90% is explained by financial self-efficacy. The findings justifY the relevance of financial attitude and financial self-efficacy in the explication of saving behavior as it opens further discussions on the intricacies of financial behavior which helps individuals check their financial management effectively and intellectually.
Description
A research project submitted in partial fultillment for the award ofBachelor of Business Science Financial Economics
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