Assessing The Influence Of Behavioural Factors On Employees’ Personal Financial Management Decisions. A Case Study Of Staff Of International Oils And Fats Limited

ABSTRACT

The study was undertaken to analyze the factors influencing personal financial management decisions of 200 employees of International Oils and Fats Ltd. Specific objectives that motivate the study were to identify the factors that influence financial management decisions, examine the mistakes of employees concerning their personal financial habits and to examine the challenges that employees face in applying their financial knowledge in daily personal financial management decisions. Descriptive research methods were used in this study to assess factors influencing Personal Financial Management Decision. Simple random sampling was used to select 200 participants consisting of employees of International Oil and Fats ltd in Techiman in the Brong Ahafo Region. Survey questionnaire was used to generate data for the study. Analysis of data was done using descriptive analysis. Data collected revealed that people financial behaviours such as spending beyond budget influence their financial decisions. Employees are unable to spend as budgeted. Financial knowledge of people such as investments influenced their financial decisions and change in prices, family needs, instability of markets, lack of proper record keeping, nature of expenditure, inflation and spend of money in advance were the challenges people faced in applying financial knowledge in daily personal financial management decisions. The study recommended that all employees should undertake periodic programmes such as seminars, workshops, discussions and reading of books related to personal financial management and so on to enlighten them of their financial issues since the study revealed a shortfall in that area.