The Role of the Media in Promoting Financial Literacy in Uganda: A Case Study of New Vision Newspaper -( Kampala).

ABSTRACT The study is about tlie role of the media in promoting financial literacy in Uganda taking New Vision as the case study. The study was guided by the following questions- What are causes of financial literacy among people in Uganda? What are the solutions put fo1ward to reduce financial literacy in Uganda? Describe the different strategies put forward to fight financial literacy in Uganda. What are the roles of the media in promoting financial literacy in Uganda? The population under study comprised of 80 respondents. The study adopted random sampling technique to determine the sample population size. The data was collected using questionnaires. It was then edited and analyzed by use of Statistical Package for Social Sciences (SPSS) software using descriptive statistics indexes such as mean, percentages and frequency distribution method. The data was presented in the form of tables and figures according to the research questions. The study recommended that the Governments, donors and financial service providers should support the scale-up of savings groups, for example by working with mobile companies to develop enabling teclmologies such as group pin codes. Govennnents should recognize, rather than regulate community savings groups and incorporate them into long-term national financial inclusion strategies. Governments should work with financial service providers to ensure that savings groups can access formal financial institutions, as has happened in India where banks are mandated to open accounts for community savings groups. Banks and microfinance specialists I should use Banking on Change as an example of how to design a viable 'financial linkage' model that can be replicated by other banks and informal savings communities. This should be supported and promoted by donors and international financial institutions. The r;sbrcher suggests __ further research on evaluation of the television m elimination of financial literacy. In addition, future researchers can look at the role of radios in the promotion of banks against financial literacy.

TABLE OF CONTENTS

DECLARATION ................................................................................................................................ i

APPROVAL .................. '. .................................................................................................................. iii

ACKNOWLEDGEMENT ................................................................................................................ iv

ABSTRACT··············································································································,························ X

TABLE OF CONTENTS ...................................................................................................................... v

LIST OF TABLES .......................................................................................................................... viii

LIST OF ACCRONYMS ................................................................................................................. ix

CHAP(.ER ONE: BACKGROUND OF THE STUDY .................................................................... 1

- 1.0 Introduction ................................................................................................................................... 1

1.1 Background of the study ................................................................................................................ 1

1.2 Problem statement ......................................................................................................................... 7

1.3 Objectives of the study ................................................................................................................... 8

1.3.1 Major objective of the study ........................................................................................................ 8

1.3.2 Specific objectives ...................................................................................................................... 8

1.4 Research question .......................................................................................................................... 8

1.5 Scope of the study .......................................................................................................................... 8

1.5.1 Geographical scope ..................................................................................................................... 8

1.5.2 Content scope ............................................................................................................................. 8

1.5.3 Sample size ................................................................................................................................. 8

1.5.4 Time scope ....................... , ............................................................................................. : ........... 9'

1.6 Significance of the study ................................................................................................................ 9

I. 7 Definition of the key tenns ........................................................................................................... I 0

CHAPTER TWO: LITERATURE REVIEW ................................................................................ 11

2.0 Introduction ................................................................................................................................. 11

2.1 Definition of financial literacy ..................................................................................................... 11

2. 2 Theoretical Review ............................................................... : ..................................................... 11

2.2.1 Learning Theory ....................................................................................................................... 11

2.2.2 Goal Setting Theory .................................................................................................................. 12

2.2.3 The Expectancy Theory of Motivation ...................................................................................... 12

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2.3 Determinants of Finances among people ...................................................................................... 13

2.4 Empirical Review ........................................................................................................................ 16

2.5 The role of media in promoting.financial literacy ............................................................... , ......... 19

' 2.6 Snmmary of Literature Review .................................................................................................... 19

CHAPTER THREE: RESEARCH METHODOLOGY ................................................................. 21

3.1 Introduction ................................................................................................................................. 21

3 .2 Research Design .......................................................................................................................... 21

3.3 Target Population ........................................................................................................................ 21

3.4 Sampling Technique and Sample Size .......................................................................................... 21

3.5 Data Collection Procedure ........................................................................................................... 22

3.5.1 Reliability of Research Instruments ........................................................................................... 22

3.5.2 Validity of Research Instruments .............................................................................................. 22

3.6 Data Analysis .............................................................................................................................. 23

CHAPTER FOUR: DATA ANALYSIS, RESULTS AND DISCUSSIONS ................................... 24

4.1 Introduction ................................................................................................................................. 24

4.2 Response Rate ............................................................................................................................. 24

4.3 Data Reliability ............................................................................................................................ 24

4.4 Descriptive Statistics .................................................................................................................... 25

4.4.1 Name of Organization ............................................................................................................... 25

4.4.2 Gender of the Respo,1dents ........................................................................................................ 26

4.4.3 Age of the Respondents ............................................................................................................ 26

4.4.3 Age of the Respondents ..................................................................................... ; .. ······ .............. 26

4.4.4. Level of Education .................................................................................................................. 27

4.4.5 Area of Specialization ............................................................................................................... 27

4.4.6 Non-financial Training .............................................................................................................. 27

4.4.7 Number of Years Worked ......................................................................................................... 28

I 4.4.81epartment of Work ................................................................................................................. 29 · .. 4.4.9 Lev~f in the Organization's Hierarchy ....................................................................................... 30

4.4.10 Monthly Salary of the Respondents ......................................................................................... 30

4.5 Management of Finances ............................................................................................................. 31

4.5.1 Savings Plan ............................................................................................................................. 31

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4.5.2 Proportion of Saving ................................................................................................................. 31

Table 4.13: Propo1tion of Saving ....................................................................................................... 31

4.5.3 Investment Plan ........................................................................................................................ 32

4. 5.4 Level of Investment ................................................................................................................. 32

4.5.5 Level of Satisfaction .......................................................................................... ! ...................... 32

4.5.6 Personal Investment .................................................................................................................. 33

4.5.7 Propensity to Invest .................................................................................................................. 33

4. 5.8 Personal Financial Management Rating .................................................................................... 34

4.7 Djsrussion of Research Findings .................................................................................................. 35

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CHAPTER FIVE: SUMMARY, CONCLUSIONS AND RECOMMENDATIONS ..................... 37

5.0 Introduction ................................................................................................................................. 37

5.1 Summary of the Findings ............................................................................................................. 37

5.2 Conclusion .................................................................................................................................. 38

5.3 Recommendations to Policy & Practice ........................................................................................ 38

5.4 Suggestions for Further Research ................................................................................................. 39

REFERENCE .................................................................................................................................... 41

APPENDIX: Questionnaire ................................................................................................................... 43