The Antecedents of Financial Behaviour Intention among formal sector workers

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International Journal of Research and Innovation in Social Science (IJRISS) | Volume V, Issue IX, September 2021 | ISSN 2454–6186

The Antecedents of Financial Behaviour Intention among formal sector workers

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Philomina Araba Sam, Professor Siaw Frimpong, Professor Stephen Kendie
School of Business, University of Cape Coas, Ghana

Abstract: To improve our understanding of personal finance behaviour of workers, the current study sought to examine the impact of financial knowledge, financial attitude, locus of control, descriptive norm and financial self-efficacy on financial behaviour intention. The research employed the reasoned action approach framework by Fishbein & Ajzen, (2010), with formal sector workers in three districts of Ghana as the population. Questionnaires were used to collect data and analysed using SmartPLS. The results of the study revealed that perceived financial knowledge, financial attitude, descriptive norm and locus of control had a significant positive relationship with financial behaviour intention. The assertion that actual financial knowledge and financial self-efficacy influence financial behaviour was not supported. It is recommended that financial education focuses on developing good financial attitudes and beliefs to enhance behavioural change.

Keywords: financial knowledge, financial attitude, locus of control, financial behaviour


The focus on knowledge and skills required to make sound financial decisions by individuals has gained prominence in recent years. This phenomenon has led to the rise in financial education in many countries because it is believed that a financially well-informed person will be in a better position to make good decisions about the general management of financial resources available to the family and ensure financial security and economic wellbeing (Hilgert et al., 2003).
Financial behaviour has been explained to cover different aspects of a person’s money management practices. Financial behaviour of individuals refers to the spending and saving habits of people such as living on a monthly budget, having monthly savings, creating emergency funds and retirement packages, investing excess cash, and monitoring financial situations periodically (Hilgert et al., 2002; LaBorde & Mottner, 2013). Financial behaviour in the context of this study is seen as workers’ financial behaviour concerning planning and budgeting, savings, and general daily cashflow management. Individuals are faced with financial decisions every day, and their decisions taken today will determine their financial strength tomorrow (Idris et al., 2015). Individuals who practice proper financial behaviours stand in a better position to meet future financial obligations and emergencies (Narges & Laily, 2011).
Human behaviour is based on certain beliefs, desires, and temperaments developed from the social,