Journal of Business & Financial Affairs

Determinants of Personal Financial Management among Debre Markos University Staffs, Ethiopia

Abstract

Beza Muche Teka

Today, personal financial management behavior has received an increasing concern of researchers because failure in managing an individual’s finance can lead serious long-term consequences not only for that person but also for the society. Therefore, the objective of the study is to investigate the determinants of personal financial management among university staffs. Explanatory and descriptive quantitative cross-sectional study was employed to investigate the determinants of personal financial management. A total of 353 staffs were used as a sampling unit and proportional stratified random sampling was used to select the required sample size. Primary data was collected using structured survey questionnaire. The survey instrument was developed by integrating the constructs from family resource management model and theory of planned behavior together with financial anxiety, self-control, income and age. Multiple linear regressions was used to analyze the collected data and the findings revealed that financial knowledge and self-control have significant positive effect on individual’s personal financial management behavior whereas subjective norm has significant negative effect. However, financial attitude, financial anxiety, income and age have no significant effect on individuals’ personal financial management behavior. Hence the researcher recommends that in order to educate the general public about personal financial management financial institutions and higher educational institutions should provide personal financial management education using different channels such as seminars and workshops