Socio-economic Factors Influencing Financial Literacy Among University Students In Kenya: An Empirical Approach

Abstract

Most students exercise financial independence after they enrol in a university.That is when their parents or guardians allow them to make their own financial decisions. As many of the University scholars reside away from home; they are left with financial decisions to make which depends on the individual’s financial literacy (knowledge). Financial literacy can be defined as an individual’s capability to make informed choices concerning financial planning, arrears, pensions and ways of accumulating wealth.The chief purpose of this study is to look at the socio economic factors influencing financial literacy in the midst of scholars in Kenya with special focus to University of Nairobisinceit has a high population of students with a wide diversity concerning background (both self and government sponsored) and the variety of courses taken.The specific objectives include; evaluating the effect of students’ financial experience on financial literacy amidst Kenyan university students; to investigate the consequence of students’ financial training on financial literacy among the students in Kenya; to explore the effect of students’ economic condition on financial literacy among them; as well as to investigate the influence of student’s family characteristics on financial literacy among university students in Kenya. Learning Theories, Keynesian Theory of Income and Behavioural Financial Theory have been employed to study university students’ financial literacy. This study will employ descriptive survey design; the design is the most appropriate for the empirical approach employed in this study. This research study will use stratified sampling to identify a model of 383 from the university’s student population.Data will be collected through self-administered questionnaire and later examined using descriptive statistics and regression analysis. The obtained results will be presented in the form of graphs and tables.Finally, conclusions and recommendations will be offered based on the outcome of the study.