Analysis of factors influencing Personal Financial Planning among salaried employees in selected Banks in Kitwe, Zambia

Abstract

Personal financial planning is fundamental to everyone and it encompasses a range of activities, from budgeting and savings to investment decisions and debt management. This dissertation investigates the factors influencing personal financial planning among salaried employees in selected banks in Kitwe, Zambia. The study explores socioeconomic factors, financial literacy and education, income levels, expenditure patterns, and barriers to effective financial planning. A quantitative research approach, utilizing a descriptive design, was employed. The population comprised 86 staff members, and a purposive sampling technique determined the sample size using the Cochran Sample Size formula. Data was collected through questionnaires, and reliability was assessed using Cronbach's Alpha. The findings reveal that socio-economic factors and financial literacy significantly influence personal financial planning, while income levels and expenditure patterns, as well as barriers and constraints, showed weaker statistical significance. Mean scores were interpreted using a scale, and a comparative analysis with existing studies provided contextual insights. While this study cannot generalize to the wider population, the research contributes to the broader discourse on financial literacy and underscores the importance of context specific interventions in fostering effective personal financial planning. The study recommends the need for tailored educational initiatives for financial literacy, integrate programs into school curricula, encourage employer-based programs, and offer targeted support addressing specific challenges. Key Words Personal Financial planning, Financial Literacy, social economic factors