Financial Literacy and Personal Financial Management among Finance Managers of Insurance Companies in Kenya

Abstract

Personal finance management is important so that people can manage personal finances and make informed financial and economic decisions. People with weak personal finance abilities, on the other hand, are vulnerable to financial stress, which can harm their physical and mental health. The purpose of this study was to evaluate the association between financial literacy and personal financial management among Kenyan insurance company finance managers. The specific goals of this study were to determine the association between level of education, course specialization, employment experience, and personal financial management among finance managers in Kenyan insurance businesses. The family resource management model, social learning theory, rational choice theory, and expectation theory of motivation were all used to drive the research. To meet the research aims, a descriptive research approach was adopted. In Nairobi, Kenya, the target population consisted of 53 licensed insurance businesses. The study specifically targeted financial managers from insurance businesses. As a result, the unit of observation for this study was constituted by a total of 53 respondents. Because the target population is tiny, this study used a census method. Questionnaires were sent physically to the respondents. This study used descriptive statistical analysis, including frequency, percentage, mean, and standard deviation, to understand the nature of the variables under study. Further, objective one and two were analysed using one way analysis of variance test. The third objective was analysed using regression analysis to establish a connection between work experience and personal financial management. The study adhered to ethical standards including disclosing the intent of the study to the respondents as well as guarantee of confidentiality. The study found that a significant relationship existed between level of education and personal financial management among finance managers of insurance companies in Kenya. However, among finance managers of insurance businesses in Kenya, there was no significant association between field categorization and personal financial management. The study also discovered a positive and statistically significant association between employment experience and personal financial management. According to the report, the majority of finance managers were educated. In addition, the study concluded that most insurance companies specialized in finance and accounting. In addition, most finance managers had more than six years in paid in jobs. The study recommended that insurance managers should look for finance managers with good financial knowledge so as they can be able to manage finances. In addition, the insurance companies’ management should encourage their finance managers to seek more knowledge on financial management from books and other sources.