Personal Financial Management Practices and Demographic Factors On Financial Wellbeing of Medical Doctors Employed in Public Hospitals Nairobi City County, Kenya
Zacchaeus, Kirui Cheruiyot
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Financial wellbeing is of great significant in levels of both personal and organizational. Medical doctors are among the well-salaried employees in Kenya. However, according to Kenya Medical Association 2017 financial information, it indicates that 70% of medical doctors employed under public hospitals in Nairobi City County Kenya are struggling financially in terms of meeting their day to day financial obligations. This study sought to determine the impact of financial knowledge on financial wellbeing of medical doctors employed in public hospitals Nairobi City County, to determine the effect of demographic factors on financial wellbeing of medical doctors working in public hospitals Nairobi City County, to establish the effect of financial disposition and budgeting habits on financial wellbeing of medical doctors employed in public hospitals Nairobi County, to find out the effect of financial saving behavior on financial wellbeing of medical doctors employed in public hospitals Nairobi County and to define the moderating effect of economic condition on the association between personal financial management and financial wellbeing of medical doctors employed in public hospitals Nairobi County, Kenya. This study was anchored on Keynesian absolute income hypothesis, Permanent income hypothesis, Lifecycle savings theory, Prospect theory, Relative income hypothesis, and Savings and investment hypothesis. This study used descriptive research design, the target population was 259 doctors employed by the Nairobi City County government. The Yamane formula was used to obtain the sample size of 147 respondents and 112 questionnaires were collected. Primary information assembly was done utilizing a semi-structured survey provided to the respondents through dropping and picking later strategy. Descriptive statistics was used to analyze the gathered information; mean, mode, median, skewness, standard deviation, tables, figures, rates, and frequencies. The relationship between the variables was established by the use of inferential statistics. The knowledge of financial products (b=.354, t = 5.429, P<0.05), financial disposition and budgetary habits (b=.117, t = 2.397, P=.018), and financial saving behavior (b=.110, t = 5.316, P<0.05) had a positive statistically significant association with financial well-being of doctors. A unit increase in personal financial management increased financial wellness by 0.104 (b= .104, t=5.089, P<0.01) and was not moderated by the economic condition of doctors statistically significantly, P=.811. Personal financial management practices was a predictor of financial wellbeing of doctors, as personal financial management practices increase, financial wellbing increases. The economic condition of doctors influenced financial wellbeing, but did not moderate the relationship between personal financial management and financial wellbeing of doctors. This study recommends on training programs with respect to diversification of investments and financial products to be organized for medical doctors by relevant bodies, encourage medical doctors to regularly attend seminars on savings plans and budgeting techniques and further advise medical doctors to start saving and investing at their early age as this will strengthen their financial wellbeing status at their old age and lessen the struggle of saving and investing as their approach retirement period.