INFLUENCE OF FINANCIAL LITERACY ON MEMBERS’ SAVING BEHAVIOURS

Abstract

The study aims to investigate the relationship between financial literacy and among members saving behaviours of Evangelical Lutheran church of Tanzania Northern Diocese Savings and Credit Cooperative Society (ELCT-ND SACCOS) in Moshi Municipality, Kilimanjaro Region, Tanzania. Employing a cross-sectional survey design, the research will collect and analyze both quantitative and qualitative data to achieve its objectives. The geographical coverage focuses on ELCT-ND SACCOS due to its recent resurgence in promoting financial literacy and inclusion among members, coupled with its diverse investment products and services. The population comprises 10,800 active SACCOS members, from which a sample size of 386 respondents determined using the Yamane formula. Sampling techniques include purposive sampling of key informants within the SACCOS and simple random sampling of individual members. Data collection methods encompass interviews and survey questionnaires, allowing for a sequential explanatory mixed-method design to gather comprehensive insights. Reliability and validity of data were ensured through pretests, internal consistency checks, Cronbach's alpha test, and expert validation of research instruments. Ethical considerations for conducting research was adhered throughout the research process; involving obtaining clearance, permission, informed consent, and maintaining confidentiality. Data analysis techniques encompass descriptive statistics, cross-tabulation, and binary logistic regression to explore financial literacy levels, factors influencing investment decisions, and the relationship between financial literacy and investment behaviour. The study concluded that financial attitude and financial management are statistically significant to savings behaviours among SACCOS members. Further, financial awareness has no statistical significance on SACCOS member's saving behaviours. Based on the conclusion it was recommended that policy makers should create and endorse programs that emphasize financial literacy. Further, the ELCT-ND SACCOS members themselves should actively engage in the educational opportunities provided in their organization