ASSESSING THE FINANCIAL LITERACY AMONG THE ENTREPRENEURS OF FINANCIAL SACCO’S IN RWANDA

Abstract

The purpose of the study was to assess the financial literacy among the entrepreneurs in financial sacco’s of Rwanda, the descriptive and correlational analysis research designs were used in this study to enable the researcher to collect data, summarize them, present them, and then interpret them for clarification. Based on the specific objective which was to assess the financial literacy among the entrepreneurs in financial sacco’s of Rwanda, From the perceptions of respondents on debt management literacy, indicated that on average, respondents strongly agreed with the statements made because the overall mean is 4.65 and the mean score on a statement about if respondents are confident in their ability to create a personal budget is 4.89 which is strong and standard deviation of 0.40 which is homogeneous, indicated that the agreement with the statement. The respondents also strongly agreed that they understand the concept of interest rates and how it impacts borrowing as indicated by a strong mean of 4.91 and a homogeneous standard deviation of 0.43. From the perceptions of respondents on timely repayment, the respondents strongly agreed that timely repayment of loans is a priority for maintaining good financial collateral evaluation indicated by a strong mean of 4.33 and a homogeneous standard deviation of 0.47 which indicates that the respondents answered the same. They also strongly agreed with statements that understand the importance of making loan payments on time to avoid additional fees, penalties, or damage to credit scores as indicated by a strong mean of 4.17. The results indicate that the adjusted R2 is 0.471 representing 47.1% indicating that the financial literacy components contribute to the loan repayment, while 0.529 representing 52.9% of loan repayment comes from other variables that are not included in the model three. From ANOVA Table shown, the F- test of 39.420 has a p-value = 0.000, indicating that the variables used in the model jointly have a statistical significance as good predictors of loan repayment.