Quantitative Analysis of Factors Influencing Financial Management among Village Community Banks’ Beneficiaries in Mbeya City, Tanzania

Abstract

The present study investigated factors that influence participants’ financial administration in Village Community Banks (VICOBA) in Mbeya City. The study employed an experimental research design in which a cross-sectional sample of 100 respondents was collected using both closed and open-ended interview schedules. The study employed STATA in data analysis where descriptive and quantitative outputs were obtained. Findings showed that age, marital status, and personal decisions of VICOBA beneficiaries were positively correlated and significant with financial management at p<0.05 and p<0.01 levels, respectively. Furthermore, it was found that household size, experience, and financial literacy were inversely correlated and statistically significant with financial management at p<0.01 level. It was therefore concluded that age, marital status, and personal decisions of beneficiaries have a positive influence on financial management contrary to household size, experience, and financial literacy. It is therefore recommended that beneficiaries should optimize personal decisions for sustainable financial management contrary to household size and experience.