EXPLORING THE EFFECTS OF FINANCIAL LITERACY ON THE SAVING BEHAVIOUR OF NAMIBIAN FINANCE GRADUATES.
This study investigates the impact of financial literacy on the saving behaviour of Namibian finance graduates. The main objective of the study was achieved through the following sub-objectives; to determine the influence of financial literacy on the saving behaviour of Namibian finance graduates, to identify the factors that influence the saving behaviour of Namibian finance graduates and, to determine whether graduates understand the savings products offered by the financial markets. Using a quantitative research approach, data were collected through a questionnaire from forty- one (41) finance graduates who completed their studies at the University of Namibia between April 2022 and April 2023. The sample was selected using the convenience sampling method. The findings reveal that a higher educational level significantly influences both financial literacy and saving behaviour, affecting 56% of respondents. Interest rates were identified as a major factor influencing saving behaviour for 63% of participants, while 51% believed that an increase in income enables higher savings, and 49% considered economic growth to have a positive impact on savings. Furthermore, only 19% of graduates lacked awareness of financial products, indicating that 81% were knowledgeable about the financial products available in the market. Given these findings, the study recommends the development of tailored financial literacy programs that specifically address the needs of Namibian finance graduates. These programs should focus on key areas such as understanding interest rates, income management, and the impact of economic growth on personal finances. It is advised that these initiatives include seminars for recent graduates in entry-level positions to highlight the importance of establishing strong saving habits early in their careers.
