Savings and Investment Behaviour of Young Adults: The Role of Financial Literacy and Parental Financial Behaviour

  • Godfred Matthew Yaw Owusu University of Ghana
Keywords: Household savings, investment behaviour, financial literacy, financial behaviour


This study examines the savings and investment behaviour of young adults, their levels of financial literacy and ascertains whether financial literacy is an important predictor of savings and investment behaviour. Additionally, the study investigates the role of parental financial behaviour on financial literacy, savings and investment behaviour of young people. Using a survey-based approach, we collected data via a questionnaire from a sample of young undergraduate students from a large public university in Ghana. We employed the Covariance-Based Structural Equation Modelling technique to examine the hypothesized relationships of the study. The empirical results of the study based on a sample of 646 students show that financial literacy positively correlates with savings and investment behaviour of young adults. Moreover, we find parental financial behaviour to be an important predictor of the level of financial literacy of young adults and directly impacts on their savings and investment behaviour.

Author Biography

Godfred Matthew Yaw Owusu, University of Ghana

University of Ghana Business School

P. O. Box LG 78, Legon,
Accra, Ghana.