EFFECT OF SAVING LITERACY ON INVESTMENT DECISION AMONG SECONDARY SCHOOL TEACHERS IN MERU COUNTY

The education sector in Kenya receive the largest share of the country's budget, with a significant portion allocated to paying teachers' salaries, as they constituted a large portion of the employed workforce. This study aimed to assess the effect of saving literacy on investment decisions among public secondary school teachers in Meru County, Kenya. It investigated why teachers in Meru County struggled to invest for their future and explored the role of their financial literacy in contributing to this issue, as indicated in the Solution SACCO annual report for the year 2022. The study was anchored under Financial Literacy Theory. Empirical analysis was conducted based on the study's objectives and conceptual framework. The target population for the study consisted of 1,825 teachers from public secondary schools in Meru County. A descriptive research design was employed, gathering data from primary and secondary sources. Purposive sampling was used to select accessible schools in the nine sub-counties within Meru County, while a simple random sampling technique was applied to select 328 respondents. A self-administered questionnaire was tested on 30 respondents from Tharaka Nithi County, constituting 10% of the sample size, and feedback from the university supervisors was used to address any ambiguities or irrelevant questions. The researcher distributed and collected questionnaires using the drop-and-pick method. After collecting the data from the field, it was reviewed to identify errors such as spelling mistakes and unanswered questions. The data was then coded and entered into the Statistical Package for Social Sciences (SPSS) for analysis. The findings were presented through tables, and regression analysis, ANOVA tests, and coefficients of determination were conducted to examine correlations and establish the model equation. Descriptive statistics were used to calculate mean values and standard deviations, and Pearson correlation analysis was employed for hypothesis testing. Subsequently, the findings were compiled into summaries, reports, and frequency distribution tables. The analysis of multiple regression indicated that the R^2 value stood at is 0.691, suggesting that the variables related to financial literacy accounts for 69.1% of change for variation in investment decisions made by TSC teachers in public secondary schools in Meru County. The findings concluded that employees generally exhibit prudent financial practices, as seen in their efforts to avoid loan defaults, read credit terms carefully, repay borrowed money promptly, and use unsecured loans judiciously. The study recommended for adoption of a culture that emphasizes saving and investing among teachers in the Teaching Service Commission (TSC) and suggest for an attempt to explore non-economic elements that might affect teachers' investment decision-making processes. KEY WORDS; saving, financial literacy,