Financial literacy and its determinants of self-employed workers in the Ghanaian economy

Purpose The main purpose of this study was to investigate the level of financial literacy and its determinants among self-employed workers in the Ghanaian economy. Design/methodology/approach The study used a non-random sampling technique known as quota sampling for the purpose of selecting respondents from the targeted population. The study used an instrumental variable Tobit regression model to investigate the determinants of financial literacy among self-employed workers in the Ghanaian economy. Findings The study found that the level of financial literacy of the self-employed workers in the Ghanaian economy is low. The study also revealed that financial knowledge, financial attitude, financial behaviour, education and age have a statistically significant influence on financial literacy. Practical implications This paper indicates that the level of financial literacy of the self-employed workers in the Ghanaian economy is low and requires self-employed workers in Ghana to attend workshops and do short courses in finance, banking and economics organised by experts in those areas to increase their level of financial literacy. Originality/value Limited research exists on the level of financial literacy and its determinants among self-employed workers in developing countries. Therefore, I conducted this study to address the research gap in financial literacy by examining the level of financial literacy and the various factors that impact the financial literacy of self-employed workers in Ghana.