Influence of Financial Knowledge on Employees’ Financial Wellness in Public Technical Training Institutes: Evidence from Nyandarua County, Kenya

Most retirees from government training institutions have been found to retire with very little investment income to supplement the inadequate retirement cash flow. This study examined the influence of financial knowledge on employees’ financial wellness in public technical training institutes in Nyandarua County in Kenya. Guided by prospect theory and mental accounting theory, a sample comprising 121 employees selected through a stratified random sampling technique was drawn from a population of 174 employees. Adopting a correlation research design, primary data were collected using questionnaires, administered through the drop-and-pick method. SPSS was applied to help generate inferences and descriptions for statistical analysis. Regression analysis was utilised to help understand the influence of financial literacy on financial wellness. The results indicate that a higher level of financial knowledge through literacy leads to greater financial wellness and less financial stress and worries. This suggests that equipping workers with financial knowledge and skills can help them make informed and sound decisions about their finances, as this is key to supporting their financial wellness. Therefore, financial knowledge, as measured by an individual’s ability to save for future needs, invest in certain financial securities with higher returns. Making sound financial decisions is important in people’s financial wellness. The study recommends that public technical training institutions should subject their employees to financial knowledge acquisition to help them make informed personal financial decisions. These results call for the need for policy guidelines on the continued financial education of employees. They could also be useful in curriculum design and crafting educational programs in schools and colleges to guide the imparting of the requisite knowledge and skills among students regarding their future personal finances in terms of expenditures, savings, investments, and retirement planning