Financial Education, Risk Tolerance and Financial Behaviour of Rural Traders in Upper East Region of Ghana; Does Financial Literacy Matter?

Financial literacy and behaviour of rural traders

Authors

DOI:

https://doi.org/10.4314/5g77rp12

Keywords:

Financial education, Financial literacy, Financial behaviour, Risk tolerance, Ghana, Rural

Abstract

Inadequate savings and poor saving habits among rural traders suggest that many may struggle to navigate the increasingly complicated financial markets. The study explores the connection between financial education, financial behaviour, financial literacy and risk tolerance among rural traders. We used structured questionnaires to collect data from 489 participants in the Upper East Region of Ghana and performed multiple regressions and mediation analysis. Our findings reveal a strong positive link between financial education and financial behaviour. Furthermore, financial literacy is found to mediate the financial education and financial behaviour nexus. We also identified a significant link between risk tolerance and financial behaviour. Stakeholder groups, such as the Association of Ghana Industries and the National Board for Small Scale Industries, should organise financial education programmes for rural traders to improve their financial literacy and decision-making.

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Author Biographies

  • Beatrice Sarpong-Danquah, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana

    Dr Sarpong-Danquah is a Senior Lecturer at the Department of Accounting and Finance, Kwame Nkrumah University of Science and Technology (KNUST), where she has served since 2016. She holds a PhD in Accounting, an MPhil in Accounting, and a BSc in Business Administration (Accounting) from KNUST. She is also a member of the Institute of Chartered Accountants, Ghana (ICA-G). She previously served as the chairperson of the audit committee of the Juaben Municipal Assembly. Her research contributions span corporate governance, gender diversity, capital structure, financial literacy, and accounting education, with publications in journals such as Global Business Review, Annals of Public and Cooperative Economics, Managerial and Decision Economics, Journal of Institutional Economics and Social Sciences & Humanities Open. She has co-authored studies on board diversity, internal audit quality, and judicial efficiency in financial performance, particularly within African financial institutions. Dr Sarpong-Danquah is committed to advancing financial accountability and governance in emerging economies. Her work bridges academic inquiry and practical policy relevance.

  • Kwasi Poku, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana

    Kwasi Poku is a Senior Lecturer in the Department of Accounting and Finance, KNUST. He holds an MBA in finance (University of Leicester, UK) and a PhD in Finance from the University of the Witwatersrand. He holds a BSc in Development Planning from KNUST. He has been teaching both at the undergraduate and postgraduate levels at the KNUST School of Business since 2006. His research interests include financial inclusion, financial technology, and corporate finance. He has published articles in reputable journals such as the Cogent Business and Management, Cogent Economics and Finance, Annals of Public and Cooperative Economics and International Journal of Social Economics.

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Published

01/13/2026

Issue

Vol. 44 No. 2 (2026)

Section

Articles

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Copyright (c) 2026 Journal of Science and Technology

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Articles published in the JUST are licensed under a Creative Commons Attribution 4.0 International Licence (CC BY 4.0).

How to Cite

Financial Education, Risk Tolerance and Financial Behaviour of Rural Traders in Upper East Region of Ghana; Does Financial Literacy Matter? Financial literacy and behaviour of rural traders. (2026). Journal of Science and Technology, 44(2), 86-112. https://doi.org/10.4314/5g77rp12

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