ASSESSMENT OF THE ROLE OF FINANCIAL LITERACY

ON SPENDING HABITS OF COLLEGE STUDENTS IN

PRIVATE UNIVERSITIES: A CASE STUDY OF UNITED
STATES INTERNATIONAL UNIVERSITY -AFRICA.

BY

NOREEN ASSENGA

UNITED STATES INTERNATIONAL UNIVERSITY-

AFRICA

SUMMER 2023
ASSESSMENT OF THE ROLE OF FINANCIAL LITERACY
ON SPENDING HABITS OF COLLEGE STUDENTS IN
PRIVATE UNIVERSITIES: A CASE STUDY OF UNITED
STATES INTERNATIONAL UNIVERSITY-AFRICA.

BY

NOREEN ASSENGA

A Research Project report Submitted to the Chandaria School

of Business in Partial Fulfillment of the Requirements for the
Degree of master’s in business administration (MBA)

UNITED STATES INTERNATIONAL UNIVERSITY-

AFRICA

SUMMER 2023
 STUDENT'S DECLARATION
I , the undersigned, certify that United States International University Africa in Nairobi is
the only educational institution to which I have submitted this work for credit purposes and
that it is my own original work.

Signed: IS^J^ Date:

Noreen Assenga (ID No: 656416)

This research project report has been presented for examination with my approval as the
appointed supervisor.

Signed:: Date: j Q ^ ^

Dean, Chandaria School of Business

ii
 COPYRIGHT
No part of this article may be copied, reprinted, or redistributed in any form, either
electronically or mechanically, without the express written consent of the author, who is
the only proprietor of the work presented herein.

Noreen Assenga© Copyright 2023.

iii
 ABSTRACT
This study assessed the role of financial literacy's role in college students' spending
tendencies, particularly at USIU-Africa in Nairobi Kenya. The research aimed to address
the following objectives: To examine the effects of borrowing on the spending habits of
college students at USIU-Africa. To establish the influence of financial planning on the
spending habits of college students. To analyze the effect of investment on the spending
habits of college students at USIU-Africa.

The study adopted a descriptive research design. The study targeted Freshmen,
Sophomores, Juniors, and Seniors. The population size was 254 students. The sample size
was 155 students from different academic levels. A questionnaire was used to collect data.
The research objectives guided the development and organization of the questionnaire. The
questionnaire included both open and closed questions. Inferential and descriptive statistics
were generated using the data analysis tool Statistical Package for the Social Sciences
(SPSS). Percentages and frequencies were utilized for descriptive analysis, while
correlation and regression analysis were conducted for inferential statistics to determine the
nature of the relationship between the study’s independent variables. Tables, pie charts,
graphs, and other graphic displays were used to present the findings.

The results and findings of this study indicated that investing was statistically significant
to the spending habits of college students, while borrowing and financial planning were
insignificant. The analysis showed that there is an insignificant relationship between
borrowing effects and spending habits (r=0.109, p>0.05). The second objective was to
establish the influence of financial planning on the spending habits of college students. The
analysis indicated that there was an insignificant relationship between spending habits and
financial planning, the correlation coefficient was (r=0.018, p>0.05). The third objective
was to analyze the effect of investment on the spending habits of college students at USIU-
Africa. The correlation coefficient was (r=0.251, p<0.05), indicating that there was a
significant relationship between the variables. ANOVA results were (F=1.100, P>0.05), (F
= 0.031, p>.05), (F=6.371, P<.05), for borrowing, financial planning, and investing
respectively, indicating their significances statistically.

The study recommends financial literacy courses to help university students get equipped
with knowledge on investing, wise borrowing, and financial planning. Financial literacy is
an important aspect in improving the spending tendencies of students. Students find

iv
themselves in a setting that needs them to step up in terms of providing for their growing
needs with no actual or reliable source of steady income. Since most of the students rely on
loans and various debts to cope with their day to day needs, equipping them with financial
literacy are a step towards improving their spending habits by working on how they think
of investments, financial planning, and taking out loans.

v
 ACKNOWLEDGEMENTS
I want to give thanks to God because without him I never would have made it this far. I am
deeply thankful to my supervisor, Bernard Omboi, for his guidance, expertise, and
unwavering support throughout the entire research process. His insightful feedback,
constructive criticism, and encouragement played a pivotal role in shaping this study.

vi
 DEDICATION
To my loved ones, I present this work.

vii
 TABLE OF CONTENT
STUDENT’S DECLARATION ........................................................................................ ii
COPYRIGHT ....................................................................................................................iii
ABSTRACT ....................................................................................................................... iv
ACKNOWLEDGEMENT ................................................................................................ vi
DEDICATION.................................................................................................................. vii
LIST OF TABLES ............................................................................................................. x
LIST OF FIGURES .......................................................................................................... xi
LIST OF ABBREVIATION............................................................................................ xii
CHAPTER ONE ................................................................................................................ 1
1.0 INTRODUCTION........................................................................................................ 1
1.1 Background Information ................................................................................................ 1
1.2 Statement of the Problem ............................................................................................... 5
1.3 Purpose of the Study ...................................................................................................... 6
1.4 Specific Objectives ........................................................................................................ 6
1.5 Significance of study...................................................................................................... 6
1.6 Scope of the Study ......................................................................................................... 8
1.7 Definition of Terms........................................................................................................ 8
1.8 Chapter Summary .......................................................................................................... 9
CHAPTER TWO ............................................................................................................. 10
2.0 LITERATURE TWO ................................................................................................ 10
2.1 Introduction .................................................................................................................. 10
2.2 Borrowing and Spending Habits of College Students ................................................. 10
2.3 Financial Planning and Spending Habits of College Students..................................... 14
2.4 Investing and Spending Habits of College Students .................................................... 18
2.5 Chapter Summary ........................................................................................................ 22
CHAPTER THREE ......................................................................................................... 23
3.0 RESEARCH METHODOLOGY ............................................................................. 23
3.1 Introduction .................................................................................................................. 23
3.2 Research Design........................................................................................................... 23
3.3 Population and Sampling Design ................................................................................. 23
3.4 Data Collection Methods ............................................................................................. 26
3.5 Research Procedures .................................................................................................... 27

viii
3.6 Data Analysis Methods ................................................................................................ 28
3.7 Chapter Summary ........................................................................................................ 28
CHAPTER FOUR ............................................................................................................ 29
4.0 RESULTS AND FINDINGS ..................................................................................... 29
4.1 Introduction .................................................................................................................. 29
4.2 Demographic Information ............................................................................................ 30
4.3 To examine how borrowing affects the spending habits of college students at USIU-
Africa ................................................................................................................................. 32
4.4 To find out how financial planning influences the spending habits of college students
at USIU-Africa. .................................................................................................................. 37
4.5 To analyze how investing affects the spending habits of college students at USIU-
Africa. ................................................................................................................................ 41
4.6 Chapter Summary ........................................................................................................ 46
CHAPTER 5 ..................................................................................................................... 47
5.0 DISCUSSION, CONCLUSION, AND RECOMMENDATIONS ......................... 47
5.1 Introduction .................................................................................................................. 47
5.2 Summary ...................................................................................................................... 47
5.3 Discussion .................................................................................................................... 48
5.4 Conclusion ................................................................................................................... 52
5.5 Recommendations ........................................................................................................ 53
REFERENCES................................................................................................................. 54
APPENDICES .................................................................................................................. 62
APPENDIX I : DEBRIEF FORM .................................................................................. 71
APPENDIX II: RESPONDENT’S CONSENT FORM ................................................ 63
APPENDIX III: QUESTIONNAIRE ............................................................................. 64
APPENDIX IV: INTRODUCTION LETTER .............................................................. 72
APPENDIX V: INSTITUTIONAL REVIEW BOARD APPROVAL ........................ 73
APPENDIX VI: NACOSTI PERMIT ............................................................................ 74

ix
 LIST OF TABLES
Table 3.1: Target Population.............................................................................................. 24
Table 3.2 ............................................................................................................................ 26
Table 4: 1 Borrowing effects on spending habits ............................................................. 34
Table 4: 2 Correlation between borrowing effects and spending habits. ........................... 35
Table 4: 3 Model Summary for borrowing effects and spending habits............................ 35
Table 4: 4 ANOVA table for Linear Regression between borrowing effects and spending
habits. ................................................................................................................................. 36
Table 4: 5 Coefficients for Linear Regression Between Product Innovation and Service
Excellence. ......................................................................................................................... 36
Table 4: 6 Financial Planning ............................................................................................ 38
Table 4: 7 Influence of financial planning and spending habits. ....................................... 39
Table 4: 8 Model Summary for influence of financial planning and spending habits. ...... 40
Table 4: 9 ANOVA table for Linear Regression between financial planning and spending
habits .................................................................................................................................. 40
Table 4: 10 Coefficients for Linear Regression Between influence of financial planning and
spending habits................................................................................................................... 41
Table 4: 11 Investing affects .............................................................................................. 43
Table 4: 12 Correlation Between investing effects and spending habits. .......................... 44
Table 4: 13 Model Summary for investing effects and spending habits............................ 45
Table 4: 14 ANOVA table for Linear Regression Between investing effects and spending
habits. ................................................................................................................................. 45
Table 4: 15 Coefficients for Linear Regression Between investing effects and spending
habits. ................................................................................................................................. 46

x
 LIST OF FIGURES
Figure 4: 1Respondents Response RateGeneral Information ............................................ 29
Figure 4: 2 Gender of the Respondents.............................................................................. 30
Figure 4: 3 Year of Academic ............................................................................................ 30
Figure 4: 4 Respondents Age ............................................................................................. 31
Figure 4: 5 Respondent employment status ....................................................................... 32
Figure 4: 6 Financial Assistance ........................................................................................ 32

xi
 LIST OF ABBREVIATION
BSAIS – Bachelor of Science in Accounting and Information Systems

CRM - Constituency Resource Management

FAS - Financial Anxiety Scale

GFLEC - Global Financial Literacy Excellence Center

IRB – Institutional Review Board

NACOSTI - National Commission for Science, Technology, and Innovation

USIU – United States International University

SPSS - Statistical Package for the Social Sciences

xii
 CHAPTER ONE

1.0 INTRODUCTION

1.1 Background of the study

Making decisions is crucial since it is a vital component of human existence. Every day,
people make decisions, from straightforward ones like what to dress or eat to more difficult
ones like picking a job or making a significant purchase (Green & Chen 2019). Success in
all spheres of life, including intimate relationships, employment, and financial problems,
depends on the capacity to make wise decisions (Strömbäck et al., 2017). Decision-making
is influenced by various factors listed by Aydin and Akben Selcuk (2019), including
financial literacy, money ethics, and time preferences which are all related. Financial
decisions are critical to people's daily decisions and judgments. Aydin and Akben Selcuk
(2019) contend that making financial decisions is a crucial part of daily living and that those
who are financially educated are better able to do so. Sound financial decisions depend on
the individual's financial literacy level.
It is essential to understand financial literacy first and why making sound financial
decisions is critical. Financial literacy is the capacity of a person to comprehend and
efficiently manage their finances, according to Kadoya and Khan (2020). This includes
having knowledge and skills related to financial concepts such as budgeting, saving,
investing, and borrowing, as well as understanding financial products and services (Kadoya
and Khan, 2020). According to Arceo-Gómez & Villagómez (2017), financial literacy also
includes the capacity to assess financial data and base judgments on it. Financial literacy is
thus an important tool for managing the ever-increasing complexity of financial matters in
the modern world. Financial literacy is crucial for college students, especially in Kenya,
where Kigotho (2023) observed that most university and college students depend on the
government's limited fund.
Financial literacy among college students is a worldwide concern, as evidenced by research
undertaken by Arceo-Gómez and Villagómez (2017), Ergün (2018), and Lusardi (2019).
Arceo-Gómez and Villagómez (2017) studied Mexican school teens and discovered a lack
of financial literacy, which may limit their capacity to handle their resources successfully
in the future. Similarly, Ergün (2018) discovered that students lacked fundamental financial
knowledge and abilities in her financial literacy research among university students in eight
European nations. This implies that many college students may fail to make prudent

1
financial decisions and, as a result, may encounter financial troubles. Lusardi's (2019) study
underscores the necessity for financial education, emphasizing the relevance of financial
literacy among college students. Lusardi contends that financial education may assist
students in acquiring the information and skills required to make prudent financial
decisions, especially in today's complicated financial climate.
These skills may come in handy when we consider spending habits. Spending habits can
be loosely described as a pattern of behavior associated with how a person spends money.
It relates to how someone spends their money on various goods and services and the
frequency and regularity with which they do so (Valaskova et al., 2021). Personal spending
patterns can vary greatly and are impacted by various factors such as personal beliefs,
lifestyle choices, income level, and financial aspirations. Some people are predisposed to
splurge, while others are more frugal with their money (Villanueva, 2017). Understanding
and regulating spending patterns is critical for long-term financial stability and
achievement, particularly among college students. Several studies have identified financial
literacy as a factor in determining purchase behavior.
According to studies, financial literacy significantly influences individual spending
behavior. Iyika et al. (2020), for example, discovered that public officials in Lagos State,
Nigeria, with greater levels of economic and financial literacy, were more likely to
participate in responsible spending behavior, such as budgeting and saving, than those with
lower levels of financial literacy. Binti Azmi and Ramakrishnan (2018) discovered a
favorable association between financial understanding and responsible spending behavior
among Malaysian teaching personnel. Those with higher financial awareness were more
inclined to limit their costs, save money, and avoid impulsive purchases. Moreover, Garg
and Singh (2018) investigated financial literacy among Indian adolescents. They
discovered that higher financial literacy is related to better spending behaviors, such as a
stronger desire to save and invest and a lower tendency to overspend or incur debt.
According to Garg and Singh (2018), financial education may be a beneficial strategy for
reducing young spending habits and fostering financial stability.
Various factors, including financial literacy, family and peer influence, and student services
expenditure, impact college students' spending habits. Esmail Alekam (2018) discovered
that financial literacy was favorably related to saving behavior and adversely associated
with spending among young generations, especially college students. The study also
discovered that family and peer influence substantially impacted college students' financial
literacy and spending habits. Likewise, Nasiri et al. (2021) investigated Afghan students'
2
spending and saving habits in Mangalore, India, and discovered that financial literacy
substantially influenced spending habits. Students with greater levels of financial literacy
were shown to be more inclined to manage their costs, save money, and avoid impulsive
purchases.
Furthermore, the study discovered that family wealth, peer influence, and student services
expenditure all affected college students' spending habits. Beyer (2018) studied the
relationship between student services spending and competition between colleges and
found that colleges with higher student services spending had higher tuition fees and were
more likely to attract students from higher-income families. The study suggests that student
services spending can factor in college selection and student behavior.
The spending habits of private college students have been intensively examined in recent
years, and several factors have been identified as predictors of their spending patterns.
Gender, family wealth, financial awareness, and peer pressure are the key factors in
students' spending patterns, according to Obagbuwa and Kwenda (2020). According to the
study, male students spent more than female students, students with more parental wealth
spent more than their peers, and students with better financial understanding spent less than
those with lower financial knowledge. According to State University (2014), private
college students spend more on apparel, transportation, and personal care goods than public
college students. This shows that students' families' socioeconomic level and desire to
maintain a specific lifestyle may impact their spending habits at private universities.
Montalto et al. (2019) discovered that financial literacy relates to students' financial well-
being and spending habits. This suggests that boosting financial awareness among college
students at private universities might result in better spending habits and financial results.
With that in mind, it is crucial to consider the current spending habits of the students and
their financial literacy, which is a worldwide phenomenon, not just in Kenya.
For instance, in the United Kingdom, Canceran et al. (2022) evaluated the level of financial
literacy among BS Accounting and Information Systems (BSAIS) students and the
influence on their online shopping behavior. While most of the students possessed basic
financial knowledge, they lacked practical financial abilities such as budgeting, investing,
and debt management, according to the findings. Canceran et al. (2022) discovered that
financial literacy substantially influenced BSAIS students' online shopping behavior.
Students with more potent financial literacy made more informed judgments than those
with lower financial literacy. Furthermore, the study discovered that online shopping

3
behavior was positively connected to financial literacy, implying that students with better
financial literacy were more likely to make online purchases.
In Africa, Oseifuah et al. (2018) investigate Ghanaian college students' financial literacy
levels and their influence on their spending patterns. According to the survey, most
Ghanaian students have inadequate levels of financial literacy, as indicated by their
inability to make wise financial decisions. Furthermore, students with a high degree of
financial literacy are more likely to have better spending habits because they can make
educated decisions and manage their funds efficiently (Oseifuah et al., 2018). Mudzingiri
et al. (2018) investigated African university students' financial behavior, confidence, risk
choices, and financial literacy. In the South African study, financial literacy among
university students was poor, indicating the need for financial education programs aimed
at this group. The study also discovered that students with greater levels of financial literacy
have better financial behavior, confidence, and risk preferences, resulting in better financial
decision-making and less financial stress (Mudzingiri et al., 2018). The authors note that
African students encounter specific financial obstacles that may differ from those in other
regions. Many African students, for example, originate from low-income families and may
have restricted access to financial resources and knowledge. Consequently, financial
education programs aimed at African university students should consider these cultural and
contextual aspects to guarantee that they are successful and relevant.
Within the Kenyan context, the researcher used studies on USIU college students, which is
core to this study. College students at the United States International University- Africa
(USIU-Africa) in Nairobi County face unique challenges in managing their finances.
Mburu et al. (2016) assessed financial literacy among Kenyan college students and
highlighted various issues students encounter in public and private colleges and
universities. They stated that college students in Kenya's institutions of higher learning
have struggled with budgeting, saving, and making informed financial decisions due to a
lack of basic financial understanding (Mburu et al., 2016). This has resulted in
overspending, debt accumulation, and the inability to satisfy basic demands. Furthermore,
these college students confront specific obstacles such as higher tuition, textbook costs, and
social pressure in terms of lifestyle and spending habits, which all influence their spending
habits (Mburu et al., 2016). Financial literacy is, therefore, vital to avoid some of the issues
mentioned above.
However, concern about the low financial literacy among students in private learning
institutions in Kenya has been noted. Kamau (2020) raised the issue of students with poor
4
financial literacy at the United States International University (USIU) in Nairobi, Kenya.
The study examined the impact of financial literacy on student spending patterns and
discovered that many students lacked a proper understanding of financial management,
which resulted in bad spending habits. According to the report, most students
acknowledged spending more money than they earned or got as allowances, citing peer
pressure and a lack of financial planning skills as the primary causes. Despite this, USIU
outperforms its peers in having financially literate students. Surveys conducted by the
Global Financial Literacy Excellence Center (GFLEC) in 2018 found that college students
at USIU-Africa in Nairobi County had a higher level of financial literacy than other college
students worldwide (Hilgert, Hogarth, & Beverly, 2018). Additionally, the survey found
that college students in Nairobi County had higher financial knowledge, better attitudes
toward financial management, and better financial behaviors than college students from
other countries (Hilgert et al., 2018).
Research has identified financial illiteracy as a concern in all parts of the world. In as much
as the degree of financial illiteracy differs depending on the environmental and other
contextual factors and its adverse effects on sustainable spending and savings, there is one
common issue that all the literature identified. College students generally have poor
spending habits necessitating further research to address such issues through evidence-
based policies. The importance of the role of financial literacy on the spending habits of
USIU-Africa students in Nairobi County has significant social implications. Poor spending
habits can lead to debt and financial insecurity, harming individuals, communities, and
society more broadly (Kibet, 2018). Additionally, it is essential to note that low levels of
financial literacy can disproportionately impact those from low-income and marginalized
backgrounds, as they are more likely to have limited access to financial education (Ozsoy
et al., 2015). As such, more research should be conducted to understand better how to
improve college students' financial literacy.
1.2 Statement of the Problem
Financial literacy is crucial for managing finances effectively in today's complex financial
environment (Lusardi, 2019). The importance of financial literacy is particularly relevant
for college students facing financial difficulties due to limited funds (Goyal & Kumar
2021). Spending habits among college students are also an essential aspect of financial
management that can significantly impact their financial stability and future success
(Potrichet et al., 2018). However, many college students lack financial literacy and face
challenges in managing their personal finances (Shambare & Rugimbana 2012). College
5
students are often exposed to various financial opportunities and temptations, such as
student loans, credit cards, online shopping, peer pressure, and social events (Harrison et
al. 2015). These factors can influence their spending habits and lead to overspending, debt
accumulation, low savings, and financial stress (Esmail Alekam, 2018). The financial
literacy amongst Kenyans is generally low (38%) particularly compared to its peers in
Tanzania (40%) and South Africa (45%) (Odera, 2023). As such, the level of financial
literacy amongst Kenyan college students is generally low.
Several studies including Garg and Singh (2018) have demonstrated that financial literacy
significantly influences individual spending behavior. Mudzingiri et al. (2018) also
discovered that students with greater levels of financial literacy have better financial
behavior, confidence, and risk preferences, resulting in better financial decision-making
and less financial stress. However, little research has been conducted on the relationship
between financial literacy and spending habits among college students in Kenya,
particularly those attending private universities. This study seeks to address this research
gap by assessing the role of financial literacy on the spending habits of college students in
private universities in Kenya, using United States International University-Africa (USIU-
Africa) as a case study.

1.3 Purpose of the Study

This research aims to understand the role of financial literacy on the spending habits of
college students specifically at USIU-Africa in Nairobi Kenya.

1.4 Specific Objectives

1.4.1 To examine the effects of borrowing on the spending habits of college students at
USIU-Africa.
1.4.2 To establish the influence of financial planning on the spending habits of college
student at USIU-Africa.
1.4.3 To analyze the effects of investing on the spending habits of college students at
USIU-Africa.

1.5 Significance of the study

The findings of this study can benefit the key stakeholders, including the students, the
government, financial institutions, society, and the universities, by increasing their
understanding of how financial literacy affects spending habits and providing strategies to
promote financial literacy.

6
1.5.1 University and College Students

Students are the primary stakeholders in this study. They will benefit from the findings of
this research by learning how to manage their finances responsibly and make better
decisions about how to use their money. Understanding the importance of financial literacy
will help students make more informed decisions about spending their money, which may
result in less debt and more money saved for future expenses. Additionally, these findings
can help students better understand the long-term financial implications of their actions and
how to manage their finances more effectively.

1.5.2 Universities

Universities are also key stakeholders in this research, as they can use the findings of this
study to develop programs and resources to help their students become more financially
literate. By providing students with the necessary resources and guidance to become more
financially literate, universities can help their students make smarter spending decisions
and better prepare for their future financial decisions. Additionally, universities can use this
research's findings to understand better their students' financial decisions and how to
support them best financially.

1.5.3 Financial Institutions and Employees

Financial institutions and employers will benefit from the findings of this study. Financial
institutions can market their products and services more effectively to college students by
understanding their financial literacy levels and spending habits (Joo & Kim, 2020).
Employers will also benefit from the findings of this study as it will provide insight into
the financial literacy levels of college graduates when they enter the workforce (Kotlikoff
& Burns, 2018).

1.5.4 Policy makers

Government entities will benefit from the findings of this study. By understanding college
students' financial literacy levels and spending habits, policymakers can better inform their
decisions on how to allocate government funds to support college students (Kotlikoff &
Burns, 2018). Additionally, this study's findings can inform the development of financial
literacy education programs, which can help reduce financial hardship among college
students (Joo & Kim, 2020).

7
1.5.5 Society

Society will benefit from the findings of this study. Financial literacy is a critical factor in
the economic well-being of individuals, households, and communities (Kotlikoff & Burns,
2018). By understanding college students' financial literacy levels and spending habits,
society can develop and implement programs to promote financial literacy, which can lead
to a more financially secure future for all.

1.6 Scope of the Study

This study assesses the role of financial literacy on spending habits at the United States
International University-Africa (USIU-Africa) in Nairobi, Kenya. The study will be
conducted using a survey, which will be administered to a sample of 155 students at USIU-
Africa. The survey will include questions about the students’ understanding of financial
concepts and spending habits. Additionally, the study used existing literature to understand
how financial literacy affects spending habits and to inform the development of the survey
questions. This study utilized primary data that was collected using a questionnaire from
students of USIU-Africa in Nairobi, Kenya. The study was based on USIU-Africa due to
the convenient access to students and readily available information. The study was
conducted between January 2023 through August 2023 and there were no complications on
collecting data.

1.7 Definition of Terms

1.7.1 Financial Literacy

The Financial Health Network (2016) defines financial literacy as "the knowledge, skills,
and confidence to make sound financial decisions based on one's values and goals."

1.7.2 Spending Habits

According to the Financial Literacy Group (2018), spending habits are "the patterns or
behaviors exhibited when it comes to spending and using money."

1.7.3 Borrowing

Borrowing is obtaining money or assets from a lender in exchange for a promise to repay
the debt at a future date with interest (Singer & Dees, 2016). Borrowing is a commonly
used financial instrument for individuals and businesses to purchase items, fund
investments, and cover expenses that cannot be paid out of current income (Harrison,

8
2019). Borrowing has the potential to increase purchasing power, but it also carries risks,
including the potential for default, which could damage the borrower's credit score (Khan
& Raza, 2018).

1.7.4 Investing

Investing is committing money or capital to an endeavor to obtain an additional income or

profit (Klapper & Wysocki, 2017). It often involves trading financial securities such as
stocks, bonds, and commodities but can also involve investing in real estate, art, and other
tangible assets. The goal of investing is to generate a return on the capital invested.

1.7.5 Financial Planning

Financial planning is creating a plan to achieve financial goals and objectives (Zietlow et
al., 2018). This process includes analyzing current financial status, setting short and long-
term financial goals, and developing strategies to achieve those goals (Zietlow et al., 2018).
Financial planners can help individuals and businesses develop appropriate plans and make
informed decisions about their financial future (Zietlow et al., 2018).

1.8 Chapter Summary

Chapter One provided an overview of the study's purpose, justification, and scope. The
study aimed to assess financial literacy's role in influencing spending habits among college
students in USIU-Africa, Nairobi, Kenya. The study was justified by the need to understand
the impact of financial literacy on the spending habits of college students in the area. The
scope of the study was limited to USIU-Africa, Nairobi, and Kenya.

The remaining chapters of the study provide an in-depth review of the literature on
assessing financial literacy's role in college students' spending habits in USIU-Africa,
Nairobi, Kenya. Chapter two provides an extensive literature review related to the topic,
including research on financial literacy, spending habits, and financial management.
Chapter three details the methodology used in the study, including the research design,
participants, data collection and analysis, and ethical considerations. Chapter Four presents
the results and findings of the study. Finally, chapter five provides a summary and
conclusion of the study and recommendations for further research.

9
 CHAPTER TWO

2.0 LITERATURE REVIEW

2.1 Introduction
In this chapter, the literature review in financial literacy and spending habits, upon which
the study is underpinned in accordance with the specific objectives. The content will be
drawn from past studies collected from different journal articles relating to the study.
Specifically, the literature review focuses on the variables of the study, the effects of
borrowing, financial planning, and investing on the spending habits of college students.

2.2 Borrowing and Spending Habits of College Students

Borrowing is a temporary possession of money with the intent to repay the amount
borrowed (McKinney, Mukherjee, Wade, Shefman & Breed, 2015). According to Afroze,
Rahman, and Yousuf (2018), the key reasons for borrowing are clients rustling and loan
pushing from the financial institution’s side and loan recycling from the borrowers’ side.
Repayment problems as well as social and economic pressure can drive borrowers into a
vicious cycle of taking out more and more loans (Engel, Behmanesh & Johnston, 2017).
When an individual borrows from more than one financial institution it is called individual
multiple borrowing whereas if more than one person from the same household (normal
household unit) borrows from the same or different financial institution, it is known as
household multiple borrowing (Mia, 2017). The cost of attending a college or university is
often cited as the source for student borrowing.

2.2.1 Student Loans

Student loan programs are increasingly used as an important policy instrument to promote
equitable access to higher education (Wilbert & Haddad, 2017). Student loans enable
students to avoid the burden of the up-front payment of increased tuition fees, as well as
enabling them to delay loan repayment until they are in receipt of the higher salaries that
generally accrue to university graduates. Baker, Andrews, and McDaniel (2017) low-
income students borrow student loans more often and in larger amounts. Student loan
programs in many countries; especially low-income or developing countries have not been
financially sustainable, at least not at the levels required to promote widespread
participation. The financial sustainability of a student loan requires that the subsidy costs
of student lending be held to levels that governments can afford and that the loans be made

10
available mainly from the private capital market rather than, like the subsidies, coming
entirely from hard-pressed government budgets (Johnstone, 2015)

Shaffer (2018) argues that money that has no educational target or purpose is often spent
on luxuries such as manicures, pedicures, and expensive vacations during breaks from
school. The lifestyle that students have while in high school becomes the expected norm in
post-secondary studies without the realization that the lifestyle is piggybacked on student
loans that will have to be paid back in the future with compounded interest costs (Darolia,
2016). Not to marginalize the impact that increasing tuition, fees, and books have on student
loans; but there appears to be another, less scrutinized contributor to student loans and that
is student personal spending. There is ample concern that college students are making ill-
informed student loan decisions with potentially negative consequences themselves.
Students often do not realize the true weight of their student loan burden until near or after
graduation. This is especially true for first-generation and minority students (Blagg &
Blom, 2018).

Lusardi, Mitchell, and Curto (2018) suggest that a lack of financial experience, particularly
basic financial literacy skills, impedes students’ ability to manage student loan debt while
attending college. Having limited financial understanding, many college students are not
aware of, nor do they consider, the impact of borrowing student loans until their college
career has ended and their student loans go into repayment. Often students are advised to
participate in higher education to plan and be prepared to make financial decisions, with
few if any basic financial literacy skills. To that end, many students are borrowing blindly
(Akers & Chingos, 2015). Students who do not have a good idea of their level of borrowing
may make expensive mistakes that they will later come to regret. They are also likely to be
surprised or even fearful when their first loan payments come due, which may impose an
emotional burden on borrowers. Students who take loans to attend college appear to know
even less about how much they borrowed than about the net price (Davis, 2018).

Heijnen (2019) examined the relationship between student loans and spending behavior
among Dutch college students. This study extends these findings by applying them to a
relatively unexplored credit method, student loans. A survey among 206 Dutch students
finds that students who finance their income by means of a student loan have lower self-
control in spending situations, which results in lower price sensitivity, greater ease of
spending, and an increased tendency to make impulsive purchases. This calls for pre-

11
emptive measures that provoke increased self-control in spending situations, which might
potentially reduce troublesome financial actions of students and consequently limit post-
graduation indebtedness.

Archuleta, Dale, and Spann (2017) conducted research to establish the relationship between
college students and financial distress. In this exploratory study, possible associations of
financial anxiety were explored using a sample of 180 college students who sought services
at a university peer financial counseling center in a Midwestern state. Of particular interest
was the influence of debt on student financial anxiety. To measure financial anxiety, a new
scale was developed, the Financial Anxiety Scale (FAS) that can be used as a tool for
financial planners, counselors, and educators to identify individuals who are experiencing
increased levels of financial distress that may call for a referral to an appropriate
professional. Results from two hierarchical regressions indicated that financial satisfaction,
student loans, and gender are associated with financial anxiety.

Wilbert and Haddad (2017) explored student loan debt and how are the funds spent. For
this study, a Constituency Resource Management (CRM) system was used to distribute an
email invitation to participate in a survey on student loans. The email was sent to all
enrolled students 7700 requesting their participation in the survey. Data were collected
utilizing an online survey tool, and data from 962 students were collected. The results
indicated that students do use loan money to pay for these items, get pedicures/manicures
or acrylic nails, go to a tanning salon, have their hair colored/highlighted regularly, make a
car payment, wear brand name shoes, wear designer clothes and reported that they go to a
vacation spot for fall or spring break.

2.2.2 Digital Loans

A digital loan or facility means a loan which the customer requests from the lender through
their registered and recognized mobile phone number on the System and disbursed
electronically by the lender to the customer (International Monetary Fund, 2019). The
growth of digital credit has especially grown in African and East Asian countries where
there are high levels of financial exclusion and where a mobile loan has gained roots
(Nduku, 2019). The usage of mobile loan applications has proliferated in developing
countries. This is due to the ease and speed with which they disburse small loans to users,
compared to traditional financial institutions, such as banks, that only offer similar loans
based on existing customer relationships or collateral (World Bank, 2016).

12
Ayanyemi and Adeboje (2020) allude that digital loans have a variety of advantages
including ease of access to loans, fast processing of loan applications, and offer more
privacy as compared to the conventional ways of accessing a loan. The most conspicuous
advantage, however, is the ability of these mobile loans to be issued without any collateral.
It is a standard requirement for banks to issue out loans on collateral which makes loans
unaffordable and inaccessible to many. These credit platforms offer both personal and
business loans thus making it possible for businesses that would otherwise not qualify for
loans from traditional financial institutions to access loans to improve their fund flow or
short-term investments.

Gitau (2018) suggests that the availability of digital loans a high number the students have
their spending habits increased as they can access loan facilities on their mobile phones.
According to the 2018 digital credit survey, 35% of Kenyans (roughly six million people),
most of them youth, had taken at least one digital loan. The most popular applications used
were M-Shwari, KCB-M-Pesa, Fuliza, Tala, Branch, and Timiza. The availability of instant
digital loans is derailing saving habits among Kenyans according to a new survey by
Enwealth and Strathmore University. The survey dubbed Savings and Investments
Behavior among Kenyans shows 57 percent of respondents who had taken loans from
mobile lending apps indicated this has a negative effect on their saving habits.

Cobla and Osei-Assibey (2018) carried out a study to investigate how the use of mobile
money technology among students affects their spending behavior. The study reports
interesting findings by using a random sample of 506 students from the University of Ghana
and applying the ordinary least squares regression technique. The findings suggest that
active use of mobile money services has a significant influence on students’ spending
behavior. On a monthly basis, students who use mobile money spend on average 20 Ghana
Cedis more than their colleagues who do not use mobile money. The implication of this
finding is that mobile money technology that provides easy access to money can increase
the spending behavior of students and reduce the tendency to save. The study concludes
that although technological growth should not be curtailed given the numerous benefits
technologies accrues to society, its use must be controlled when it comes to using it as a
medium of exchange to minimize negative influences (such as indiscriminate spending).

13
2.3 Financial Planning and Spending Habits of College Students
Financial planning is the process of assessing the financial goals of an individual, taking an
inventory of the money and other assets which, the person has, determining life goals, and
then taking necessary steps to achieve goals in the stipulated period. It is a method of
quantifying a person's requirements in terms of money (Hani, 2020). Financial planning
enables an individual to identify their goals and objectives, assess their current position,
and takes essential steps to achieve the goals and objectives. Financial planning is essential
in college because it helps students understand how they can manage their money. It also
helps them make the most of their resources. It teaches them the importance of saving,
investing, and budgeting (Huang, 2016).

Practicing good financial planning skills among students is good for their bright future and
thereby for the society and nation itself. Practicing judicious use of pocket money and hard-
earned salary in the school/college days is the first step towards gaining control over their
expenditures and debt in the future. As far as students are concerned, how they consider
spending by themselves is a matter of social freedom and they always stay updated on the
latest fashion and trends. For them buying branded clothes, expensive mobile phones, big
meals at international food chains, and travel by their own latest model vehicles all this is
the usual day expense of an average college goer, and their parents are willing to give their
children a monthly allowance for the same (Manju, 2016).

2.3.1 Budgeting

Budgeting can be defined as allotting all or part of a person’s total financial resources into
distinct categories to track expenses against a tangible monetary forecast (Horngren, 2018).
Thus, budgeting can be viewed as a strategy for managing personal finances with the
purpose of avoiding negative outcomes of debt accumulation. A good budgeting process
should integrate strategic planning initiatives and anticipate income before expenses.
Budgeting habits are important for every person. Having good budgeting habits represents
one of the most predictable determinants of successful personal and economic
development. Thus, changing budgeting tendencies may require changing an individual’s
feelings, cognitions, normative beliefs, habits, and perceptions of control toward budgeting,
and not merely increasing knowledge toward money management and financial debt
(Stone, 2020).

14
Budgeting is an essential skill for college students (Thobejane & Fatoki, 2017). They need
to learn how to budget to save money and be financially prepared to tackle their future.
Many financial planning mistakes happen during college because students are not taught
how to budget or manage their money. They often spend money they don't have, which can
lead them into debt. College students have acquired a reputation for irresponsibility and
impulsivity, which has contributed to the perception that they are poor managers of money.
Students are often uneducated and unguided when it comes to finances. This results in
irresponsible spending, poor planning, and heavy borrowing, all of which can have
devastating consequences at any point down the line (Widener, 2017).

Archuleta, Dale, and Spann (2019) argue that many students lack the discipline of
budgeting and are prone to overspending. The intention to budget among students is
affected by past debt frequency, the level of negative emotions experienced by participants
when their bank account was significantly overdrawn, financial literacy level, and income
(Shahrabani, 2016). According to Brougham (2016), compulsive buying tendencies,
defined as the lack of ability to control impulsive spending and irrational purchasing
decisions, are identified more in college students than in the general population. In fact,
Brougham et al. found that the prevalence rate for these tendencies among students is 6%
to 15%, while the public is estimated at about 5.8%. Micomonaco (2018) finds college
students tend not to have a budget or calculate credit card bills based on their actual
spending.

Thobejane and Fatoki (2017) investigated the budgeting and spending habits of university
students at a South African university. In addition, the study examined if there is a
significant gender difference in the budgeting and spending habits of university students.
The study adopted a quantitative research approach with a descriptive design. The
instrument used for data collection was a self-administered questionnaire. Convenience and
snowball sampling techniques were used to identify the study participants. Cronbach’s
alpha was used to test reliability. Data analysis included descriptive statistics and the t-test.
The findings of the study show that most university students do not have a written budget.
In addition, most university students spend money on groceries and fast food. Female
students are more likely than male students to have a budget. Recommendations to improve
the budgeting and spending habits of university students are suggested.

15
Similarly, Aung and Mon (2020) analyzed the budgeting habits of undergraduate students
at Yangon University of Economics. The study used descriptive and analytical methods
and conducted a questionnaire survey on a sample of 375 undergraduate students. It was
found that the budgeting habits of students are different based on gender. The study also
showed that significant portions of their budget are used to spend on shopping, eating out,
mobile phone expenditures, attending training for their career progress, traveling on a short
trip with their friends, and transportation. Most students lack proper budgeting habits. The
study suggested that students should know how much they can spend and how they can
improve their budgeting habits.

2.3.2 Saving

Savings in its simplest definition is setting something of value aside for future use (Collins,
2021). By doing this, people can be ready to face unexpected and irregular situations
including financial circumstances. The habit of savings plays an important role in everyday
financial decisions. Savings play an integral aspect in an individual’s financial management
skills since they are the bedrock of personal financial success. Savings is not just about
setting money aside for future use but also has to do with keeping anything of economic
value. Savings are securing assurance today for tomorrow’s uncertainties. Saving and
having good budgeting habits lead to the accumulation of wealth and individuals can
improve their living standards and respond to new opportunities (Fiergbor, 2020).

Manju (2016) suggest that students must be encouraged to save money by minimizing
wasteful expenses and maintaining track of their expenditure. It’s important that college
students understand the essence of savings despite their levels of income. Having enough
money saved up can help students pay off their student loans early and lessen the financial
stress that can come with loan payments. A common trend among recent college graduates
is to spend everything that they earn as soon as their paychecks come in. This is usually the
first time that these individuals have had large amounts of steady income, making them feel
wealthy and empowered to buy new things. Many use it as an opportunity to buy a new
wardrobe, go on a nice vacation, or purchase a new car. Syahrom, Nasrudin, Yasin, Azlan,
and Manap (2017) opine that college graduates should start saving because saving money
is the greatest way to achieve great wealth. It is the only way that people can let their money
work for them, rather than having to work for their money.

16
Karlson (2017) examined the saving and spending habits of college students in the United
States. The pool of 230 participants was composed of 174 women and 56 men,
representative of eight years of graduating classes, 2009-2016, from Connecticut College.
Students comprised 29.1% of the participants and alumni made up the remaining 70.9%.
Participants completed a survey including three quantitative measures on credit card use,
financial well-being, and attitudes toward debt, as well as an extensive demographic
questionnaire regarding spending and saving habits. Results suggested that participants
overestimated future salaries, making it difficult for them to smooth current consumption
based on future earnings as predicted by the life-cycle model. Students who were confident
financially were more responsible with their credit cards and more tolerant of debt.

In a related study, Villanueva (2017) analyzed spending and saving behavior among
students of various class years, ethnicities, and gender at Skidmore College using data
collected from an original survey. The models incorporate both demographic
characteristics as well as pertinent economic theory. Results indicate that Whites and
Asians spend significantly more than other ethnicities while Blacks save significantly more.
Findings also provide support for the Permanent Income Hypothesis; however, no
significance was found regarding Hyperbolic Discounting.

Nasiri, Sultani, and Chandrashekhar (2021) investigated the saving and spending behavior
of Afghan Students in Mangalore City, India. Three different categories of students,
undergraduate, postgraduate, and research scholar, are taken into consideration. The study's
main objective was to determine how Afghan students manage their income and
expenditure while pursuing higher studies in India. The study also aims to determine the
reasons for savings and whether there is any significant difference in the three categories
of respondents’ spending patterns. It was found that there exists a significant difference in
the spending pattern of the three groups of students. Besides, it was also noticed that male
and female respondents have slightly different reasons for savings. The Afghan students
were thrifty about spending money and had a relatively higher propensity to save by
reducing their expenses, and they had the habit of paying fixed costs first. The study further
revealed that Afghan students have not been saving regularly. They were reluctant to shop
if they were short of budget. Male students save their money for an emergency, education,
and other unforeseen purposes. Female students save for an emergency, and higher
education, and increase their level of savings.

17
2.4 Investing and Spending Habits of College Students
Investment is defined as the commitment of current financial resources to achieve higher
gains in the future. Investment has two attributes, namely, time and risk. Investing is
different than saving. Investments by individuals are as vital to personal financial well-
being and security as to a healthy economy (Lewis & Messy, 2017). By the nature of the
investment decision, one can easily notice its connection to planning for retirement since
the resources are spent in the current environment, but the benefits are expected over an
extended period in the future. Many individuals find it difficult to take this investment
decision due to several reasons. Some of these reasons may be explained by inadequate
financial literacy but others may be to factors such as the inability to identify viable
investment opportunities or the inability to raise enough to take up possible investment
opportunities (Khan, Rabbani & Kadoya, 2020).

College can be an excellent time to begin exploring investment opportunities. Many

students are intimidated and assume that investing is too complicated and too hard (Pertiwi,
Basana & Yasinta 2020). Investing early can help college students build healthy financial
habits and prepare for the future. Investment is something that must be considered by a
student because the funds invested will increase over time, investment also helps students
to meet short-term and long-term goals. College students should start investing to safeguard
their futures. While the investment may feel inconsequential in the beginning, they have
time working in their favor and it will grow over time as well as their financial discipline.
Having a personal stake in investing can help a student achieve a sense of pride in their
financial future. Hence, investment as a student is important (Nofsinger, 2022).

Yumurtaci and Bagis (2020) studied University Students' preferences for investments at
individual and national levels in the 21st century. For this purpose, a questionnaire is applied
to randomly select 550 university students in Turkey. Accordingly, students have mostly
preferred that investments should be primarily made in the education sector at the national
level while investment made for the social security system is placed on the last rank. In
addition, education is the most important individual investment choice of participants. On
the other hand, information technologies, energy, and agriculture are identified as the most
significant investment areas, which could potentially increase the global competitiveness
of their home country. Another important outcome of this research is that students prefer
to invest their individual savings in gold and real estate investments, respectively.

18
2.4.1 Stocks

According to Sulthan (2020), stocks are a type of security that gives stockholders a share
of ownership in a company. Investing in stocks means buying shares of ownership in a
public company. Those small shares are known as the company’s stock, and by investing
in that stock, an individual is hoping the company grows and performs well over time. The
stock market, like any other market, is the place that brings together buyers and sellers of
stocks. By investing in a company, the investor becomes the owner of the company
proportionate to the invested capital. When companies are doing profitable business,
investors are compensated by an increase in the share value or by dividend payments.
Companies can buy back their own shares decreasing the number of shares outstanding,
thus increasing the value of the remaining shares (Finra, 2017).

Compared with the USA, Ampudia and Ehrmann (2017) note that stock market
participation by individuals in Europe is far lower. The problem is more pronounced in
Africa where household investment, in general, is deemed to be very low. For most college
students, investing is probably not something that regularly crosses their minds. Investing
in the stock market may seem like a foreign concept to many, but it doesn’t have to be.
Hermanto (2017) stresses that students must be provided with knowledge of how important
to participate in investment in the capital market are to increase their interest to act more in
the capital market. College students investing in stocks offer them the greatest potential for
growth (capital appreciation) over the long haul (Ho & Njindan-Iyke, 2017).

Owusu, Anokye, Otieku, and Ahinful (2021) examined the attitudes of university students
toward stock market investment and investigates the factors that influence their willingness
to invest in stocks. A survey-based method of research was adopted, and data was collected
from 473 students from the University of Ghana Business School by means of a
questionnaire. The partial least square structural equation modeling (PLS-SEM) technique
was used to analyze the data. The results demonstrate that two dimensions of the money
attitude are constructed: obsession and viewing money as a good thing are important
predictors of an individual’s willingness to invest in stocks. The results also show that
financial literacy, ethical stance towards stock market investment, and financial risk attitude
of an individual have important implications on willingness to invest in stocks. Given that
stock market participation at the individual level is low in most countries, an understanding

19
of the factors that influence individuals’ decisions to invest in stocks may be useful in
developing the appropriate strategies to encourage people to invest in stocks.

Gainau (2020) investigated whether job opportunities drive students’ investment attitudes
and whether these attitudes, subjective norms, and behavior controls shape their intentions
to stock investment. 100 student investors from 9 higher education institutions in North
Sulawesi are employed in this study. Study findings indicate that attitudes toward investing
stock among students will be more positive if supported by the availability of immense job
opportunities in the capital market. Broader career prospects in the capital market can
inspire students to learn stock investment. All actions are determined individually rather
than externally. Thus, students are seen as individuals who have acknowledged investment
because their intentions are determined personally. However, self-control must be mastered
to avoid gambling or becoming a gambler. Behavioral controls play an important role in
shaping students’ optimism about stock investments.

Gainau (2020) examined factors that influence stock investment intention among students.
The population in this study were all individual student investors registered at the Indonesia
Stock Exchange Investment Gallery in the North Sulawesi and Gorontalo Regions. Sample
selection was based on the purposive sampling method. Data analysis was performed with
SmartPLS 3.0 M3. The results found that student attitudes are determined by employment
opportunities in the capital market. In addition, attitudes and behavioral control also have
a significant effect on student intention. This is different from subjective norms which do
not affect student investment intention.

2.4.2 Investment Club

Investment clubs are defined as groups of people including colleagues, friends, family, or
clients coming together to pool money for purposes of investment (Ojijo, 2016). Investment
clubs help new investors collectively learn how to invest while making low-risk investment
decisions and returns. Clubs are also a good way for experienced investors to save time by
making investment decisions with their peers (Chisolm, 2018). Given that the investment
clubs are made up of several people who are members, the decisions taken by the club are
based on the general decision-making process of the members. It is for this reason that the
decision-making process of the individual members affects the general collective decision
of the investment club. An investment club avoids the often-burdensome management fees

20
that all mutual funds levy on their unit holders’ fees which can have a significant impact
on the overall return provided by mutual funds (Bertrand, 2016).

Universities are constantly seeking ways to better equip their students for the ever-changing
and demanding business world of tomorrow (Seiler & Seiler, 2017). While in college a
student can either join an existing club or create one and invite friends to join. This is a
group comprising individuals who pool their resources together to access investments that
would have been out of their reach as individuals, for example, real estate. As members of
an investment club individuals must be disciplined especially on contributions because
without it the investment club will never achieve its goals (Chisolm, 2018). By pulling the
resources together the student investment club can be able to start a business that
individuals could not able. Investment clubs can help provide a practical base for students
who are interested in finance and investments while investment funds offer the opportunity
for more advanced hands-on training (Bergquist, Keig & Wilkinson, 2020).

Mugambe (2022) study determined the relationship between financial literacy and
collective investment decisions among investment club members in Uganda. The study
used quota sampling techniques to reach out to 66 individuals belonging to investment
clubs with a view of assessing their financial literacy levels based on financial literacy
knowledge as the key dimension of financial literacy. The specific objectives were to assess
the effect of three identified indicators of financial literacy knowledge (Knowledge of
interest rate, knowledge of inflation, and knowledge of liquidity) on the investment
decision-making by the investment club members. A financial literacy assessment tool was
used to assess levels of financial literacy and later on, correlations and regressions were
conducted to respond to the specific objectives. All the indicators of financial literacy
knowledge were found to have a positive albeit low and moderate relationship with
investment decision-making. Other factors outside the identified three indicators were
found to contribute substantially to the investment decision-making by the investment club
members and this formed part of the recommendations that require stakeholders to pay
attention.

21
2.5 Chapter Summary
The chapter reviewed the literature on the financial literacy and spending habits of college
students. It focused on three elements: borrowing, financial planning, and investing. The
cost of attending a college or university is often cited as the source for student borrowing.
Financial planning is essential in college because it helps students understand how they can
manage their money. It also helps them make the most of their resources. Investing early
can help college students build healthy financial habits and prepare for the future. The
following chapter discusses the methodology to be used in the study.

22
 CHAPTER THREE

3.0 RESEARCH METHODOLOGY

3.1 Introduction
The chapter details methodology used for the study. It includes the research design,
population, sample size, data collection and analysis techniques.

3.2 Research Design

The research design refers to the overall strategy or plans for conducting a study, including
the methods and procedures that will be used to collect and analyze data (Creswell, 2018).
This study adopted a descriptive research design. Descriptive research is a type of research
method that aims to describe a phenomenon, or a population based on its observable
characteristics. According to Neuman (2017), descriptive research provides “a snapshot”
of the subject being studied, without attempting to establish casual relationships or make
predictions about future outcomes, and this study is no exception; the researcher seeks to
learn more about how financial literacy plays a greater role on the spending habits of
college students using USIU-Africa as a case study. The information collected in this study
was transformed into a standardized format to facilitate straightforward comparisons. The
dependent variable is spending habit while the independent variables include borrowing,
financial planning, and investing.

3.3 Population and Sampling Design

3.3.1 Population

A population refers to a group of individuals, objects, or events that share common

characteristics or attributes and are of interest to a researcher (Franfort-Nachmias & Leon-
Guerrero, 2018). The target population for this study consisted of 254 students enrolled in
the United States International University- Africa, in Nairobi, Off Thika road around
Kasarani area. The population included Freshman, Sophomores, Juniors, and Seniors. The
population of 254 students, were categorized into four different groups as shown in Table
3.1 below.

23
Table 3.1: Target Population

Category Target Population Percentage

Freshman 61 24 %

Sophomores 75 29.5%

Juniors 58 22.8%

Seniors 60 23.6%

TOTAL 254 100

Source: Researcher, (2023).

3.3.2 Sampling Design

A sample is a subset of individuals or objects selected from a larger population to represent

that population for the purpose of research or analysis (Leedy & Ormrod, 2019). Sampling
helps to ensure that the data collected is representative of the entire population, which is
crucial for the validity and reliability of research findings (Sekaran & Bougie, 2016). The
design for this study outlined the sampling frame, sample size, and sampling techniques in
detail.

3.3.2.1 Sampling Frame

A sampling frame refers to a list or set of individuals, items, or units that are potentially
eligible for inclusion in a research sample (Salganik, 2020). The sampling frame is the
starting point for the sampling process and is used to identify and select a representative
sample of the population of interest. The study utilized a sampling frame that was derived
from the four categories of students at USIU-Africa. The utilization of this sampling frame
was undertaken with the explicit objective of ensuring its contemporaneity,
comprehensiveness, and relevance, all of which are imperative for the attainment of the
research objectives. In this study, the sampling frame was students from each academic
year of study that is Freshman (61), Sophomores (75), Juniors (58), and Seniors (60).

24
3.3.2.2 Sampling Technique

The researcher employed a probability sampling technique to ensure the representation and
broad applicability of the results to the wider population. The researcher used two sampling
techniques to select a sample of student: stratified random sampling and simple random
sampling. The stratified random sampling method involves dividing the population of
interest (in this case, all students) into strata or subgroups based on their year of study, that
is, freshman, sophomore, junior, and senior year students. According to Kothari (2021),
stratified sampling is an efficient technique that reduces the sampling error and ensures that
each subgroup is represented in the sample.

Simple random sampling is a method of selecting a sample from a population where each
member of the population has an equal chance of being selected, and the selection of one
member does not influence the selection of another member (Babbie, 2019). This method
is one of the most straightforward and efficient ways of obtaining a representative sample
from a population (Kothari, 2020). The aim of this method is to ensure that every member
of the population has an equal chance of being selected and eliminates any bias that may
be present in the selection process. The researcher selected students across different
academic levels, including freshman, sophomores, juniors, and seniors.

3.3.2.3 Sample Size

Sample size refers to the number of individuals, observations, or units of analysis included
in a research study's sample. It is an essential component of research design, as it affects
the study's statistical power, the accuracy of the results, and the ability to generalize the
findings to the population of interest (Sekaran & Bougie, 2016). This number is commonly
denoted by the letter n. The precision of our estimations and the generalizability of our
study are two statistical features that are affected by the size of the sample.

In this case, our target population is 254 students of USIU-Africa. The sample size was
calculated using the Yamane formula below:

n =N÷(1+(N(Ꜫ)^2))

Where:

N is the population size

n is the sample size

25
Ꜫ is the error

Target population is 254 at 95% confidence interval,

Ꜫ= 0.05

Therefore,

n = 254÷ (1+(254×0.05^2))

n= 155, which is the sample size

Sample size distribution was as shown below.

(61÷254) ×155= 37.2

(75÷254) × 155= 45.8

(58÷254) × 155= 35.4

(60÷254) × 155= 36.6

Sample size distribution

Table 3.2 Sample size distribution

Category Target Population Sample size % Percentage

distribution
Freshman 61 37.2 24
Sophomore 75 45.8 29.5
Junior 58 35.4 22.8
Senior 60 36.6 23.6
TOTAL 254 155 100

Source: Researcher, (2023).

3.4 Data Collection Methods

According to Bryman and Bell (2019), “Data collection method refers to the process of
gathering information from various sources for research or analysis purposes. A
questionnaire was used to collect information for this investigation. The research

26
objectives guided the development and organization of the questionnaire. The
questionnaire included both open and closed questions. Because questionnaires employ
the respondents' own responses for analysis, rather than those of the interviewer, they are
favored as the most practical and economical technique of data collection. The
questionnaire was broken down into sections, the first of which was just an introduction
letter, followed by profile questions. The last part of the survey consisted of questions
based on the study's three aims: effects of borrowing, Influence of financial planning, and
investing on the spending habits of college students, particularly USIU-Africa students.
The questions were organized using a 5-point Likert scale, and the matrix question format
was also employed. The scale had the options "strongly disagree," "disagree," "neutral,"
"agree," and "strongly agree."

Primary data was collected by the researcher and a research assistant's administration of
paper questionnaires to students at the United States International University- Africa.

The researcher administered the questionnaires via a drop-and-pick system during class
hours and google survey forms to ensure quick and full participation from the students
directly.

3.5 Research Procedures

The research procedure is a set of activities and techniques used to conduct research
(Gonzalez, L., 2017). For this study, the proposal was submitted to the supervisor for
review. Once the supervisor reviewed it, the researcher secured approval from the
Chandaria School of Business's research permit committee, the IRB's ethical approval, and
the National Commission for Science, Technology, and Innovation's national research
permit (NACOSTI). Through clearance by IRB, the researcher was given an introduction
letter from the university. This letter was used to introduce the study to the respondents.
Assisted by three research aides, the researcher distributed questionnaires to participants
using digital methods such as google forms sent via mobile applications, email, as well as
printed copies. Respondents were allotted one week to provide feedback on the
questionnaires, although in numerous instances, they completed them while the research
assistants were present. The personal information and responses, although furnished by
most respondents, were handled with a strong commitment to confidentiality. The
questionnaires were distributed to the students of USIU-Africa in their respective classes
and were then collected later after class to provide them with adequate time to complete

27
the survey. A follow-up was conducted with the assistance of the lecturers in charge at that
time to inquire if the respondents encountered any challenges while answering the
questions.

3.6 Data Analysis Methods

Quantitative data were gathered from this study. Using quantitative methods, the researcher
evaluated the data to see how changing the independent variables affected the dependent
variable at the same time. The researcher cleaned the data and conducted a multiple
regression analysis with the help of SPSS, the Statistical Package for the Social Sciences.
In addition, the mean and standard deviation were utilized to analyze the descriptive
statistics. The study also included a linear regression analysis to determine the strength of
the connection between the independent and dependent variables after checking and
analyzing data. Tables, pie charts, graphs, and other graphic displays were used to present
the findings.

The Multiple Linear Regression model is specified as follows:

Y=βo+β1X1+β2X2+β3X3+ Ɛ
Where:
Y is the spending habits of college students
X1= Borrowing

X2= Financial planning

X3= Investing

Ɛ = Error Term

3.7 Chapter Summary

This chapter details the strategies and techniques that were utilized to investigate the role
of financial literacy on the spending habits of college students. The raw data was analyzed
using SPSS and Microsoft Excel, and the results were displayed in graphical and pie chart
formats. This section summarizes the research strategy, population, sampling strategy,
sampling frame, sampling technique, sample size, data collection methods, research
processes, data analysis strategies, and chapter summary. After that, the results of our
investigation were discussed in Chapter 4.

28
 CHAPTER FOUR

4.0 RESULTS AND FINDINGS

4.1 Introduction

This chapter presents results and findings regarding the research questions that aims
to understand the role of financial literacy on the spending habits of college students
specifically at USIU-Africa in Nairobi Kenya. The chapter presents the response rate,
general information which includes gender, years of study, age, employment status.
Sections presenting results related to each of the research questions then follow. The
last section is the summary of the whole chapter.
4.1.1 Response Rate

The response rate represents the total number of respondents who participated in the
study presented in its percentage form. The researcher shared a google link to the
questionnaire to USIU-A students. The target sample size was 155 and a total of 106
responses were received. This represented a 68% response rate as shown in Figure
4.1. According to Fincham (2008), the goal of researchers should be to obtain response
rates approximating 60 percent.

32%

68%

Figure 4.1Respondents Response

29
4.2 Demographic Information
4.2.1 Gender of Respondents

Regarding gender distribution, Majority of the respondents were female (53%) while
the male respondents were 46%. This shows that both genders were well represented,
and the study could not suffer from gender bias as shown in figure 4.2.

Male
47%
Female
53%

Figure 4.2 Gender of the Respondents

4.2.3 Year of Academic

The study sought to establish the year of study at USIU-A. As shown in Figure 4.3,
majority of the respondents were senior students at 54.4%. This was followed by
freshmen at 22.3%, and lastly sophomore and junior at 11.7% each. This means that
more than 60% were junior and senior students.

Senior Senior, 54.4

Junior Junior, 11.7

Sophomore Sophomore, 11.7

Freshman Freshman, 22.3

0.0 10.0 20.0 30.0 40.0 50.0 60.0

Figure 4.1 Year of Academic

30
 4.2.4 Respondents’ Age

The study sought to establish the age of students who participated in the survey. As
shown in Figure 4.4, most of the respondents had been between 22-25 years which
represented 41.7% of the respondents. This was followed by those between 18-21
years at 35.0%, those between 26-30 years at 13.6%, then those over 30 years at 6.8%,
and lastly those under the age of 18years at 2.9%. These findings imply that
moderately a good number of the students had attained the age of 18 years.

Over 30 years Over 30 years, 6.8

26-30 years 26-30 years, 13.6

22-25 years 22-25 years, 41.7

18-21 years 18-21 years, 35.0

Under the age of

Under the age of 18
18, 2.9

0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0

Figure 4.4 Respondents Age

4.2.5 Respondents’ employment status

The study also sought to establish the employment status of USIU-A students. As
shown in Figure 4.5, the most students had part time jobs at 45.6% followed by self-
employed at 21.4%, then unemployed at 18.4%, students only at 11.7% and lastly
those that are fully employed at 2.9%. These findings imply that a good number of
students had access to cash.

31
 Employed full-time,
Employed full-time
2.9

Employed part-time,
Employed part-time
45.6

Self-employed Self-employed, 21.4

Unemployed Unemployed, 18.4

Student only Student only, 11.7

0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 50.0

Figure 4.2 Respondent employment status

4.2.6 Financial Assistance

The study also sought to establish the employment status of USIU-A students. As shown
in Figure 4.6. Majority of the students get financial assistance from relatives or sponsors
representing 75% of the respondents as compared to those that are self-sponsored at 25%

No
25%

Yes
75%

Figure 4.3 Financial Assistance

4.3 To examine how borrowing affects the spending habits of college students at USIU-
Africa
The first objective sought to examine how borrowing affects the spending habits of college
students at USIU-Africa. The descriptive statistics were first presented followed by the
inferential statistics.

32
4.3.1 Descriptive statistics of borrowing effects and spending habits.

Participants were required to indicate the extent to which they are likely to agree with
statements relating to new entrants in the market on a 5-point Likert scale (Strongly
Disagree-1, Disagree-2, Neutral -3, Agree-4, Strongly agree-5). The summary of
descriptive findings was presented in table 4.1.
As indicated in table 4.1, Participants disagreed and strongly disagreed at 63.4% that
they use borrowing to assist them reach their short-term financial objectives and goals
as compared to 25.7% who agreed. 78.5% of the respondents disagreed with the
statement that they frequently take out loans without a defined repayment strategy as
compared to 7.1% who agreed. 43% of the respondents agreed that they feel bad
whenever they must take out a loan to pay their bills as compared to 41% who
disagreed with this statement. 60% of the respondents try to limit their borrowing as
much as feasible as compared to 28% who do not. 65.3% disagreed to the statement
that they frequently have difficulty making their loan installments as compared to
11.2% who agreed to the statement.45.4% also disagreed to the statement that they
worry about how their debt may affect their future and feel stuck by it as compared to
36.1% who agreed to the statement. 55% of the respondents disagreed to the statement
that they consider borrowing money to be an essential component of managing their
finances on the other hand 24% agreed to the statement. 49% disagree to the statement
that Borrowing is a good idea for college students like them while 27.6% agree to the
statement. 54.5 disagree to the statement that they can purchase items that they
otherwise wouldn't be able to afford by borrowing money as compared to 26.3% who
agreed to the statement.

33
 Table 4.1 Borrowing effects on spending habits

Strongly Disagree Neutral Agree Strongly Mean S. D

Disagree Agree
I use borrowing to assist
me reach my short-term
48.5% 14.9% 10.9% 19.8% 5.9% 2.198 1.379
financial objectives and
goals.
I frequently take out loans
without a defined 66.3% 12.2% 14.3% 5.1% 2.0% 1.643 1.038
repayment strategy.
I feel bad whenever I must
take out a loan to pay my 33.0% 8.0% 16.0% 15.0% 28.0% 2.970 1.642
bills.
I try to limit my borrowing
17.0% 11.0% 12.0% 33.0% 27.0% 3.420 1.430
as much as feasible.
I frequently have difficulty
making my loan 54.1% 11.2% 23.5% 10.2% 1.0% 1.929 1.133
installments.
I worry about how my debt
may affect my future and 36.1% 9.3% 18.6% 18.6% 17.5% 2.722 1.539
feel stuck by it.
I frequently borrow funds
from friends and relatives 37.4% 10.1% 13.1% 21.2% 18.2% 2.727 1.577
instead of formal lenders.
I consider borrowing
money to be an essential
36.0% 19.0% 21.0% 18.0% 6.0% 2.390 1.302
component of managing
my finances.
Borrowing is a good idea
for college students like 39.8% 9.2% 23.5% 23.5% 4.1% 2.429 1.332
me.
I can purchase items that I
otherwise wouldn't be able
43.4% 11.1% 19.2% 16.2% 10.1% 2.384 1.434
to afford by borrowing
money.

34
4.3.2 Correlation between borrowing effects and spending habits.
A Pearson correlation analysis was done to test the relationship between borrowing effects
and spending habits. The analysis showed that there is an insignificant relationship between
borrowing effects and spending habits (r=0.109, p>0.05). This is an indication that there
are no significant borrowing effects on spending habits as shown in table 4.2 below.

Table 4. 1 Correlation between borrowing effects and spending habits

Correlations
Spending habits Borrowing effects

Pearson Correlation 1 .109

Spending habits Sig. (2-tailed) .297
N 103 94

Pearson Correlation .109 1

Borrowing effects Sig. (2-tailed) .297
N 94 94

4.3.3 Linear Regression between borrowing effects and spending habits.

The results from the model summary table showed that R-square=0.012 indicating that
borrowing predicts 1.2% of the spending habit. Choice as shown in table 4.3 below.
Table 4.3 Model Summary for borrowing effects and spending habits.
Model Summary
Model R R Square Adjusted R Square Std. Error of the
Estimate
1 .109a .012 .001 .73344
a. Predictors: (Constant), Borrowing effects.

35
4.3.4 ANOVA table for Linear Regression between borrowing effects and spending
habits.
The linear regression F statistics shown in the Table 4.4 shows that there was an
insignificant linear relationship borrowing effects and spending habits (F = 1.100, p>.05).
Table 4.4 ANOVA table for Linear Regression between borrowing effects and
spending habits.

ANOVAa
Model Sum of Squares df Mean Square F Sig.

Regression .592 1 .592 1.100 .297b

1 Residual 49.490 92 .538
Total 50.082 93
a. Dependent Variable: Spending habits
b. Predictors: (Constant), Borrowing effects.

4.3.5 Coefficients for Linear Regression between borrowing effects and spending
habits.
The coefficients tables indicate that the linear regression model Y = β0 + β1X1 is
Y=3.223+0.096X1. This means that, when other factors are held constant, an improvement
in the borrowing by 1%, improved spending habit by 9.6%.
Table 4.5 Coefficients for Linear Regression Between borrowing and spending habits.

Coefficientsa
Model Unstandardized Standardized t Sig.
Coefficients Coefficients
B Std. Error Beta
(Constant) 3.223 .240 13.444 .000
1 Borrowing
.096 .091 .109 1.049 .297
effects
a. Dependent Variable: Spending habits

36
4.4 To find out how financial planning influences the spending habits of college
students at USIU-Africa.
The second objective sought to find out how financial planning influences the
spending habits of college students at USIU-Africa. The summary of findings was
presented in the subsequent sections.
4.4.1 Descriptives statistics for influence of financial planning on spending habits.
Participants were required to indicate the extent to which they are likely to agree with
statements relating to new entrants in the market on a 5-point Likert scale (Strongly
Disagree-1, Disagree-2, Neutral -3, Agree-4, Strongly agree-5). The summary of
descriptive findings was presented in table 4.6.
As indicated in table 4.6, Participants agreed that they track their spending on a regular
basis to ensure that they stay within their budget at 47% as compared to 31.4% who
disagreed, 51% disagreed that they frequently make spontaneous purchases without
thinking about how they may affect their budget as compared to 26% who agreed to this
statement. 43.5% fully comprehend the financial goals they have and how they can
accomplish them. 47.5% of the respondents oversee their finances and are confident in their
abilities to handle them as compared to 24.8% who do not. 46% of the respondents have a
savings strategy in place and set away money on a regular basis for emergencies or future
costs as compared to 38% who do not have a strategy. 50% of the respondents disagreed to
the statement that their financial duties frequently overwhelm them, and they struggle to
handle their money adequately. 59.6% of the respondents strongly disagreed and disagreed
to the statement that they create a budget at the start of each month and try to keep to it as
much as possible as compared to 22.2% of those who agreed. 51% of the respondents do
not put paying off my debts ahead of spending on non-essentials as compared to 33% who
agree to the statement. The respondents rated the statement equality at 44% that the
frequently use financial applications to help the manage their finances. Majority of the
respondents at 43.9% do not seek counsel or direction from financial specialists or reliable
sources to make educated financial decisions.

37
Table 4.6 Financial Planning

Strongly Disagree Neutral Agree Strongly Mean S.D

Disagree Agree
I track my spending on a
regular basis to ensure
16.7% 14.7% 21.6% 24.5% 22.5% 3.216 1.390
that I stay within my
budget.
I frequently make
spontaneous purchases
without thinking about 31.0% 20.0% 23.0% 18.0% 8.0% 2.520 1.314
how they may affect my
budget.
I fully comprehend the
financial goals I have and
14.1% 12.1% 30.3% 27.3% 16.2% 3.192 1.259
how I can accomplish
them.
I oversee my finances and
I am confident in my 11.9% 12.9% 27.7% 29.7% 17.8% 3.287 1.244
abilities to handle them.
I have a savings strategy
in place and set away
money on a regular basis 22.0% 16.0% 16.0% 27.0% 19.0% 3.050 1.445
for emergencies or future
costs.
My financial duties
frequently overwhelm
me, and I struggle to 24.0% 26.0% 24.0% 14.0% 12.0% 2.640 1.314
handle my money
adequately.
I create a budget at the
start of each month and
39.4% 20.2% 18.2% 10.1% 12.1% 2.354 1.402
try to keep to it as much
as possible.

38
I put paying off my debts
ahead of spending on 29.0% 22.0% 16.0% 25.0% 8.0% 2.610 1.348
non-essentials.
To help me manage my
finances more
successfully, I frequently 27.0% 17.0% 12.0% 23.0% 21.0% 2.940 1.530
use financial applications
or programs.
To make educated
financial decisions, I seek
counsel or direction from 15.3% 28.6% 19.4% 19.4% 17.3% 2.949 1.342
financial specialists or
reliable sources.

4.4.2 Correlation Between influence of financial planning and spending habits

A Pearson correlation analysis was done to test the relationship between spending habits
and financial planning. The analysis showed that there is insignificant relationship between
spending habits and financial planning (r=0.018, p>0.05). This is an indication that there is
insignificant influence of financial planning on spending habits as shown in the table 4.7
below.
Table 4.7 Influence of financial planning and spending habits.

Correlations
Spending habits Financial planning
Pearson Correlation 1 .018
Spending habits Sig. (2-tailed) .860
N 103 96
Pearson Correlation .018 1
Financial planning Sig. (2-tailed) .860
N 96 96

39
4.4.3 Linear Regression Between influence of financial planning and spending habits.
The results from the model summary table showed that R-square=0.00 indicating that
financial planning predicts 0.00% of the spending habits. Choice as shown in the table 4.8
below.
Table 4.8 Model Summary for influence of financial planning and spending habits.

Model Summary
Model R R Square Adjusted R Square Std. Error of the
Estimate
1 .018a .000 -.010 .73376
a. Predictors: (Constant), Financial planning

4.4.4 ANOVA table for Linear Regression Between influence of financial planning
and spending habits.
The linear regression F statistics shown in the Table 4.4 shows that there was an
insignificant linear relationship Between financial planning and spending habits (F = 0.031,
p>.05).
Table 4.9 ANOVA table for Linear Regression between financial planning and
spending habits
ANOVAa
Model Sum of Squares df Mean Square F Sig.

Regression .017 1 .017 .031 .860b

1 Residual 50.609 94 .538
Total 50.626 95
a. Dependent Variable: Spending habits
b. Predictors: (Constant), Financial planning

4.4.5 Coefficients for Linear Regression Between influence of financial planning and
spending habits.
The coefficients tables indicate that the linear regression model Y = β0 + β1X1 is Y=
3.421+0.016X1. This means that, when other factors are held constant, an improvement in
the financial planning by 1%, improves spending habits by 1.6%.

40
Table 4.10 Coefficients for Linear Regression Between influence of financial planning
and spending habits
Coefficientsa
Model Unstandardized Standardized t Sig.
Coefficients Coefficients
B Std. Error Beta
(Constant) 3.421 .278 12.297 .000
1 Financial
.016 .092 .018 .177 .860
planning
a. Dependent Variable: Spending habits

4.5 To analyze how investing affects the spending habits of college students at USIU-
Africa.
The third objective sought to analyze how investing affects the spending habits of college
students at USIU-Africa. The summary of findings was presented in the subsequent
sections.
4.5.1 Descriptive statistics for investing effects on spending habits.
Participants were required to indicate the extent to which they are likely to agree with
statements relating to new entrants in the market on a 5-point Likert scale (Strongly
Disagree-1, Disagree-2, Neutral -3, Agree-4, Strongly agree-5). The summary of
descriptive findings was presented in table 4.11.
The respondents were asked to rate the extent they agree with the statement that they are
well-versed in the many forms of investments available to them. 40.4% of the respondents
strongly disagreed and disagreed with the statement compared to 32.3% who agreed and
strongly agreed to the statement.
The respondents were asked to rate the extent they agree with the statement that Rather
than investing in stocks or mutual funds, they choose to put my money in a savings
account.38.4% of the respondents strongly agreed and agreed with the statement compared
to 37.4% who disagreed and strongly disagreed to the statement.
The respondents were asked to rate the extent they agree with the statement that they feel
that investment is only for wealthy people.38.4% of the respondents strongly agreed and
agreed with the statement compared to 37.4% who disagreed and strongly disagreed to the
statement.

41
The respondents were asked to rate the extent they agree with the statement that they have
never contemplated investing as a means of achieving their financial objectives. 56.6% of
the respondents strongly disagreed and disagreed with the statement compared to 23.2%
who agreed and strongly agreed to the statement. 49.5% of the respondents strongly
disagreed and disagreed with the statement that they frequently make rash investing
decisions without conducting an adequate study or speaking with a financial professional
as compared to those who agreed to the statement at 30.3%. 69.7% of the respondents
disagreed with the statement that they feel investing is too complex for them to comprehend
as compared to those who agreed at 15.1%. Majority of the respondents 66.7% have bought
cryptocurrencies because they feel it will provide them with rapid profits. 52.1% of the
respondents want to learn more about socially responsible investment and how it relates to
their beliefs compared to 29.6 who disagree with the statement.56.4% of the respondents
disagreed to the statement that they have a long-term investment strategy in place and
routinely check their portfolio to ensure it aligns with their objectives as compared to 38.9%
who agreed to the statement.

42
Table 4.11 Investing effects.
Strongly Disagree Neutral Agree Strongly Mean S.D
Disagree Agree
I am well-versed in the
many forms of
20.2% 20.2% 27.3% 19.2% 13.1% 2.848 1.312
investments available to
me.
I am apprehensive about
investing my money into
18.2% 19.2% 24.2% 17.2% 21.2% 3.040 1.399
investments because I'm
terrified of losing it.
Rather than investing in
stocks or mutual funds, I
35.4% 29.3% 17.2% 8.1% 10.1% 2.283 1.302
choose to put my money
in a savings account.
I feel that investment is
40.8% 20.4% 21.4% 10.2% 7.1% 2.224 1.281
only for wealthy people.
I have never
contemplated investing
35.4% 21.2% 20.2% 14.1% 9.1% 2.404 1.340
as a means of achieving
my financial objectives.
I frequently make rash
investing decisions
without conducting an
29.3% 20.2% 20.2% 20.2% 10.1% 2.616 1.361
adequate study or
speaking with a financial
professional.
I feel investing is too
complex for me to 56.6% 13.1% 15.2% 13.1% 2.0% 1.909 1.196
comprehend.

43
I've bought
cryptocurrencies
because I feel it will 5.1% 14.1% 14.1% 26.3% 40.4% 3.828 1.246
provide me with rapid
profits.
I want to learn more
about socially
responsible investment 28.6% 23.5% 18.4% 14.3% 15.3% 2.643 1.423
and how it relates to my
beliefs.
I have a long-term
investment strategy in
place and routinely
35.0% 21.4% 4.9% 17.5% 21.4% 2.689 1.603
check my portfolio to
ensure it aligns with my
objectives.

4.5.2 Correlation Between investing effects and spending habits.

A Pearson correlation analysis was done to test the relationship between spending habits
and investing effects. The analysis showed that there is a significant Correlation Between
spending habits and investing effect (r=0.251, p<0.05). This is an indication that there is a
significant effect of investing on spending habits as shown in the table 4.12 below.

Table 4.12 Correlation Between investing effects and spending habits.

Correlations
Spending habits Investing effects

Pearson Correlation 1 .251*

Spending habits Sig. (2-tailed) .013
N 103 97
Pearson Correlation .251* 1
Investing effects Sig. (2-tailed) .013
N 97 97
*. Correlation is significant at the 0.05 level (2-tailed).

44
4.5.3 Linear Regression Between investing effects and spending habits.
The results from the model summary table showed that R-square=0.063 indicating that
spending habits predicts 6.3% of the investments. Choice as shown in the table 4.13 below.
Table 4.13 Model Summary for investing effects and spending habits.

Model Summary
Model R R Square Adjusted R Square Std. Error of the
Estimate
1 .251a .063 .053 .69895
a. Predictors: (Constant), Investing effects.

4.5.4 ANOVA table for Linear Regression Between investing effects and spending
habits.
The linear regression F statistics shown in the Table 4.14 shows that there was a statistical
and significant linear relationship Between spending habits and investment (F = 6.371,
p<.05).

Table 4.14 ANOVA table for Linear Regression Between investing effects and
spending habits.

ANOVAa
Model Sum of Squares df Mean Square F Sig.

Regression 3.112 1 3.112 6.371 .013b

1 Residual 46.410 95 .489
Total 49.522 96
a. Dependent Variable: Spending habits
b. Predictors: (Constant), Investing effects.

4.5.5 Coefficients for Linear Regression Between investing effects and spending
habits.
The coefficients tables 4.15 indicate that the linear regression model Y = β0 + β1X1 is
Y=2.703+0.281X1. This means that, when other factors are held constant, an improvement
in the spending habits by 1%, improves investments by 28.1%.

45
Table 4.15 Coefficients for Linear Regression Between investing effects and spending
habits.

Coefficientsa
Model Unstandardized Standardized t Sig.
Coefficients Coefficients
B Std. Error Beta
(Constant) 2.703 .304 8.886 .000
1 Investing
.281 .111 .251 2.524 .013
effects
a. Dependent Variable: Spending habits

4.6 Chapter Summary

The significant findings for each study questions have been summarized in this section.
The study response rate, demographic information, descriptive sections that indicate the
means and standard deviation for each of the study variables, and inferential statistics that
exhibit the correlation and linear regression analysis results are all included in this chapter.
The summary of findings, discussion, conclusions, and study recommendations are
outlined in the next chapter.

46
 CHAPTER FIVE

5.0 SUMMARY, DISCUSSION AND CONCLUSION

5.1 Introduction
This chapter unpacks the discussion on critical findings, offers conclusion of the same, and
some recommendations. The presentation of the findings and the conclusion is offered with
regards to the specific objectives introduced in chapter one. This study looked to
comprehend the role that financial literacy must play in determining the spending habits of
college students, specifically those at USIU-Africa located in Nairobi, Kenya. To achieve
this general objective, the researcher establishes the borrowing effect on spending habits,
the influence if financial planning on the same, and the effect of investing. The chapter
seeks to understand how the results of this study correlate to the results offered by past
studies.

5.2 Summary
This study intended to assess the role of financial literacy on the spending tendencies of
college students, particularly at USIU-Africa in Nairobi Kenya. The results of the study
aim to benefit the essential stakeholders like the government, students, society, financial
institutions, and universities. The study was guided by the following research objectives:
how borrowing affects the spending habits of college students; how financial planning
influences the spending habits of college students; and how investing affects the spending
habits of college students.

Descriptive study design was adopted with the target population of 254 students of USIU-
Africa in Nairobi, Kenya. Primary data was collected using questionnaires that were
administered to the sample of 155 respondents out of which 106 were fully filled and
returned. The patterns in the collected data were analyzed with the aid of descriptive
statistics such as tables, mean, and standard deviations. Also, simple linear regression
analysis was used in generating coefficients for the model and their corresponding t-
statistics and p-values.

The findings on borrowing indicated there is an insignificant relationship between

borrowing effects and spending habits (r=0.109, p>0.05). Also, regression model summary
indicated an adjusted R squared value of 0.001, implying that 0.1% of the variance was
significant. The coefficients tables indicated that the linear regression model Y = β0 + β1X1

47
is Y=3.223+0.096X1. This means that, when other factors are held constant, an
improvement in the borrowing by 1%, improved spending habit by 9.6%.
The findings on financial planning indicated that there is insignificant relationship between
spending habits and financial planning (r=0.018, p>0.05). In addition, the results from the
regression model summary table showed that R-square=0.00 indicating that financial
planning predicts 0.00% of the spending habits. The coefficients tables indicate that the
linear regression model Y = β0 + β1X1 is Y= 3.421+0.016X1. This means that, when other
factors are held constant, an improvement in the financial planning by 1% improves
spending habits by 1.6%.
The findings on investing indicated that there is a significant Correlation Between spending
habits and investing effect (r=0.251, p<0.05). In addition, the results from the model
summary table showed that R-square=0.063 indicating that spending habits predicts 6.3%
of the investments. Also, Pearson correlation analysis indicated that the linear regression
model Y = β0 + β1X1 is Y=2.703+0.281X1. This means that, when other factors are held
constant, an improvement in the spending habits of 1% improves investments by 28.1%.
This study makes use of various forms of analyses to breakdown the results gathered during
the survey. Pearson correlation analysis, coefficient tables, and ANOVA analysis are all
used. The results of the current study prove that there is an insignificant relationship
between two of the three factors, financial planning and borrowing, and spending habits of
the study population. Borrowing and financial planning do not seem to have a significant
relationship with spending habits. Investing however, seems to have a significant
relationship with spending habits. All the mentioned forms of analyses support this general
finding. However, each of the factors affect the dependent variable of spending habits
differently. The results of this study have considerable points of similarity to studies carried
out in the past.

5.3 Discussion
5.3.1 Borrowing Effect to the Spending Habits of College Students at USIU-Africa

The current study offers that 54.5% of the study population are not of the opinion that they
can buy things they otherwise can’t afford through borrowing money. However, 26.3%
agreed with the same sentiments. This finding indicates that 26.3% of the study population
have spending tendencies that are affected by borrowing money. In agreement, a study
carried out by Shaffer in 2018 indicates that students getting their hands-on money that has
no educational objective often spend the same on luxuries like vacations and manicures

48
(Shaffer, 2018). The tendency of college students to need money to accomplish these
luxurious acts comes from a life they are used to in high school. However, in college,
students fail to acknowledge that this lifestyle relies on money that they are not generating.
According to Darolia 2016, these students must pay back this money with compound
interest (Darolia, 2016).

An ANOVA analysis indicated that there was an insignificant linear relationship between
borrowing and spending habits (F = 1.100, p>.05). These results indicate that the spending
habits of college students are not principally affected by the fact that they are using
borrowed money. When it comes to the spending habits that include luxury, it is possible
that these students engage in such spending because of their needs, changing trends, or peer
pressure. It is possible that even with money that is not borrowed, these students might still
have used money for the same purposes because that is what they think or feel money is
supposed to be used for at that point in their lives. Past studies that point to a relationship
between borrowing and spending habits of students might fail to consider the possibility
that loans are the most significant source of funds for college students. Nonetheless, these
studies prove that student loans are mostly spent on luxury items and lifestyle events. Case
in point, Wilbert & Haddad 2017, prove that students use their loans for manicures and
other luxurious things (Wilbert & Haddad, 2017).

This research carried out a Pearson correlation analysis which proved that there is no
significant relationship between borrowing and spending habits (r=0.109, p>0.05). This
finding coincides with the mere 26.3% of the study population that admit their spending is
affected by borrowing. However, past studies carried out might offer differing results. For
example, Cobla & Osei-Assibey 2018, prove that active use of mobile money has a
considerable impact on the spending tendencies of students (Cobla and Osei-Assibey,
2018). This study used a random population of students from a Ghanaian university and
used the least squares regression technique. According to the study, on average, students
using mobile money spend 20 Ghana Cedis monthly compared to their counterparts who
do not use mobile money (Cobla and Osei-Assibey, 2018). Such studies offer contrasting
results to those offered in the current study.

Aside from the Pearson correlation analysis, the research also used linear regression. The
results of the linear regression denote that R-square=0.012. This means that borrowing
foretells 1.2% of the spending tendencies. Even though low, the mentioned percentage

49
forecasts a significant part of spending behaviors. In concurrence, a study carried out by
Heijnen 2019, proves that students who use student loans as a source of finances display a
reduced level of self-control when it comes to spending events Such students are less
sensitive to prices, spend easily, and are more likely to resort to impulsive purchases. This
study on Dutch students proves that there is a significant relationship between student
loans, which is a form of borrowing, and their spending behavior. The study goes on to
recommend that such students be helped with pre-emptive measures to prompt increased
self-control when it comes to spending and probably reduce the worrisome financial actions
(Heijnen, 2019).

5.3.2 Financial Planning Influence on Spending of College Students at USIU-Africa

A Pearson correlation analysis was carried out and determined that there is no significant
link between financial planning and spending habits (r=0.018, p>0.05). These results do
not mean that there is no link between the two variables, rather, it is close to negligible.
Additionally, there is an ANOVA analysis that indicates an insignificant linear link
between financial planning and spending tendencies (F = 0.031, p>.05). Other studies
display how there is a link between the two variables. For instance, Thobejane & Fatoki
2017 carried out a study that recommended the improvement of financial planning through
budgeting as a way of improving the spending habits of university students (Thobejane &
Fatoki, 2017). This study used descriptive statistics and the t-test to come to these
conclusive findings. The research also indicates that most university students operate minus
financial planning and end up spending most of their money on fast food and groceries
(Thobejane & Fatoki, 2017). Evidently, even though small, there is a relationship between
financial planning and spending.

According to the linear regression analysis, R-square=0.00. This means that financial
planning predicts 0.00% of spending habits. While the Pearson correlation analysis offers
proof of a relationship albeit insignificant, the linear regression analysis points to no
relationship at all. Contrastingly, there are studies covered in the literature review that
indicate there to be a relationship between the two variables. Case in point, Archuleta, Dale
& Spann 2019 make the argument that many students do not have the financial discipline
of budgeting and hence tend to overspend (Archuleta, Dale & Spann, 2019). In fact, some
literature links financial planning to past borrowing which then affects spending
(Shahrabani, 2016).

50
The current study also used coefficient tables that indicated Y = β0 + β1X1 is Y=
3.421+0.016X1. According to this result, with all other factors at a constant, improving the
financial planning by 1% only improves spending habits by 1.6%. Past studies concur with
these results. For example, a study by Huang in 2016 proves that financial planning is
important for people to pinpoint their objectives, evaluate their status, and take on important
steps to attain the objectives identified (Huang, 2016). The same study maintains that
financial planning is important for students as it helps them in financial management
thereby making the most of the resources they have. Financial management spreads down
to knowing when and how to spend.

5.3.3 Investing Effect on Spending Habits of College Students at USIU-Africa

A Pearson correlation analysis tested the link between investing and spending habits.
According to the results, there is a significant relationship between investing and spending
habits (r=0.251, p<0.05). It is probably for this reason that literature in chapter two point
to institutions of higher learning attempting to equip their students with knowledge about
making investments. According to Seiler & Seiler 2017, universities keep on looking for
new ways to arm their students to thrive in the dynamic and demanding business world
around them (Seiler & Seiler, 2017). According to past studies, the tendency of universities
to ensure that their students are aware in terms of making investments means that they
recognize its significance. This current study proves that the two variables of making
investments and spending habits have a positive relationship.

There are other forms of analysis that support the finding that there is a significant
relationship between investing and spending habits. The ANOVA analysis proves that there
is a statistical and significant linear relationship between investing and spending tendencies
(F = 6.371, p<.05). Additionally, the linear regression analysis proves that R-square=0.063.
This means that investments foretell 6.3% chances of spending tendencies. These results
indicate that a student who makes investments spends differently from one that does not
invest in any way. In support of this, past studies indicate the effort to ensure that students
are wise in terms of investment to enable them to improve their spending. Case in point,
according to Gainau 2020, the investment attitudes amongst students might improve in
positivity if there is a support of job prospects in the capital market (Gainau, 2020).
Spending habits also seem to influence the tendency to make investments. According to the
current study, the coefficient tables indicate that linear regression model Y = β0 + β1X1 is

51
Y=2.703+0.281X1. This finding means that with every other factor at a constant, when
spending tendencies improve by 1%, investments consequentially improve by 28.1%. The
current study also explores the effect that the dependent variable might have on the
independent variable. While making investments are proven to affect spending habits, it is
also possible that how one spends affects their chances of making investments.

5.4 Conclusion
5.4.1 Borrowing Effect to the Spending Habits of College Students at USIU-Africa

The current study points to an insignificant relationship between borrowing and spending
habits. Even though there is a link between the two variables, it seems to be close to
negligible. However, while this study does not seem to establish a considerable link
between the two variables, past studies covered in the literature review section report
otherwise. There are several studies referred to that prove there is a relationship where
borrowing negatively affects spending habits of students. Nonetheless, it is also important
to note that the effect on spending needs to consider the possibility that most students have
student loans and rely on borrowed money as their principal source of finances.

5.4.2 Financial Planning Influence on Spending of College Students at USIU-Africa

From the results of the study, it is safe to say that there is a negligible link between financial
planning and spending. The linear regression analysis is proof of this with results that show
financial planning predicts 0.00% of spending. Again, in contrast, there are studies covered
in chapter two that offer different results. Some of these studies prove that there is a
relationship between the two variables with budgeting standing to protect students from
overspending.

5.4.3 Investing Effect on Spending Habits of College Students at USIU-Africa

The current study centers on proving the existing significant relationship between the two
variables. However, focus is paid to establishing the effect that spending habits have on
students making investments. With a proven link between the two, there are various
institutions of higher learning that try on capacity building for their students so that they
can make wise investment decisions.

52
5.5 Recommendations
The most profound finding is that financial literacy is an important aspect in improving the
spending tendencies of students. Students find themselves in a setting that needs them to
step up in terms of providing for their growing needs with no actual or reliable source of
steady income. Relying on student loans and borrowed money is what most students do.
Equipping students with financial literacy are a step towards improving their spending
habits by working on how they think of investments, financial planning, and taking out
loans.

5.5.1 Borrowing

In line with financial literacy, students need to equip themselves with adequate
knowledge so that they do not inefficiently rely on loans for survival. To begin with,
students can look to do part-time jobs while they study. In this way, they will be less
likely to engage in unnecessary borrowing which affects their financial wellbeing.

5.5.2 Financial Planning

Also, in line with financial literacy, students need insight into how to plan their finances.
Part of this insight should focus on making sure that they are aware of their basic needs and
what they need to spend money on. Even though students are used flashy and impromptu
spending, a short lesson or course in financial management will give them needed insight
on how to plan their finances.

5.5.3 Investments
In research it seems there is scanty data on the nature of the relationship between spending
habits and making investments. The current study focuses on explaining how university
students make investments and their rationale for doing so. However, there is little airtime
left for explaining the most important thing of the association between making investments
and spending habits. Future research can investigate filling this gap.

53
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 APPENDICES
APPENDIX I: INTRODUCTION LETTER
Dear Respondent,

I am a student at the United States International University- Africa, and I invite you
participate as a respondent in a study that seeks to examine bank risks and their effect on
the performance of commercial banks in Nairobi County in Kenya, since you are a risk
manager in your organization.

Your participation in this study is optional, and we are looking for people who are interested
in getting involved in this research study and who are employees based in a commercial
bank. If you decide to participate in the study, we will review the study with you, and please
note that your participation is purely voluntary. A consent form has been included that
elaborates the research study in detail. Please read it and do not hesitate to ask any questions
you may have.

Thank you for your time.

Sincerely,
NOREEN ASSENGA

62
APPENDIX II: RESPONDENT’S CONSENT FORM
I am Noreen Assenga, a master’s student at the United States International University-
Africa. To complete the course requirements, I am undertaking a study titled
‘ASSESSMENT OF THE ROLE OF FINANCIAL LITERACY ON THE SPENDING
HABITS OF COLLEGE STUDENTS IN PRIVATE UNIVERSITIES
PARTICULARLY USIU-AFRICA, KENYA’. I cordially welcome you to participate in
this study by completing the questionnaire provided. Participation in the study is fully
voluntary; participants may opt out if they are uncomfortable. Participants in the study will
include students from USIU-Africa. Questionnaires will be utilized to collect data.

Because the study is totally academic, there are no hazards. There will be no penalty for
non-participation. Those who withdraw from the competition will not be penalized. You
may choose to ignore questions that you do not feel comfortable answering.

The obtained data will be stored in the University database and repository, and authorized
personnel will have access to it.

My Participation Consent:

By signing below, you acknowledge that you have read and understood the information
provided in this form. You voluntarily agree to participate in this research study.

Signature of Participant ………………………………. Date……………………………...

Principal Researcher……………………………………Date……………………………...

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APPENDIX III: QUESTIONNAIRE
Section 1: Introduction and Demographics of Participants

This research aims to examine the impact of financial literacy on the spending patterns of
college students at private colleges in Kenya, with a particular emphasis on the United
States International University-Africa (USIU-Africa). We'd like to collect some
demographic information from you in this part. Your replies will be kept private and solely
used for research purposes.

Please check the appropriate boxes for each statement/Question below using (√) where true.

1. What gender do you identify with?

Male [] Female [ ] Would rather not say [ ]

2. What academic year are you in?

Freshman [] Sophomore [ ] Junior [ ] Senior [ ]

3. How old are you?

Under the age of 18 [] 18-21 [ ] 22-25 [ ] 26-30 [ ] Over 30 [ ]

4. What is your present employment status?

Employed full-time [] Employed part-time [ ] Self-employed [ ] Unemployed [ ]

Student only [ ]

5. If employed, what is your monthly average in Kenyan shillings (KES)?

Less than 10,000 [ ] 10,000-20,000 [ ] 20,000-30,000 [ ] 30,000-40,000 [ ] 30,000-

40,000 [ ] Over 40,000 [ ]

6. Do you now get financial assistance from relatives or sponsors?

Yes [ ] No [ ] sometimes [ ]

7. How would you assess your ability to effectively use and manage your finances?

very low [ ] very low [ ] moderate [ ] very high [ ] very high [ ]

8. Have you ever received formal financial literacy instruction or training?

Yes [ ] No [ ]

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Section 2: The Effects of Borrowing on Student's Spending Habits

Please check the appropriate boxes for each statement below using (√) where true.

Number Statement Strongly Agree Neutral Disagree Strongly

Agree disagree.
1. I use borrowing to
assist me reach my
short-term financial
objectives and goals.
2. I frequently take out
loans without a defined
repayment strategy.
3. I feel bad whenever I
must take out a loan to
pay my bills.
4. I try to limit my
borrowing as much as
feasible.
5. I frequently have
difficulty making my
loan installments.
6. I worry about how my
debt may affect my
future and feel stuck
by it.
7. I frequently borrow
funds from friends and
relatives instead of
formal lenders.
8. I consider borrowing
money to be an
essential component of

65
 managing my
finances.
9. Borrowing is a good
idea for college
students like me.
10. I can purchase items
that I otherwise
wouldn't be able to
afford by borrowing
money.

Section 3: The Influence of Financial Planning on the Spending Habits of Students

Please check the appropriate boxes for each statement below using (√) where true.

Number Statement Strongly Agree Neutral Disagree Strongly

Agree disagree.
1. I track my spending on
a regular basis to
ensure that I stay
within my budget.
2. I frequently make
spontaneous purchases
without thinking about
how they may affect
my budget.
3. I fully comprehend the
financial goals I have
and how I can
accomplish them.
4. I oversee my finances
and I am confident in
my abilities to handle
them.

66
5. I have a savings
strategy in place and
set away money on a
regular basis for
emergencies or future
costs.
6. My financial duties
frequently overwhelm
me, and I struggle to
handle my money
adequately.
7. I create a budget at the
start of each month and
try to keep to it as
much as possible.
8. I put paying off my
debts ahead of
spending on non-
essentials.
9. To help me manage
my finances more
successfully, I
frequently use
financial applications
or programs.
10. To make educated
financial decisions, I
seek counsel or
direction from
financial specialists or
reliable sources.

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Section 4: The Investment and Savings Habit of College Students

Please check the appropriate boxes for each statement below using (√) where true.

Numbe Statement Strongl Agre Neutra Disagre Strongly

r y Agree e l e disagree
.
1. I am well-versed in the
many forms of
investments available
to me.
2. I am apprehensive
about investing my
money into investments
because I'm terrified of
losing it.
3. Rather than investing in
stocks or mutual funds,
I choose to put my
money in a savings
account.
4. I feel that investment is
only for wealthy
people.
5. I have never
contemplated investing
as a means of achieving
my financial objectives.
6. I frequently make rash
investing decisions
without conducting an
adequate study or
speaking with a
financial professional.

68
 7. I feel investing is too
complex for me to
comprehend.
8. I've
bought cryptocurrencie
s because I feel it will
provide me with rapid
profits.
9. I want to learn more
about socially
responsible investment
and how it relates to
my beliefs.
10. I have a long-term
investment strategy in
place and routinely
check my portfolio to
ensure it aligns with my
objectives.

Section 5: The Spending Patterns of College Students

Please check the appropriate boxes for each statement below using (√) where true.

Number Statement Strongly Agree Neutral Disagree Strongly

Agree disagree.
1. I frequently engage in
impulse purchases
during my time in
college.
2. I often feel pressure to
spend money on social
activities and events in
college.

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 3. I feel financially
stressed due to my
spending habits in
college.
4. I frequently compare
prices and look for
deals before making a
purchase.
5. I believe that cooking
meals at home is more
cost-effective than
eating out or ordering
takeout.
6. I feel financially
responsible for
covering my own
college related
expenses.

Thank you for spending the time to complete this instrument. Your responses will be
invaluable in assisting us in better understanding the role of financial literacy in college
students' spending patterns at private colleges.

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APPENDIX IV: DEBRIEF FORM
Thank you for taking part in this research. This research aims to learn more about the role
of financial literacy on the spending habits of college students in private universities.

Your participation will assist to establish a foundation and forum for conversation, both
nationally and internationally, to obtain a better knowledge of managing finances and
developing breakthrough spending habits that result in beneficial results among college
students, particularly those at private universities. More precisely, the competitiveness
framework proposed in this study will provide instructions to universities, financial
institutions, employees, government, and society in developing knowledge about how to
effectively use and manage financial resources.

If you have any distressing emotions or concerns about the questions offered in this survey,
please seek support through counseling at the USIU-A counseling Centre.

If you have any questions about the research, please contact the researcher at 0706776733
or at the e-mail address noreenleina8@gmail.com.

Thank you once more for your involvement.

Regards,

NOREEN ASSENGA

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APPENDIX V: LETTER FROM GRADUATE SCHOOL

72
APPENDIX VI: INSTITUTIONAL REVIEW BOARD APPROVAL

73
APPENDIX VII: NACOSTI PERMIT

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