Basic Money Management Skills and Financial Decision Making: A Survey of Small Scale Trading Enterprises Owners in Kamwangi Market of Gatundu North Constituency in Kenya.

  • Dr Patrick Kibati. School of Business & Economics, Department of Commerce; Kabarak University, Kenya.
Keywords: Money management, financial decision making, small scale trading enterprises.


This paper examines the effect of basic money management skills and financial decision making. It is a survey of small scale trading enterprises owners in Kamwangi market of Gatundu north constituency in Kenya. The need for basic money management skills has become increasingly significant with the more accessible access to credit and the ready issue of credit cards. A descriptive research design was adopted. This was because the study was primarily focused on establishing Kenyans’ basic money management skills and describing the critical variables associated with them. A sample of one hundred and sixty small scale trading enterprises owners was drawn as guided by the Yamane formula. Forty of the questionnaires were not returned, and attempts to follow them up were unsuccessful. Therefore, the results are based on the one hundred and twenty returned questionnaires produced. The data was collected by the use of the closed-ended questionnaire. The quantitative data were analysed using descriptive statistical methods. It was then presented employing frequency distribution methods involving tables and bar charts. Most traders do not possess basic money management skills from the study’s findings. The county government should engage traders in basic money management skills through the relevant ministry.