Personal Financial Management and Perceived Efficacy of Financial Products At Y-Save Multi Purpose Cooperative, Uganda./

Abstract

This study explores the relationship between personal financial management (PFM) practices and the perceived efficacy of financial products offered by Y Save Uganda, a member-driven savings and investment cooperative. Financial products, ranging from savings accounts and loans to digital financial services, play a pivotal role in enhancing economic stability and financial security. However, their efficacy in meeting consumers’ needs often depends on users’ financial literacy and management behaviours. This research utilizes a cross-sectional survey design with a sample of 300 members to assess the impact of PFM practices, including budgeting, saving, and debt management, on product satisfaction and utility. Results indicate a statistically significant, albeit modest, positive relationship between PFM practices and product efficacy perceptions ((β = .154, p = .006); explaining 2.4% of the variance. The findings underscore the need for enhanced financial literacy programs and tailored financial advisory services to optimize financial product use. Recommendations include expanding digital financial solutions and innovating product offerings to support member financial resilience and inclusion.