Financial Planning and Household Investments Among Primary School Teachers in Lira Central Division

Abstract

The UNHS (2017) showed that Uganda households spends (96%) on consumption of goods and services. A massive (92%) of household that receive their post-retirement benefits spends it all in consumption and uniformed investments within a year and remain broke with no cash and assets to fall on yet (80%) of the beneficiaries have only NSSF as their post-retirement source of financial income. This ,after spending all of their working life on a paid employment and receiving a monthly income for that service .The study sought to investigate the effects of financial planning on household investments among primary school teachers in Lira Central Division . The study was guided by three objectives, namely ;1) To determine the effects of personal cash flow on household investment; 2) to examine the effects of personal dept management on household investments; and 3) to determine the effects of personal savings on household investments. The study adapted a cross-sectional survey design with purely quantitative research approach. The study population constituted 165 primary school teachers, who are paid from government ‘s consolidated fund, and sample of 118 primary school teachers. The study used questionnaire collect primary data while mean, standard deviation, correlations and regression were helpful in analyzing quantitative data. The findings indicate statistically insignificant effects of cash flow, dept management and personal saving on household investments in Lira Municipal Council. The study therefore recommends that primary school teachers should be exposed to financial education so that they can appreciate the significance of developing and using a financial plan to help them to achieve desired household investments which can continue to generate more income, supplementing the salary which is main source of income. In consideration of the fact that most primary school teachers have high operational expenses some of which are facilitated by credit, it is important that they prioritize short term fiscal discipline in order to guarantee a future of financial freedom fed by streams of investment income from household investment