Journal
Metropolitan Journal of Academic and Applied Research
MJAAR
Financial Literacy And Poverty Management In Rural Areas: A Case Of Kyamuhunga Peoples Sacco, Bushenyi District
Kato Justus, Irumba Alex
| Journal | Metropolitan Journal of Academic and Applied Research (MJAAR) |
| Volume / Issue | Vol. 5, No. 6 |
| Published | 30 June 2026 |
| ISSN | 3006-6417 |
Abstract
This study examined the relationship between financial literacy and poverty management among rural communities served by Kyamuhunga Peoples SACCO, Bushenyi District, Uganda. The study was guided by three specific objectives: assessing the effect of budgeting knowledge on poverty management; examining the effect of savings and investment knowledge on poverty management; and evaluating the effect of credit and debt management knowledge on poverty management. A cross-sectional survey design was applied to a sample of 130 SACCO members selected through systematic random sampling. Data were collected using structured questionnaires and analysed using descriptive, correlation, and multiple linear regression techniques in SPSS version 27. Findings showed that budgeting knowledge (β = 0.358, p < 0.001), savings and investment knowledge (β = 0.319, p < 0.001), and credit and debt management knowledge (β = 0.241, p = 0.002) were all significant positive predictors of poverty management, with the regression model explaining 66.2% of variance in poverty management outcomes (R² = 0.662). The study concluded that financial literacy is a critical enabler of poverty management in rural Uganda and recommended integrating structured financial literacy programmes into SACCO operations, school curricula, and community outreach initiatives in Bushenyi District.
Keywords
Financial Literacy
Poverty Management
Budgeting
Savings
Investment
Credit Management
Cite This Article
Kato Justus & Irumba Alex (2026). Financial Literacy And Poverty Management In Rural Areas: A Case Of Kyamuhunga Peoples Sacco, Bushenyi District. Metropolitan Journal of Academic and Applied Research, 5(6). https://journals.miu.ac.ug/pages/article.php?article_id=647
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