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Exploratory Factor Analysis (EFA) and Reliability Analysis of Financial Literacy Instrument Among Trainee Teachers

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This study aims to evaluate the reliability and validity of tools designed to assess financial Literacy (FL) of trainee teachers. A structured questionnaire was utilized to collect data from a randomly selected sample of 100 trainee teachers from the Teacher Education Institute (IPG). EFA techniques were used by deploying IBM-SPSS version 22.0. The EFA results demonstrate four components of FL with the eigenvalue exceeding 1.0 for each construct: financial knowledge 1, financial knowledge 2, financial behaviour and financial attitude. However, through the EFA procedure, the inquiry established that only 38 items, each with weighting factors exceeding 0.50, were retained and considered suitable for assessing the FL construct. The reliability of construct knowledge 1 was 0.916, construct knowledge 2 was 0.947, construct behaviour was 0.958, and construct attitude was 0.962. This study affirms the validity and reliability of the dimensions guiding FL measurement. This research contributes to the body of knowledge on FL among pre-service teachers who would serve as mentors to students after graduating. It also intends to keep up with its ongoing research projects and pursue additional financial studies in the future.

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