Assessing the Impact of Financial Literacy on Household Budgeting and Savings Behaviours of Homemakers in South-West, Nigeria

The study assessed the impact of financial literacy on household budgeting and saving behaviours of homemakers in South-West, Nigeria. Three specific purposes, three research questions and three null hypotheses guided the study. A survey research design was adopted. It was carried out in South West, Nigeria (Lagos, Ogun, Oyo, Osun, Ondo, and Ekiti States). The population for this study consisted of all homemakers (adult males and females) living in the South West region of Nigeria. However, since the exact number of the homemakers in the study area is unknown, a sample size of 600 homemakers which consisted of 300 males and 300 females in South West, Nigeria were randomly selected and sampled using accidental sampling technique. Structured questionnaire was used for data collection and it was face validated by three experts from University of Nigeria, Nsukka (UNN). Cronbach alpha reliability method was used to ascertain the internal consistency of the instrument and a reliability coefficient of 0.88, 0.80, and 0.86 for the three research questions and the overall reliability coefficient of 0.85 was obtained which showed that the instrument is reliable and effective for data collection. Data collection was carried out by the researcher and six research assistants. Mean, standard deviation and t-test statistics were used to analyze the data collected. The findings revealed ten (10) impacts of financial literacy on household budgeting practices among homemakers in South West, Nigeria; thirteen (13) impacts of financial literacy on savings behaviours among homemakers in South West, Nigeria; and ten (10) strategies for enhancing household budgeting and saving behaviour among homemakers in South West, Nigeria. Based on the findings, it was concluded that improving the financial literacy level of homemakers would result in enhanced household budgeting and saving among homemakers in South West region of Nigeria. The study recommended among others that government should develop and implement effective financial literacy programmes focusing on budgeting, savings, and investment for homemakers in South-West Nigeria; and there should be frequently workshops and seminars on financial literacy education for homemakers in the region.