Assessment of Financial Literacy and Budgeting Behaviors among Undergraduate Students in Southwestern Nigeria: A Case for Integrating Personal Finance into University Curricula

This study assessed financial literacy and budgeting behaviours among undergraduate students in Southwestern Nigeria, with particular emphasis on the case for integrating personal finance into university curricula. The study was based on three objectives that focused on (1) financial literacy levels among undergraduate students, (2) budgeting behaviors undergraduate students engage in, and (3) implications of the findings for integrating personal finance education into university curricula. The quantitative method of research and the descriptive survey design were used. The study population consisted of all undergraduate students of the selected Universities in Southwestern Nigeria and a sample size was determined by the use of Taro Yamane sampling formula. The data was gathered only by using structured questionnaires through 5 point Likert scale. There were 434 questionnaires issued, of which 400 were included in the analysis as valid questionnaires, after excluding the incomplete questionnaires and the withdrawals. Frequencies, percentages, mean scores and Pearson’s Product Moment Correlation were used in the analysis of data. The findings showed that the respondents’ financial literacy in general was shown to be at a generally positive level, with a grand mean of 3.82. Budgeting behaviour was also mostly favorable with a grand mean of 3.62, while sticking to the preset budget was relatively weak. The results also indicated high degree of agreement for incorporating personal finance education into the university curriculum with a grand mean of 4.15. The Pearson correlation revealed a coefficient of 0.684, which shows that there was a moderately strong positive correlation between financial literacy and budgeting behaviour. Consequently, the study findings suggest that there is a significant relationship between financial literacy and budgeting among students, as financial knowledge does not guarantee financial behavior. The study suggests a need to increase the focus on practical personal finance education in universities, especially in aspects like budgeting, saving, managing expenditure, and borrowing responsibly.

Keywords: Financial Literacy, Budgeting Behaviour, Undergraduate Students, Personal Finance Education, University Curriculum.