Abstract

This research investigated the impact of Digital Financial Services (DFS) on the monetary habits of students in South-Eastern Nigeria. Specifically, it analyzed how extensively DFS is embraced and its implications on budgeting, saving, expenditure, and borrowing behaviors. A cross-sectional survey design was employed to collect data from undergraduate students enrolled in six federal and state universities located in the South-Eastern region of Nigeria. Structured questionnaires were administered, yielding 386 valid responses for analysis. Binary Logit Regression in conjunction with descriptive statistics was employed. The result indicates significant DFS adoption among students, fueled by ease of access, convenience, and diminished reliance on conventional banking methods. Further findings showed that while DFS improved budgeting and saving habits for some students, it also led to hasty spending and increased dependence on digital loans, often without sufficient regard for repayment responsibilities. The study concludes that DFS has a dual impact: fostering financial inclusion while concurrently exposing students to financial behavioral risks related to inadequate financial knowledge. It suggests that universities, regulatory bodies, and fintech companies should enhance financial literacy, devise student-friendly financial offerings, and improve supervision of digital lending platforms to ensure responsible usage of DFS among the student population