Abstract

This study investigates the effect of financial literacy on the economic wellbeing of low-income undergraduates at Alex Ekwueme Federal University, Ndufu-Alike Ikwo (AE-FUNAI), Ebonyi State, Nigeria, emphasizing how demographic realities and financial competencies shape students’ resilience and financial stability. At a 0.09% level of confidence, a sample size of 200 respondents was determined, and data were collected using a multi-stage sampling technique. Stratified sampling segmented the population by level of study, residence, income, and source of financial support, while random sampling within each stratum ensured representativeness and minimized bias. A structured questionnaire captured demographic characteristics, levels of financial literacy, and the influence of literacy on spending, saving, and overall economic well-being. Descriptive statistics addressed the first two objectives, examining literacy levels and spending/saving behavior, while multinomial logistic regression analysis determined the impact of financial literacy on economic well-being. Findings reveal that respondents are predominantly young, female, and reliant on parental support, with limited access to scholarships or external funding. While most students demonstrate strong awareness of basic financial concepts such as distinguishing needs from wants and confidence in decision-making, their practical skills in budgeting, inflation, saving, and investment remain underdeveloped. Regression results confirm that financial literacy significantly influences economic resilience, with budgeting skills exerting a strong positive effect, whereas knowledge of inflation, interest rates, and investment showed negative associations, suggesting that awareness without application undermines stability. The study concludes by recommending structured financial literacy courses, expanded scholarship opportunities, and peer-led initiatives to strengthen financial management capacity and promote long-term economic resilience among Nigerian undergraduates.