Abstract

This study examines the importance of financial literacy among students in Nigeria. It investigated the relationship between student financial literacy and student financial behaviour in Nigeria. It is aimed at proffering solution to student lack of basic money management skills. Five research questions and four hypotheses guided this study. The method of data collection was questionnaire in a fixed response type with a Likert-type response format. The bench mark was 2.5. Mean and frequency counts were used in analyzing data. A major finding of this work reveals that there is a strong agreement among respondents that students with higher financial literacy exhibits better financial behaviour in Nigeria. This has a mean score of 3.5 which is quite high as compared to 2.5 bench mark. It shows a high positive relationship between the two variables. Other findings of this research work shows that students have moderate financial literacy. It also reveals that financial literacy influences students budgeting and savings behaviour and it reduces students tendency to incur debt and fall for financial fraud and that investment knowledge is low among the students. Further finding reveals that Low family income, Inadequate Allowance, financial dependence, non inclusion of financial literacy on school curriculum, pressure of student to keep trends, buy expensive gadgets and show off on Instagram/Tiktok, loan Apps, Ponzi schemes and online scams and poor parental guidance are constraint factors militating against students financial literacy in Nigeria. Among the policy recommendations of this study are that Government and National University Commission should introduce financial literacy course for all the students in the higher institutions in Nigeria. They should organize campus financial literacy campaigns and workshops so that financial literacy will improve in Nigeria