IMPACT OF ECONOMIC STABILITY ON FINANCIAL LITERACY AMONG STUDENTS OF PRINCE ABUBAKAR AUDU UNIVERSITY.

This study examined the impact of economic stability on financial literacy among students of Prince Abubakar Audu University, Anyigba. Economic stability plays a crucial role in shaping the financial behaviour and decision-making capacity of young people, particularly undergraduates who often face diverse financial challenges. The study was guided by two main objectives: first, to identify the specific economic stability factors that influence financial literacy among students, and second, to evaluate the impact of economic stability on the financial decision-making and behaviour of students. The research was anchored on the Theory of Planned Behavior (TPB) by Icek Ajzen and the Health Belief Model (HBM) by Irwin Rosenstock. These theories provided insights into how students’ attitudes, perceived control, and belief systems influence their financial behaviour, especially in relation to saving, spending, and coping with economic fluctuations. The population of the study consisted of 25,701 undergraduate students across eight faculties of the university, and a sample size of 220 students was determined using Krejcie and Morgan’s (1970) table. A random sampling technique was employed to ensure representation from all faculties. Data were collected through structured questionnaires and analyzed using both descriptive and inferential statistical tools. The findings revealed that economic stability significantly influenced students’ financial literacy. Key factors such as inflation, income instability, and general economic hardship shaped students’ financial behaviour, including saving, spending, and borrowing practices. The study further established that students with higher exposure to financial education programs demonstrated better financial literacy and resilience during periods of economic instability. In conclusion, the study affirmed that economic stability is a strong determinant of students’ financial literacy and decision-making ability. It was recommended that Prince Abubakar Audu University integrate financial literacy education into the core curriculum, ensuring all students acquire essential financial management skills. Additionally, the study recommended increasing the frequency and practical relevance of financial education programs, with workshops and seminars tailored to address real-world economic challenges faced by students.