Published Article

ABSTRACT

The study sought to determine the impact of budgeting skills on a low income families’ financial health in Uyo Metropolis. In carrying ou this study, descriptive survey research design was adopted. The study was carried out in Uyo Metropolitan, Akwa Ibom State, Nigeria, and the population comprised low-income households residing in the area, particularly those whose income falls below the national poverty threshold and who experience difficulty in meeting basic needs. A sample size of 300 households was selected using a multi-stage sampling technique. Uyo was first divided into its urban wards, after which clusters of low-income households were identified within each ward. A proportional allocation method was used to distribute the sample across the wards, and simple random sampling was employed to select respondents within each cluster, ensuring equal chances of participation. The instrument used for data collection was a structured questionnaire designed by the researcher, consisting of both closed- and open-ended questions. The questionnaire was divided into four sections covering demographic information, budgeting skills, financial health indicators, and challenges associated with budgeting. Face and content validity of the instrument were established by experts in finance, economics, and social research, who examined the instrument for clarity, relevance, and adequacy. The reliability of the instrument was determined using Cronbach’s Alpha coefficient based on data obtained from a pilot study involving 20 respondents who were not part of the main sample. A reliability coefficient of 0.70 and above was considered acceptable, confirming the internal consistency of the instrument. Data collection was carried out through direct administration of the questionnaire by trained research assistants, with respondents approached in their homes or community centers. The data collected were analyzed using appropriate statistical techniques, including descriptive statistics, to answer the research questions. In conclusion, budgeting skills are essential but underdeveloped among low-income families in Uyo Metropolitan. While many households have adopted basic budgeting practices, their effectiveness is limited by gaps in financial education, income instability, and limited access to financial tools.  One of the recommendations made was that government agencies, NGOs, and community-based organizations should organize regular financial education workshops and training sessions to equip low-income households with practical budgeting skills, savings strategies, and debt management techniques.