Determinant of financial wellbeing among employees in Ikeja local government in Lagos State Nigeria

With the recent advancement in the financial economy, it has become more necessary for employees to be more knowledgeable and adept in handling their finances. Financial markets terrain has changed so much resulting in the availability of a wider choice of financial products and services, thus making financial decisions more complex and demanding. The ease of accessibility to inventive loans and credit services, financial market restructuring and technological advancements in the mode of offering and distributing financial services have indisputably left several individuals with a puzzling assortment of savings opportunities and decisions that need to be made. Therefore, this study was conceptualized to examine the factors that determine the financial well-being of employees in Ikeja local government area in Lagos state Nigeria. The researcher employed a simple random sampling in selecting the number of employees and 392 questionnaires were distributed to achieve a good responses rate. As such, eighty (78) questionnaires were distributed to each of four department while the fifth department was given 80 questionnaires in other to balance with the accurate numbers of 392 of the five departments selected. The collected data were analyzed using descriptive statistic which includes Pearson’s correlation test, independent sample t-test, Analysis of Variance (ANOVA) and multiple regression on Statistical Package for Social Science (SPSS). Data normality was also performed to compare the sample distribution shape and the normal curve shape. The relationship between financial literacy, financial management, and financial strain towards financial well-being was determined using Pearson’s coefficient correlation analysis. Results showed that there was a significant relationship between financial well-being, financial management and financial strain except for financial literacy which was not statistically significant. Analysis of Variance ANOVA and sample t-test were conducted to determine the difference in financial well-being based on demographic characteristic of the respondents. The results also revealed that there were significant differences in demographics variables of the employee’s financial well-being as all the mean difference is significant were at the < 0.05 level. Multiple regression analysis was used in identifying the predicting factors influencing the financial well-being of the respondents. Multiple regression results showed that the overall model is significant. Each of the variables (financial literacy, financial management and financial strain) is significant predictors of financial well-being among the employees in Ikeja Lagos state Nigeria. In conclusion, based on the findings of the study, only few employees in Ikeja local government area of Nigeria had high level of financial well-being while the rest had moderate and low level. This calls for further study on how financial literacy and financial management could be strengthened while reducing financial strain faced by the employees since they are part of predicting variables of financial well-being among the respondents.

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