Achieving Household Financial Wellbeing in Ebonyi State: The Contribution of Household Accounting

Abstract The study examined effect of household accounting on the financial wellbeing of households in Ebonyi state. Household budgeting, household emergency fund creation, household cashflow management and household asset management served as the proxy for household accounting. Descriptive survey design was deployed on a population of households in Ebonyi state. A sample size of 246 households was selected using stratified sampling. Structured questionnaire was used in obtaining primary data for the study. The four hypotheses raised were tested using ordinal regression with the aid of EVIEWS 10. It was found that: household budgeting has a positive and significant effecton the financial wellbeing of households in Ebonyi state (β = 0.546234, p = 0.0056); household emergency fund creation has a positive and significant effect on financial wellbeing of households in Ebonyi state (β = 2.126290, p = 0.0008); household cash flow management has a positive and significant effect on financial wellbeing of households in Ebonyi state (β = 3.035102, p = 0.0000); household asset management has a positive and significant effect on financial wellbeing of households in Ebonyi state (β = 1.290833, p = 0.0145). In conclusion, households that actively engage in structured financial planning and resource allocation experience greater financial stability and security. The study recommends that household heads should consistently adopt and adhere to a structured budgeting system that prioritizes essential expenses, savings, and investments in order to enable them to effectively manage their finances, reduce unnecessary spending, and improve their overall financial well-being. JEL Code: D14