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Financial Literacy Components and Entrepreneurial Intentions among Social Studies Students in Ethiopia

Kimbowa Peter
Faculty of Education, Department of Professional Studies Lira University
Imoh Bernard EKOTT
PhD, Department of Sociological Foundations of Education, University of Uyo, Nigeria
Helen Ama Umana
Department of Psychological Foundations of Education, University of Uyo, Nigeria
DOI Crossref DOI 10.37547/tajiir/Volume08Issue07-09
tajiir 2026
VOL. 8 / NO. 07 JULY
FULL TEXT PP. 84-100
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VOLUME 8
ISSUE 07
YEAR 2026
PAGES 84-100
RESEARCH OVERVIEW

Abstract

This study examined the relationship between financial literacy components and entrepreneurial intentions among Social Studies students in Ethiopia. Specifically, the study investigated the relationship between budgeting literacy, saving literacy, digital finance literacy, and entrepreneurial intentions among Social Studies students in the Oromia Region of Ethiopia. The study adopted a correlational survey research design. The population of the study comprised 4,860 undergraduate Social Studies students from selected public universities in the Oromia Region during the 2025/2026 academic session. A sample size of 486 students was selected using proportionate stratified random sampling and simple random sampling techniques. Data were collected using a structured questionnaire titled Financial Literacy Components and Entrepreneurial Intentions Questionnaire (FLCEIQ). The instrument was validated by experts in Entrepreneurship Education, Measurement and Evaluation, and Financial Literacy Studies. Cronbach’s Alpha reliability coefficients of 0.82, 0.85, 0.88, and 0.86 were obtained for budgeting literacy, saving literacy, digital finance literacy, and entrepreneurial intentions respectively, with an overall reliability coefficient of 0.85. Data collected were analyzed using mean, standard deviation, and Pearson Product Moment Correlation Coefficient at 0.05 level of significance. The findings revealed that budgeting literacy had a strong positive and significant relationship with entrepreneurial intentions (r = 0.672, p < 0.05). Saving literacy also showed a strong positive and significant relationship with entrepreneurial intentions (r = 0.714, p < 0.05). Furthermore, digital finance literacy demonstrated a strong positive and significant relationship with entrepreneurial intentions (r = 0.756, p < 0.05). The study concluded that financial literacy components significantly influence entrepreneurial intentions among Social Studies students in Ethiopia. The study recommended the integration of practical financial literacy training into university entrepreneurship programmes to improve students’ entrepreneurial preparedness and self-employment readiness.

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