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INFLUENCE OF HOMEMAKERS’ SPENDING PRACTICES AND 
CONSUMER CREDIT USE ON FAMILY WELFARE AT 
SAKUMONO ESTATES, TEMA 
 
 
BY 
ELIZABETH MILLICENT BA-AMA  
(10031714) 
 
 
THIS THESIS IS SUBMITTED TO THE UNIVERSITY OF GHANA, 
LEGON, IN PARTIAL FULFILMENT OF THE REQUIREMENTS 
FOR THE AWARD OF DOCTOR OF PHILOSOPHY DEGREE IN 
HOME SCIENCE  
 
 
 
JULY, 2019 
 
 
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DECLARATION  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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ABSTRACT 
This study was conducted to assess how the spending practices and consumer credit use 
among homemakers at Sakumono Estates in the Tema Municipality influenced family 
welfare. The specific objectives were to: examine the income and expenditure patterns of 
homemakers, investigate the management principles applied by homemakers in the use of 
money, investigate the perception and consumer credit use by homemakers and identify 
factors that influenced homemakers’ spending practices and credit use. Five null 
hypotheses were stated. Ho1: There is no relationship between homemakers’ 
demographic characteristics (age, educational level, marital status, occupation, income 
status) and spending practices. Ho2: There is no relationship between homemakers’ 
demographic characteristics (age, educational level, marital status, occupation, income 
status) and consumer credit use. Ho3: There is no relationship between homemakers’ 
spending practices and consumer credit use. Ho4: There is no relationship between 
homemakers’ spending practices and family welfare. Ho5: There is no relationship 
between homemakers’ consumer credit usage and family welfare. A proportionate sample 
of two hundred and fifty-two (252) homemakers was interviewed using a structured 
interview schedule. The data were analysed using the Statistical Package for Social 
Sciences (SPSS) version 21 to generate frequency and percentage distributions. Likert 
scale scores were used to aggregate spending practices, consumer credit use, perception 
of consumer credit, family welfare and financial stress. Pearson’s Correlation Coefficient 
test and simple linear regression analysis were used to test the null hypotheses at 5% 
level of significance (p = 0.05). The findings revealed that the mean age of the 
homemakers was 45.5 years with an average household size of five. The majority (70%) 
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had attained post-secondary and tertiary levels. Homemakers earned a mean monthly 
income of GH¢1,100 from salaries and wages (93.7%). The mean monthly housekeeping 
money was GH¢600 contributed by both homemakers (98%) and husbands (70%). The 
top six expenditure categories with high means included education (GH¢539.26), food 
and non-alcoholic beverages (GH¢252.98), accommodation (GH¢152.11), transportation 
(GH¢130.60) children’s clothing and footwear (GH¢96.67) and utilities (GH¢82.45). The 
homemakers were the financial decision-makers (77%). Financial management principles 
applied included planning or budgeting 226 (89.7%) organizing expenditure (73%), 
implementing financial plans (75%) and partial evaluation of financial plans (57%). 
Perception of consumer credit was low (54.4%) but 72% used it for varied reasons. 
Spending practices were influenced mainly by personal (99.2%), economic (91.2%), 
social (71.4%) and business factors (63.4%). More than half (55.8%) of the homemakers 
assessed their spending vis-à-vis family goal attainment as very good and more than two 
thirds (68.7%) said they had enhanced family welfare. Simple linear regression analysis 
revealed that age (p=0.01), educational level (p=0.01), occupation (p=0.01) and income 
status (p=0.01) predicted spending practices whereas educational level (p=0.05) and 
occupation (p=0.01) predicted consumer credit use. Spending practices (p=0.001), on the 
other hand, predicted family welfare implying that homemakers who applied good 
spending practices had enhanced family welfare. It is concluded that to some extent, 
homemakers spending practices and consumer credit use did influence their family 
welfare both positively and negatively. It is recommended that stakeholders in the field 
being examined including the Ministry of Education, Extension workers, Ghana Home 
Economics Association (GHEA), Microfinance and Consumer Credit institutions, should 
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design practical educational programs for both formal and informal deliveries to provide 
knowledge and skills required for financial management matters, particularly good 
spending practices and consumer credit use, to enable both present and future 
homemakers make informed and effective decisions regarding the use and management 
of money and credit to enhance family welfare. Also, the stress experienced by 
homemakers as they perform the important responsibility as financial managers of the 
household is likely to reduce. Acquisition of such skills by as many homemakers as 
possible would reduce the stress experienced by homemakers as they perform these 
important responsibilities which are central to family welfare 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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DEDICATION 
This thesis is dedicated to the Almighty God for His protection and favour and to my son, 
Arnold Bakang Korbieh, for his encouragement and support. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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ACKNOWLEDGEMENT 
I am deeply grateful to God Almighty for giving me the strength and provision 
throughout this work. Special appreciation goes to my supervisors: Prof. Dr (Mrs) 
Laetitia Hevi-Yiboe, Dr Paschal Atengdem and Dr Justice Owusu Bempah for their 
encouragement, professional guidance and directions which helped in shaping the 
outcome of this thesis. 
 
I am most grateful to Mr Frank Asempah and David Kumador (Research Assistants) for 
their assistance in completing this work. God richly bless you. My appreciation also goes 
to all the lecturers in the Department of Family and Consumer Sciences, University of 
Ghana, Legon, for their constructive criticisms and useful suggestions. I would want to 
mention Prof. Docea Fianu and Dr Mrs Afua Vandyck for their constant pressure and 
encouragement to complete this thesis.  
 
My heartfelt gratitude goes to my only son, Arnold Bakang Korbieh for his support and 
encouragement. Special thanks go to my friends, Mrs Comfort Buami, Mrs Evelyn 
Anyire, Rev. Father Alosious Noulabong, Madam Janet Appiah, Auntie Victoria 
Lamptey, Mr Akogo Ayirepaga and others for their special support in various ways.  
 
Finally, I thank my respondents who willingly gave me their time, access to their homes 
and co-operation during the data collection. To all who contributed in diverse ways, I say 
Ayekoo! 
 
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TABLE OF CONTENTS 
DECLARATION ................................................................................................................. i 
ABSTRACT ........................................................................................................................ ii 
DEDICATION .....................................................................................................................v 
ACKNOWLEDGEMENT ................................................................................................. vi 
LIST OF TABLES ........................................................................................................... xiv 
LIST OF FIGURES ...........................................................................................................xv 
CHAPTER ONE ..................................................................................................................1 
INTRODUCTION ...............................................................................................................1 
1.1 Background Information ............................................................................................1 
1.2 Statement of the Problem ...........................................................................................4 
1.3 Aim of the Study ........................................................................................................5 
1.4 Specific Objectives ....................................................................................................5 
1.5 Hypotheses .................................................................................................................5 
1.6 Significance of the Study ...........................................................................................6 
1.7 Operational Definition of Terms ................................................................................7 
CHAPTER TWO .................................................................................................................9 
LITERATURE REVIEW ....................................................................................................9 
2.1 Introduction ................................................................................................................9 
2.2 The Family Concept ...................................................................................................9 
2.2.1 Definition of Family: ..........................................................................................9 
2.2.2 Types of Family ................................................................................................11 
2.3 Households ...............................................................................................................13 
2.3.1 Definition of households ...................................................................................13 
2.3.2 Structure and Composition of Households .......................................................14 
2.3.3 Household Types ..............................................................................................15 
2.4 Functions of the family ............................................................................................17 
2.5 Women’s Roles and Responsibilities in Family life ................................................22 
2.5.1 Role as a Wife ...................................................................................................22 
2.5.2 Role as a Mother ...............................................................................................23 
2.5.3 Role as Housekeeper .........................................................................................24 
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2.5.4 Role as Kin ........................................................................................................24 
2.5.5 Role as Worker .................................................................................................25 
2.5.6 Community Role ...............................................................................................26 
2.5.7 Status of Employed Women .............................................................................27 
2.6 Family Life...............................................................................................................28 
2.6.1 Explanation of family life and lifestyle ............................................................28 
2.6.2 Quality of Life...................................................................................................29 
2.6.3 Family Life Management ..................................................................................30 
2.7 Family Resources .....................................................................................................30 
2.7.1 Resources Explained .........................................................................................30 
2.7.2 Classification of Resources ...............................................................................31 
2.7.3 Family Resource Management .........................................................................34 
2.7.4 The Management Process .................................................................................35 
2.8 Money as a Resource ...............................................................................................36 
2.8.1 Money Defined .................................................................................................36 
2.8.2 Importance of Money as a Resource .................................................................38 
2.8.3 Money Attitudes................................................................................................40 
2.8.4 Needs Theory and Money Attitudes .................................................................43 
2.8.5 Family Income ..................................................................................................47 
2.8.6 Financial management ......................................................................................49 
2.8.7 Financial Planning ............................................................................................53 
2.8.8 Family budget ...................................................................................................54 
2.8.9 Importance of Financial Planning or Budgeting ...............................................55 
2.9 Consumer Spending .................................................................................................56 
2.9.1 Explanation of Consumer Spending .................................................................56 
2.9.2 Spending Practices ............................................................................................56 
2.9.3 Financial Education ..........................................................................................59 
2.9.4 Deciding what to buy ........................................................................................61 
2.9.5 Where to shop ...................................................................................................61 
2.9.5 When to buy ......................................................................................................62 
2.10 Factors that Influence Spending Decisions ............................................................62 
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2.10.1 Economic factors ............................................................................................63 
2.10.2 Personal factors ...............................................................................................63 
2.10.3 Social factors ................................................................................................65 
2.10.4 Business factors ..............................................................................................66 
2.11 Family Spending Methods .....................................................................................67 
2.12 Family Expenditure ................................................................................................69 
2.12.1 Food Expenditure .........................................................................................70 
2.12.2 Housing Expenditure ...................................................................................71 
2.12.3 Health Care Expenditure ..............................................................................72 
2.12.4 Remittances ..................................................................................................73 
2.12.5 Educational Expenditure ..............................................................................74 
2.12.6 Household Utilities Expenditure ..................................................................75 
2.12.7 Transportation Expenditure .........................................................................76 
2.12.8 Recreation ....................................................................................................76 
2.12.10 Communication .............................................................................................77 
2.13 Consumer Credit ....................................................................................................78 
2.13.1 History of Credit ..........................................................................................78 
2.13.2 Consumer Credit Explained ............................................................................79 
2.13.3 Types of Consumer Credit ...........................................................................79 
2.13.4 Factors that Influence Consumer Credit Use ...............................................83 
2.13.5  Functions of consumer credit .......................................................................85 
2.13.6 Consumer Credit Use ......................................................................................85 
2.13.7 Consumer Credit Challenges ..........................................................................87 
2.14 Summary ................................................................................................................89 
2.15 Conceptual Framework ..........................................................................................91 
2.15.1 Investigating Spending Practices, Consumer Credit Use and Family 
Welfare Using the Systems Theory ...........................................................................91 
2.15.2 The Nature of Systems Theory ....................................................................92 
CHAPTER THREE ...........................................................................................................96 
METHODOLOGY ............................................................................................................96 
3.1 Introduction ..............................................................................................................96 
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3.2 Study Design ............................................................................................................96 
3.3 Study Area ...............................................................................................................97 
3.4 Target Population .....................................................................................................98 
3.5 Sample Size and Sampling Procedure .....................................................................98 
3.5.1 Sample Size .......................................................................................................98 
3.5.2 Sampling Technique/Procedure ........................................................................99 
3.6 Instrument for Data Collection ..............................................................................101 
3.7 Pre-Test ..................................................................................................................103 
3.8 Data Collection Procedure .....................................................................................104 
3.9 Data Analyses and Presentation .............................................................................105 
3.10 Limitations of the study .......................................................................................110 
CHAPTER FOUR ............................................................................................................111 
RESULTS AND DISCUSSIONS ....................................................................................111 
4.0 Introduction ............................................................................................................111 
4.1 SECTION I ............................................................................................................111 
4.1.1 Socio-Demographic Characteristics of Homemakers .........................................111 
4.1.1.1 Age Distribution of Homemakers ....................................................................112 
4.1.1.2. Region of Origin of Homemakers...................................................................113 
4.1.1.4 Religious Affiliation of Homemakers ..........................................................115 
4.1.1.5. Marital Status of Homemakers .......................................................................116 
4.1.1.6 Type of Marriage .............................................................................................117 
4.1.1.7 Educational Level Attained by Homemakers ..................................................117 
4.1.1.8 Primary Occupation of Homemakers...........................................................119 
4.1.1.9 Secondary Occupation of Formal Sector Homemakers ...............................120 
4.1.1.10 Household Composition.............................................................................121 
4.2 SECTION II ...........................................................................................................122 
4.2.1 Income Sources of Homemakers ....................................................................122 
4.2.1.1 Monthly Income Earned by Homemakers ...................................................122 
4.2.2 Main Sources of Homemakers’ Income .........................................................123 
4.2.3 Main Contributors to Monthly Housekeeping Money and Amounts 
Contributed ..............................................................................................................124 
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4.2.4 Money Available for Monthly Household Use ...............................................127 
4.2.5 Handling of Housekeeping Money .................................................................129 
4.3 SECTION III ..........................................................................................................130 
4.3.1 Expenditure Patterns of Homemakers ............................................................130 
4.3.1.1 Expenditure Patterns and Mean Monthly Household Expenditure............131 
4.3.1.2 Ranking of Top 6 Expenditure Categories ...................................................136 
4.4 SECTION IV .........................................................................................................137 
4.4.1 Application of Financial Management Principles in Spending ......................137 
4.4.1.1 Planning .......................................................................................................137 
4.4.1.1.1 Planning or Drawing Budgets for Household Expenses ...........................137 
4.4.1.1.2 Kinds of Plans or Budgets Drawn .............................................................139 
4.4.1.1.3 Time Period for Budgets ...........................................................................139 
4.4.1.2 Organisation of Expenditure Plans ..............................................................141 
4.4.1.2.1 Preparation of Shopping List ....................................................................141 
4.4.1.2.2 Price Comparison during Purchases .........................................................142 
4.4.1.2.3 Factors Considered when Purchasing Food Items ....................................142 
4.4.1.3 Implementation of Financial Plans ..............................................................145 
4.4.1.3.1 Person Responsible and Period for Household Purchases ........................145 
4.4.1.3.2 Quantities Purchased .................................................................................147 
4.4.1.4 Evaluation of Financial Plans ......................................................................148 
4.5 SECTION V ...........................................................................................................149 
4.5.1 Factors that Influenced Homemakers’ Spending Practices ............................149 
4.5.1.1 Personal Factors ...........................................................................................150 
4.5.1.2 Economic Factors.........................................................................................151 
4.5.1.3 Social Factors ...............................................................................................152 
4.5.1.4 Business (Media) Factors .............................................................................153 
4.5.2 Categorisation of Homemakers into Levels of Spending Practices ................153 
4.5.3 Categorisation of Homemakers into Levels of Financial Stress Experienced 155 
4.6 SECTION VI .........................................................................................................156 
4.6.1 Perception of Consumer Credit and Consumer Credit Use. ...........................156 
4.6.1.1 Categorisation of Homemakers into Levels of Consumer Credit Perception156 
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4.6.1.2 Items Purchased on Credit by Homemakers ................................................158 
4.6.1.3 Sources of Consumer Loans Obtained by Homemakers .............................160 
4.6.1.4 Purpose for Consumer Loans Obtained by Homemakers ............................161 
4.6.2 Categorisation of Homemakers into Levels of Consumer Credit Use. ...........162 
4.7 SECTION VII ........................................................................................................163 
4.7.1 Family Welfare ...............................................................................................163 
4.7.1.1 Family Eating ...............................................................................................164 
4.7.1.1.1 Regular Daily Meals Provided by Homemakers ......................................164 
4.7.1.1.2 Inclusion of Food Items from Food Groups in Daily Meals .....................165 
4.7.1.1.3 Family Clothing Purchased by Homemakers ...........................................167 
4.7.1.1.4 Health Facilities Patronized by Families of Homemakers ........................167 
4.7.1.1.5 Educational Institutions Patronized by Wards of Homemakers. ..............168 
4.7.1.1.6 Means of Transportation for Family Members .........................................169 
4.7.1.1.7 Entertainment or Recreation for Homemakers and Families. ...................169 
4.7.1.1.8 Regularity of Savings by Homemakers ....................................................170 
4.7.1.1.9 Economic Security of Homemakers .........................................................171 
4.7.1.1.10 Accommodation for Homemakers and Families ....................................172 
4.7.1.1.11 Utilities Available to Homemakers and Families ...................................173 
4.7.1.1.12 Ownership of Property and Household Equipment by Homemakers and 
Families ……………………………………………………………………………173 
4.7.1.1.13 Satisfaction of Homemakers with Family Income Spent .......................174 
4.7.1.1.14 Overall Assessment of Spending vis-à-vis Family Goal Attainment .....176 
4.7.2 Categorisation of Homemakers into Levels of Family Welfare Status ..........177 
4.8 SECTION VIII .......................................................................................................178 
4.8.1 TESTING OF HYPOTHESES ...........................................................................178 
4.8.2 Hypothesis One ...............................................................................................179 
4.8.2.1 Age and Spending Practices.........................................................................179 
4.8.2.2 Educational Level and Spending Practices ................................................180 
4.8.2.3 Occupation and Spending Practices ...........................................................181 
4.8.2.4 Income Status and Spending Practices ......................................................182 
4.8.3 Hypothesis Two ..............................................................................................182 
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4.8.3.1 Educational Level and Consumer Credit Use ............................................183 
4.8.3.2 Occupation and Consumer Credit Use .......................................................183 
4.8.4 Hypothesis Three ............................................................................................184 
4.8.5 Hypothesis Four ..............................................................................................184 
4.8.6 Hypothesis Five ..............................................................................................185 
CHAPTER FIVE .............................................................................................................186 
SUMMARY, CONCLUSION AND RECOMMENDATIONS ......................................186 
5.0 Introduction ............................................................................................................186 
5.1 Summary ................................................................................................................186 
5.2 Conclusion .............................................................................................................191 
5.3 Recommendations ..................................................................................................191 
5.4 Suggestion for Further Research ............................................................................192 
5.5 Research Contribution to Knowledge ....................................................................192 
BIBLIOGRAPHY ............................................................................................................195 
APPENDICES .................................................................................................................208 
APPENDIX 1 ...............................................................................................................208 
APPENDIX 2 ...................................................................................................................228 
APPENDIX 3 ...................................................................................................................231 
APPENDIX 4 ...................................................................................................................232 
APPENDIX 5 ...................................................................................................................233 
 
  
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LIST OF TABLES 
Table 3.1 Proportionate Sampling of Housing Units .......................................................100 
Table 3.2: Categorisation of Spending Practices .............................................................106 
Table 3.3: Analysis of the Relationship between Financial Stress and Spending Practices107 
Table 3.4: Analysis of Perception of Consumer Credit ...................................................107 
Table 3.5: Analysis of Consumer Credit Use ..................................................................108 
Table 3.6: Categorisation of Family Welfare Status ........................................................109 
Table 4.1: Age Distribution of Homemakers ...................................................................113 
Table 4.2: Region of Origin of Homemakers ..................................................................114 
Table 4.3: Educational Level Attained by Homemakers .................................................119 
Table 4.4: Primary Occupation of Homemakers .............................................................120 
Table 4.5: Household Size of Homemakers ....................................................................122 
Table 4.6: Mean Monthly Income of Homemakers .........................................................123 
Table 4.7: Main Sources of Homemakers’ Income .........................................................124 
Table 4.8: Main Contributors and Mean Amount Contributed for Household Upkeep ..126 
Table 4.9: Handling of Housekeeping Money .................................................................130 
Table 4.10: Mean Monthly Household Expenditure of Homemakers .............................132 
Table 4:11: Mean Occasional Household Expenditure ...................................................134 
Table 4.12.: Ranking of Expenditure Categories by Homemakers. ................................137 
Table 4.13: Factors Considered When Purchasing Food Items .......................................144 
Table 4.14:    Items Purchased in Bulk by Homemakers .................................................148 
Table 4.15: Factors that Influenced Homemakers’ Spending Practices ..........................150 
Table 4.16: Reasons for Credit Use by Homemakers ......................................................158 
Table 4.17: Purpose for Consumer Loans Obtained by Homemakers .............................161 
Table 4.18: Ownership of Property or Household Equipment by Homemakers .............174 
 
                                                                                                                                  
 
 
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LIST OF FIGURES 
Figure 2.1: Maslow’s Hierarchy of Human Needs ............................................................44 
Figure 2.2: Conceptual Framework indicating Relationships among study variables.......95 
Figure 3.1: Data Collection Procedure .............................................................................104 
Figure 4.1: Ethnicity of Homemakers ..............................................................................115 
Figure.4.2: Religious Affiliation of   the Homemakers ...................................................116 
Figure 4.3: Money Available for Monthly Household Use (GH¢) ..................................129 
Figure 4.4: Household Financial Decision Maker ...........................................................141 
Figure 4.5: Persons Responsible for Household Purchases .............................................146 
Figure 4.6: Categorisation of Homemakers into Levels of Spending Practices ..............155 
Figure 4.7: Categorisation of Homemakers into Levels of Financial Stress ...................156 
Figure 4.8: Categorisation of homemakers into Levels of Consumer Credit Use ...........163 
Figure 4.9: Frequency of Entertainment or Recreation ...................................................170 
Figure 4.10: Regularity of Saving by Homemakers ........................................................171 
Figure 4.12 Overall Assessment of spending vis-à-vis Family Goal Attainment............176 
Figure 4.13: Categorisation of Homemakers into Levels of Family Welfare ..................178 
 
                                                                                                                         
 
 
 
 
 
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CHAPTER ONE 
INTRODUCTION 
 
1.1 Background Information 
In the Ghanaian tradition, men are the heads of their families but women keep the homes 
and hold their families together (Nukunya, 2003; Udry & Woo, 2006). In the past, men 
played the productive role while women played the reproductive role. However, life’s 
demands such as the increasing economic needs of families and women’s cultural 
evolution have impacted the traditional role of women. Women have now assumed 
productive roles by joining the workforce in both the formal and informal sectors of the 
economy and are earning income (Nosé, 2010). Abotchie (2008) indicated that women 
also have the major responsibility of managing the family and household resources for 
the sustenance and welfare of family members. 
Patil (2012) pointed out that family upkeep does not require the use of available family 
resources only but also the knowledge and managerial skills of the homemaker to 
effectively use these resources to meet family goals. Resources available to the family 
include material goods such as money and credit (Patil, 2012).  Hilgert, Hogart & 
Beverly, (2003) described money as an important family resource because it represents 
the purchasing power of families and hence determines the frequency and pattern of flow 
of goods and services to the family within a given period. Schlater (2007) cautioned that 
money is a scarce and indispensable resource that has to be spent wisely for the 
attainment of family welfare. However, besides the limitation of money, poor spending 
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practices could hinder the enhancement of family welfare. Leskinen & Raijas (2005) 
stressed that the choices and decisions made in the financial domain have remarkable 
consequences for the financial well-being and welfare of family members.  
Financial management has to do with the day-to-day financial activities necessary to 
effectively utilize money, and the central objective is to improve family welfare (Balance, 
2011; Hasting et al., 2013). Chatzky (2012) emphasized that money management skills 
are a vital element in disciplining homemakers to achieve a quality family life because 
their spending practices will go a long way to influence the way they manage family 
income throughout the family lifespan.  
Spending practices involve decisions and actions that individuals and families take 
concerning the use of money. It includes decisions about what money is spent on, how 
much is spent, the order and sequence of spending, set time for spending, and the 
satisfaction derived from the use of money (Kirchler, 2008; Chatzky, 2012). Spending 
practices are influenced by socio-demographic characteristics such as occupation, level of 
income, as well as personal characteristics such as ambitions, values, likes and dislikes 
(Pine, 2009; Giles, 2011). 
Good spending practices focus on managerial principles and processes such as planning, 
organizing, implementation and evaluation of spending plans. (Freeman, 2006; Anyakoha 
et al., 2008; Pantil, 2012). Good spending practices could significantly enhance family 
welfare especially when family income is limited (Giles, 2011; Hasting et al., 2013). 
Greve, (2008) described family welfare as the overall state of wellbeing of family 
members in terms of fulfilling essential needs such as food, clothing, healthcare, 
education, transportation as well as satisfaction derived from money spent. Finlay (2009) 
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explained that at the macro level, money can be used as an instrument for achieving 
family welfare. This implies that family welfare can change over time, and to a certain 
degree is dependent on the level of income. Giles, (2011) and Hasting et al., (2013) hold 
the view that the ability of homemakers to efficiently utilize family income to get the 
welfare status they desire, involves the application of knowledge in financial 
management, good decision-making and taking actions directed towards meeting family 
needs. On the contrary, it is argued that regardless of homemakers’ knowledge in 
spending, certain situations could negate their decisions and create financial gaps which 
could be filled with consumer credit use (Finlay, 2009; Van Praag & Frijters, 2009).  
 
Consumer credit is a financial resource that enables the transfer of money, goods and 
services to individuals for personal, family or household use for which payments are 
made in the future. (Hartarska & Gonzalez-Vega, 2006; Finlay, 2009). It is considered 
“elastic income” because its use expands purchasing power at any given time and thus 
makes possible the provision of more goods and services than cash on hand would allow. 
Muske and Winter, (2010) stipulated that consumer credit use has been in existence for 
decades; however, in the past five decades, many people emphasized the importance of 
living within their means and frowned upon the use of credit but in present time, the 
influx of consumer credit and its use suggest that many consumers are losing the essential 
value of living “within their means” in their spending.  
Ahmed (2009) attributed the increased use of consumer credit by Ghanaian homemakers 
to factors such as the high cost of living, unemployment, low salaries and impact of 
aggressive advertisements and increased availability of credit facilities. Finlay (2009) 
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also observed that in developed countries the widespread increase in consumer credit use 
could be attributed to families losing interest in budgeting.  
Consumer credit use and management are critical in family welfare (Hartarska & 
Gonzalez-Vega, 2006). It is however cautioned that despite the benefits, when misused, 
credit can cause serious financial problems and hardships such as over-indebtedness, 
inability to budget, save or invest, despair and crisis, insolvency, and bankruptcy. But the 
question that arises is: are Ghanaian homemakers aware of how their spending practices 
and consumer credit use influence their family welfare?  
 
1.2 Statement of the Problem 
A major responsibility of Ghanaian homemakers is the management of family finances to 
meet family goals. The ability to do this successfully depends not only on the amount of 
money available but also on the homemaker’s knowledge and skills in money 
management. Money management skills are a vital element in disciplining homemakers 
to achieve quality family life because their spending practices will influence the way they 
manage family income through the family’s lifespan. Homemakers are faced with a 
daunting task of allocating the limited family income to enhance family welfare. 
Evidence from literature shows that good spending practices could significantly enhance 
family welfare especially when family income is limited. However, the influx of 
consumer credit and its use suggest that some Ghanaian homemakers are living beyond 
their means in their spending. Most information on spending practices especially 
budgeting is from developed countries, while very little is known about the practice in 
developing countries including Ghana. Studies on consumer credit use in Ghana focus on 
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micro-finance or consumer loans. Again, studies relating to the influence of consumers’ 
socio-demographic characteristics on consumer credit use are not available, neither has 
the influence of spending practices and consumer credit use by Ghanaian homemakers on 
family welfare been explored nor understood. Information from this study is crucial in 
Ghana today and in the future, because it will enable both present and future homemakers 
make informed and effective decisions regarding the use and management of money and 
credit. The information would also reduce the stress experienced by homemakers as they 
perform their financial responsibilities which are central to family welfare. The study was 
therefore conducted to address some of the gaps exposed. 
1.3 Aim of the Study 
The aim of the study was to assess how the spending practices and consumer credit use 
among homemakers at Sakumono Estates influenced their family welfare. 
1.4 Specific Objectives 
The specific objectives of the study were to: 
1. Examine the income and expenditure patterns of homemakers. 
2. Investigate the management principles applied by homemakers in the use of money. 
3. Assess homemakers’ perception of consumer credit and consumer credit use. 
4. Identify factors that influenced homemakers’ spending practices and consumer credit 
use. 
5. Assess homemakers’ family welfare statuses. 
1.5 Hypotheses 
Based on the conceptual framework, five hypotheses were formulated. 
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Ho1: Homemakers’ socio-demographic characteristics (age, educational level, marital 
status, and occupation) and spending practices are not related? 
Ho2: There is no relationship between homemakers’ socio-demographic characteristics 
(age, educational level, marital status, occupation) and consumer credit use? 
Ho3:  Homemakers’ spending practices and consumer credit use do not have any 
relationship? 
Ho4:  There is no relationship between homemakers’ spending practices and family 
welfare? 
Ho5: Homemakers’ consumer credit usage and family welfare are not dependent on each 
other? 
1.6 Significance of the Study 
 
1. No known study of this nature has been conducted in Ghana. It is therefore 
envisaged that the results have contributed important primary data to the rather limited 
information on “the influence of homemakers’ spending practices and consumer credit 
use on family welfare” particularly in Ghana. The results when published will also 
provide updates to the literature on the roles and responsibilities of homemakers as 
financial managers of households.  
 
2. The findings threw light specifically on the strengths and weaknesses of 
homemakers’ spending practices and consumer credit use which could be beneficial to 
stakeholders including family and consumer scientists, extension workers, the ministry of 
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education and microfinance in designing suitable programmes to address emerging 
issues. Such empowerment would enable homemakers to make informed and effective 
decisions regarding the use and management of money and credit to enhance family 
welfare. Also, the stress experienced by homemakers as they perform the important 
responsibility as financial managers of households is likely to reduce. 
 
3. Understanding the factors that influence spending practices and consumer credit 
use would enable financial counsellors and educators identify areas to stress in devising 
programmes in family financial management. This could enlighten families particularly 
homemakers to adopt good spending practices and effective consumer credit use that 
would enhance family welfare. 
 
1.7 Operational Definition of Terms 
For this study the following terms were defined as follows: 
 
Homemakers: Women who keep their homes and manage the available household 
resources to sustain their families. 
 
Spending practices: Decisions and actions taken by individuals or families concerning 
the use of money. These include decisions about what money is spent on, how much is 
spent, prioritisation of spending, set time for spending, where to spend and the 
satisfaction derived from the use of money. Spending practices also include the frequency 
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of compliance with fifteen financial management principles adapted from Hayhoe et al. 
(2000). 
 
Family upkeep: Organisation of the day-to-day household activities and the provision of 
basic needs for food, shelter, clothing, education, good health, home maintenance as well 
as meeting the social, emotional, moral and psychological needs of family members.  
 
Family welfare: The overall state of wellbeing of members of a family in terms of their 
food intake, clothing, healthcare, education, transportation, entertainment, economic 
security, ownership of property and satisfaction derived from money spent. 
Consumer credit use: this covers the use of any form of consumer credit such as cash 
loans, sales credit, credit cards, as well as service credit (payment for services rendered).  
Family: a group of blood-related or unrelated people who live together and share 
common resources. This includes husband, wife or wives, their children and extended 
family members living with them. 
 
  
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CHAPTER TWO 
LITERATURE REVIEW 
 
2.1 Introduction 
In this chapter, the review of literature relevant to the study include:   
 The family concept: definition and types of families 
 Households structure and composition  
 Types and functions of the family  
 Women’s roles and responsibilities in family life 
 Family life management and family resource management.  
 Money as a resource, family income, financial management  
 Consumer spending practices 
 Factors that influence spending decisions and family expenditure 
 Consumer credit: types, factors that influence consumer credit use 
 Functions of consumer credit and consumer credit management  
 
2.2 The Family Concept 
2.2.1 Definition of Family: 
Munro and Munro (2003) stated that no universal definition of the family exists; 
however, a number of definitions are considered appropriate. Anthropologists say a 
culture’s biological and marital kinship rules and patterns of reciprocal obligations define 
family. Each culture defines who is biological and marital kin and the obligations kins 
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have to one another. In one culture, kinship is based on the father’s biological line; in yet 
another kinship, it is based on a mother’s biological line; yet another kinship, it is based 
on a combination of both father’s and mother’s biological lines. Some cultures maintain a 
distinction between brothers, sisters and cousins, but African societies make no such 
distinction (Nukunya, 2003). 
 Nukunya (2003) describes the Ghanaian family as a well-marked part of the cultural 
pattern of society. It is a part of a large group identified by a kinship bond. The kinship 
grouping in these cases is always on a unilateral basis; that is, lineage is traced either 
through the mothers’ line or through the father’s line.  Groups so bound together 
constitute clans or gens or what may be described as a ‘great family’.  He explained that 
in a patrilineal type of grouping, women upon marriage become members of their 
husbands’ clan or gens as do their children, whereas under the matrilineal system, the 
father may be eliminated as a member of the household and his status does not carry with 
it the same responsibilities. As the cultural cornerstone of any society, the family 
transmits its cultural history, instils its prevailing value system and socializes the next 
generation into effective citizens (Nukunya, 2003).  
 The United Nations Census Bureau (2000) however, described a family as a group of 
two or more persons related by birth, marriage or adoption and residing together in a 
household.  The group commonly consists of husband, wife/wives and their biological 
children and sometimes may include dependants or extended relatives. Similarly, Olson 
& Defrain (2000) consider as a family system, individuals who are independently 
responsible for themselves, as well as related or unrelated individuals who share at least 
some portion of their day-to-day interests and necessities through mutual interaction.  
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Both definitions place emphasis on the system and reflect a broader concept of the 
composition of the family, including individuals who live alone. Nukunya (2003) stressed 
that each individual as a family member acquires a recognized status.  By virtue of a 
recognized and named relationship, each individual belongs to a particular group and 
family status carries with it, specific rights and obligations determined and upheld by 
custom, law and ethics.   
Goldsmith (2005) summed up that the family is one of the essential elements required for 
society to survive, ensure continuity and preservation of its social norms and also an 
economic unit in the sense that resources are shared. In the context of this study, a family 
is defined as a group of blood related or unrelated people who live together and share 
common household resources. This includes husband, wife/wives, their children and 
extended family members living with them. 
 
2.2.2 Types of Family 
Three main types of family units have been established by Nukunya, (2003); Anyakoha 
and Eluwa, (2008).  These include: 
1. A nuclear or monogamous or biological family which comprises a married couple and 
its biological or adopted children. 
2. A polygamous family which comprise a man, his wives and their children (polygyny) 
or a woman, her husbands and their children (polyandry). 
3. An extended family which is made up of aunts, uncles, cousins, grandparents, in-
laws, nieces and nephews.  They explained that the extended family system is the 
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most common type practised in Ghana.  Its usage is in twofold: in the first instance, 
it refers to a residential group comprising a series of close relatives built around 
either patrilineal or matrilineal lines and usually not along both.  The second usage 
refers to a social arrangement in which an individual has extensive reciprocal duties, 
obligations, and responsibilities to relations outside his/her nuclear family. 
 
However, a fourth type of family identified by Ahmed (2009) is the single-parent family 
in which only one parent is present and shoulders family responsibilities and obligations 
single-handedly.  They explained that even though there have always been single-parent 
families, in the past they usually resulted from the death of a parent but now they are 
likely to be created by divorce, separation, unmarried procreation or unwed pregnancy.  
Sussman (2002) chartered pluralism in family structure and refers to their distribution as 
nuclear families, childless families, single-parent families, three-generation families and 
kin-networks, as well as single people living alone.  He also described four emerging 
family types: commune families, unmarried parent and child families, (usually mother 
and child), unmarried couple and child families (usually a common-law marriage), 
intentional couples (cohabiting and homosexual couples).  Sussman (2002) concluded 
that the number of members and the form the household unit takes is less important to the 
well-being of society than the quality of family functions performed and the relationships 
that exist among the members who are present. 
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2.3 Households 
2.3.1 Definition of households  
Members of the family may live together and form a household.  The household concept 
is based on the agreements made by persons, individuals or groups, for providing 
themselves with food and other essentials for living (Goldsmith, 2005). A household has 
been defined by The UN Bureau of Census, (2000); Nukunya, (2003) and Goldsmith, 
(2005) as consisting of a person or group of persons who live together in the same house 
or compound, share the same housekeeping arrangements and are catered for as one unit.  
Such members may be related through blood or unrelated or a combination of both.  The 
emphasis is on living together under the same roof and having common provision for 
food and pulling resources together. Similarly, Goodman (2000) explained that the term 
“household” is a broader, more inclusive term than “family”.  Household is more 
descriptive of housing arrangements than of the relationship of group members.  The UN 
Census Bureau (2000) stipulated that household comprises all persons who occupy a 
“housing unit” - that is a house, an apartment or other group of rooms, or a single room 
that constitutes “separate living quarters”.  It is explained that a household includes 
related family members and all unrelated persons if any such as lodges, foster children, 
wards or employers who share the housing unit. This implies that a person living alone or 
a group of unrelated persons sharing the same housing unit is also counted as a 
household. 
Nukunya (2003) and Goldsmith (2005) stipulated that households are settings in which 
membership roles vary even for persons of similar age, gender and kinship affiliations. 
For example, household locations, universal activities of reproduction, production, 
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consumption, sexual union and socialisation of children occur.  However, the degree to 
which these activities occur is household-based and vary cross-culturally and intra-
culturally. 
2.3.2 Structure and Composition of Households 
Munro and Munro (2003) stated that in American societies, households consist of a 
single-family but in African societies, they consist of several families who could be of the 
same kin or have no kin relationship.  Family members could also be spread between 
households either temporarily or permanently.  For instance, a married woman while 
young may continue to live in her father’s household, while the husband lives under a 
separate roof.  Nukunya (2003) explained that in most parts of Ghana, the traditional 
household structure was based on male-headed units of extended families consisting of 
wives and their children and often extended with unmarried or elderly relatives. 
According to Nukunya (2003), traditional Ghanaian households may include: 
 a man, his wife or wives and children with other relatives or house helps living 
with them; 
 two or more unrelated persons living together in a flat or a one-room apartment, 
sharing a common eating arrangement; 
 two adult siblings living together and caring for themselves; 
 a large family house with more than two generations of people, with a common 
eating arrangement; 
 a visitor who spends the night and eats at least one meal a day with the household; 
 one person living alone. 
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The composition of households in Ghana reflects the structure of the extended family 
system.  In a patrilineal system practised among ethnic groups such as the Anglos, the 
household is composed of a man, his wife or wives, their unmarried children, their 
married sons and their wives and the married sons’ children (Nukunya, 2003).  He 
explained that each household within any community is distinct due to variance in 
resource availability and consumption requirements which are determined by its 
composition at any given time.   
 
2.3.3 Household Types 
All households have a head, that is, the person or one of the persons in whose name the 
housing unit is owned or rented and maintained.  The traditional household in most parts 
of Ghana is based on headship. Asare & Quartey (2002) described the head of a 
household as the breadwinner or any person recognized as such who is generally 
responsible for the upkeep and maintenance of the members.  The household head is 
involved in the daily decision-making for its members.  They explained that a household 
may be headed by a male (male-headed household) or by a female (female-headed 
household). However, in many parts of Ghana, the household head is normally assumed 
to be a man who represents the household (Asare & Quartey, 2002). The man is 
perceived as the breadwinner and the financial supporter while all other members are 
defined as dependents.  However, in the past decade, a new phenomenon which has 
caught the attention of policymakers is the female-headed households (Ghana Population 
Census Report, 2012). The economic conditions of households vary considerably, 
depending on factors such as; marital status, the social context of leadership, access to 
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productive resources and income available. Male-headed households are typically those 
with a relatively large number of members (Asare & Quartey, 2002). The Ghana 
Population Census Report (2012) indicated that two-thirds of household heads were 
males while about one third were females.   
Allen (2000) also reported that in the traditional Ghanaian society, the man has been 
looked up to as the household head and breadwinner for the family.  He was therefore 
charged with the responsibility of the family’s welfare.  In the process, he was given 
control over the necessary economic resources such as land, labour and money. However, 
the structural transformation of the Ghanaian society has dramatically changed, making 
women assume more responsibility for household affairs. Women are the homemakers 
since they manage the available household resources to sustain their families (Allen, 
2000; Nukunya, 2003). 
 
Udry & Woo (2006) explained that female-headed households usually consist of a 
woman and her dependants that may or may not be her children. The women assumed the 
role of providing income and other resources for their households as well as making daily 
decisions to maintain their homes. Nukunya (2003) outlined factors that account for most 
of the female-headed families to include divorce, widowhood, transfers from one place to 
another, education, migration and culture.  He explained that in some cases, women who 
have been maltreated in their matrimonial homes choose to establish their households to 
gain independence in decision making and to escape male violence and economic 
reliance on irresponsible men (Nukunya, 2003).   
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2.4 Functions of the family 
Goldsmith (2005) explained that families differ and the functions, purposes, 
responsibilities for sustaining health and cohesion, and expected activities served by their 
lifestyles are diverse. Family functions have been summarized into two classifications by 
Olson & Defrain, (2000), Goldsmith (2005) and Nosé (2010) as follows: 
a. the expressive functions of interpersonal relations used in meeting the 
developmental and emotional needs of its members including morale, loyalty and 
socialisation of children. For example, the family regulates behaviour, provides 
companionship, commitment, emotional support, mutual interaction, group unity 
and shared interest;  
b. the instrumental functions concerned with decisions made in acquiring and 
managing resources to accomplish the work of the family and achieve a wide 
variety of goals. For example, the family plays economic functions by sharing 
income earned by family members, teaching values necessary to make economic 
decisions and improving on the family welfare. They concluded that the family as 
a major system fulfils special functions as it interacts with other subsystems of 
government, business and community.  Because families build and maintain 
lifestyles, families motivate change not only in members of the group but also 
through their interactions with other systems.  These interactions cause changes in 
the value priorities of business, government and schools. 
 
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According to Nosé (2010), a decrease in the number of functions performed by families 
is as a result of other institutions providing options for services which were formally the 
exclusive domain of families. Some functions of the Ghanaian family include: 
 
a. Procreation or Reproductive Unit 
The family provides the generally accepted relationship for the procreation of children.  
This is made possible through marriage which lays the legal foundations for family 
establishment. Living units are often constructed for the purposes of love and 
companionship. Ahmed (2009) explained that the family bears and rears children for the 
society and by this function; the family contributes to the nation’s population.  More 
importantly, the family reproduces itself so that as older members die, younger ones are 
born to replace them. Nukunya (2003) stressed that marriage and family life are expected 
to be fulfilling and functional not only for the contracting spouses but also for their 
families and the society at large. He concluded that successful marriages provide 
emotional support and psychological advantages to the whole family. 
 
b. Socialisation 
Nukunya (2003) explained socialisation as a process by which young human beings learn 
to interact and work with other people and acquire the values and knowledge of this 
group and the social role appropriate to his position in it.  Unlike procreation function 
which is the sole responsibility of married couple within the household, socialisation 
function is shared by other members and social organisations and institutions such as 
schools, churches, and media among others.  Despite this, the family remains the earliest 
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and most significant agent of socialisation. Similarly, Ahmed (2009) is also of the 
opinion that the family is the first and foremost socializing agent. It helps to socialize its 
members by bringing up children in the ways of the community. The family also teaches 
and trains the child several basic skills needed for life. Liston (2005) explained that 
families perform this function by helping members acquire basic personal discipline, 
necessary interaction skills, essential role competencies, appropriate attitudes and 
aspirations, personalized values and orientations that are consistent with their present and 
anticipated environment. 
 
c. Economic Function 
The family is seen as an economic unit whose members contribute to make a living.  
Adult household members engage in productive work and earn income which they share 
with family members such as children, the aged and invalid who cannot meet their own 
financial needs (Abotchie, 2008).  He explained that the family is also a consumption 
unit.  Its utility is derived not simply from the consumption of goods and services 
purchased from the market place but also the range of home-produced goods and services 
because they comprise objects of final consumption produced with the household.  These 
are considered similar to use-values which are goods produced within the households 
with fixed variable inputs and labour.  Thus, as a socio-economic unit, the family 
members live and work together as the basic labour unit, sharing both production and the 
proceeds of their labour. Nukunya (2003) described the economic function of the family 
in three folds: production, consumption and emotional support.  He explained that the 
family’s productive function is to provide many of the services individuals need for 
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interaction with the environment and the family’s consumptive function is to purchase a 
good deal of the goods and services produced by the economy.  The family’s affective 
function, he stressed, is of importance for the social service worker; for it is the family 
setting that the individual can freely express personality needs and expect to receive 
understanding, consideration and love. He stated that the contemporary family has 
become a private world in which members are expected to give the emotional support 
necessary to help them endure the harsh realities of an increasing impersonal individual 
society.  
 
d. Care and Protection 
Abotchie (2008) explained that the family provides care, protection, security and love to 
its members.  It provides warmth, food, shelter and affection which the infant needs for 
survival, emotional and psychological growth. This care and protection is extended to the 
physically challenged, the sick and the aged.  The adult members of the family provide 
one another with material and emotional support that anyway cannot be readily obtained 
outside the family context.  The family also provides its members with recreational 
facilities and opportunities which provide mental and physical exercise and promote 
creativity and independence in children. Ahmed (2009) also buttressed the point that the 
family provides appropriate kinds and amounts of affection for each family member. 
Parents also encourage personal growth, emotional development and self-fulfilment of 
their children through love and support given to children. Children are also expected to 
love and support their parents and other family members. Talcott and Passons (2004) 
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maintain that family life is personal and members are accepted for who they are, whereas 
economic life is impersonal and people are accepted for their talents and abilities. 
 
e. Status and Identity-Giving or Social Placement 
Abotchie (2008) noted that the individual’s family background is the most significant 
single determinant of his status in society.  The family gives status and identity to its 
members through the naming of each child who is born into it.  Names provide clues to 
one’s family and even at times the ethnic group or country.  One’s family may also 
provide one with a social class which is used to determine whether one should be a chief, 
a prince or princess or linguist among others.  Most often people belong to the kind of 
social groupings that their parents belong such as religion, social class and jobs that 
parents do. 
 
Olson and Defrain (2000) summarised family functions as systems where love, respect 
and responsibility are shared and taught. Families are nurturing and humanizing systems 
where resources are drawn from the environment and transformed into physical 
nourishment for the well-being of members of the group.  Families provide opportunities 
and guidance in personal growth and development over time, helping members to achieve 
identity and self-definition.  Goldsmith (2005) holds the view that families are systems 
for regulating behaviour in both a moral and a social sense, through discipline based on 
education rather than restraint. Families provide environments where companionship, 
commitment, emotional support, mutual interaction, and shared interest may be explored. 
She stressed that families establish lifestyles and provide meaning for life. They develop 
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values and teach role patterns for human transactions as well as provide a place where 
rest and rejuvenation can take place. 
2.5 Women’s Roles and Responsibilities in Family life 
Traditionally, men are the heads of their families but women keep the homes and hold 
their families together (Allen, 2000; Nukunya, 2003). Goldsmith (2005) holds the view 
that the management of the home is usually shared by family members. However, the 
responsibility for carrying out much of these activities rests on the woman who is usually 
the homemaker.  Gender roles in family life are changing so no longer are men exclusive 
breadwinners nor women exclusive homemakers. For instance, more than a third of all 
married women worldwide are employed outside their homes in both formal and informal 
sectors (Coertze &Anderson, 2001). In addition to playing a direct role in economic 
production, most of the world’s women provide for the basic needs of their families, 
often placing their family members’ needs before their own. Regarding women’s roles 
and responsibilities, Oppong and Abu (1987) identified seven roles as wives, mothers, 
housekeepers, workers, kins, community workers, and the status of employed women. 
2.5.1 Role as a Wife 
Nukunya (2003) stated that the institution of marriage is very important in all African 
Societies. So before a potential spouse will be selected and accepted, some basic qualities 
should be met. For instance, there should not be serious diseases, criminals or witches in 
the family. The prospective spouse should be hardworking and respectful.  He explained 
that the status of a wife comes with obligations and duties, and as a wife, a woman is 
under the guardianship of her husband.  Her responsibility is the general upkeep of the 
home, preparing food for the family and caring for the children.  She is also expected to 
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be a sexual partner to her husband.  Whereas her husband has absolute right over her 
sexual services, she cannot claim complete or absolute sexual rights over him.  She is 
expected to bear children for her husband’s lineage in a patrilineal society. 
 
2.5.2 Role as a Mother 
Ahmed (2009) refers to this role as child-bearing where the mother is responsible for 
bearing and rearing children.  This is a biological and cultural role which includes 
pregnancy, childbirth, breastfeeding, childcare and maintenance.  The woman feeds, 
clothes and nurtures children.  Oppong and Abu (1987) explained that in Ghana, social 
and cultural pressures persist for childbearing to continue throughout the potential 
reproductive span.  Ghanaian women combine childbearing and rearing duties with their 
economic activities.  Because barrenness is frowned upon in the Ghanaian society so 
many women begin to have children immediately after marriage and sometimes continue 
until they are not in the position to do so anymore.  As a result, mothers continue to be 
awarded higher social prestige than their counterparts who do not have children 
(Anyakoha & Eluwa, 2008). 
Lee Seiw Kim and Seaw Ling (2001) reported that in Singapore, the society continues to 
emphasise women’s basic role as mothering (childcare and household chores). As a 
result, working women face role strain. Some of the work and family conflicts that arise 
include time pressure, work stressors, parental demand, and family support among others.  
However, spouse support reduced work-family conflict for women professionals in 
Singapore. 
 
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2.5.3 Role as Housekeeper 
Abotchie (2008) reported that customary residential arrangements after marriage vary. 
For instance, among the Ghanaian southern ethnic groups, the Akan and Ga traditional 
patterns of residence for husbands and wives were separated or apart, with spouses 
frequently residing with kin rather than wives or husbands and these customary patterns 
continue to some extent. The GLSS6 (2014) reported that in Ghana, 30.5% of household 
heads are women, and the majority of separated, divorced and widowed household heads 
are women, as many women in their later years do not remarry. Domestic activities in 
terms of housework, cleaning, washing, preparing and cooking meals in some cultural 
areas have been a full-time occupation for women. Women sometimes have to add 
domestic tasks to their major activities or productive and income-earning work. This 
tends to make the working day long. Findings from Hevi-Yiboe et al., (2004) on women, 
men and housework in Ghana confirmed that Ghanaian households are dual-earner 
households but women did all the housework in addition to their income-earning work 
without much help from their husbands.  Even though women did all the housework, men 
and women shared the financial responsibilities equally. 
2.5.4 Role as Kin 
Oppong and Abu (1987) stipulated that women also play the role of kin when as sisters, 
daughters, grand-daughters and nieces, they still obtain access to livelihood through land 
or business opportunities, a place to stay in a family home or relative’s house, social 
prestige through association with names of wealth, power or antiquity and influence 
through links to kin with access to jobs, housing or commodities. Any of the above 
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mentioned may be an essential factor to their access to and maintenance of certain levels 
of economic, political or social status. 
 
2.5.5 Role as Worker 
As workers, women participated in various workforces especially for those within the age 
group of thirty and forty, the time of the life cycle when women were still childbearing 
and also caring for their children. The Ghana Living Standards Survey Report GLSS6 
(2014) indicated that 74.9% of females were economically active. According to the GLSS 
Ghana Statistical Service (2008), 41.6% of the economically active women lived in 
Accra. Whereas many women (60%) depended on agriculture for their livelihood, the 
majority of them were in rural areas.  The second most popular occupation is sales and 
commerce which was engaged in by most women in urban areas.  The GLSS Report 
(2008) indicated that a large percentage of female urban workers (70%) were engaged by 
the private sector, whereas 32% were engaged by the public service.  The main 
occupations of the employed female urban workers included: service/sales workers 
(37.8%), craft and related traders (19.1%), agric/fishery workers (16.3%), elementary 
occupations (15.4), professionals, (4.7%) clerks and technicians (2.8%) and associate 
professionals (2.6%).  The majority of female rural workers (70.2%) were in 
agric/fishery, (12.2%) were into craft and related trades, (10.0%) were service/sales 
workers while (6.3%) were in elementary occupations. 
Findings from Desai et al., (2011) showed that in India, being economic productive 
enhances women’s self-esteem.  However, the work-life balances do cause stress and 
strain in the working women.  Some obstacles like lack of spousal support and the non-
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availability of reliable childcare facilities, create serious barriers for the women to 
participate in the job market. 
Findings by Ho (2004) on women managers in Hong Kong also revealed that women 
represent one-third of the world’s workforce, do two-thirds of the world’s working hours, 
but only earn one-tenth of the world’s income.  The article indicates that the women were 
moving into new career roles and had started to climb the executive ladder.  Many 
women in Hong Kong had opted for a career in Management but they had to overcome 
many barriers to attain such managerial positions. 
2.5.6 Community Role 
Oppong and Abu (1987) maintained that community roles played by women are more 
pronounced in rural and more traditional urban communities. Women in these 
communities engaged in religious activities as well as groups, choirs, bible reading 
sessions and church services. These important socially approved occasions allowed 
women to meet each other and men.  In the urban areas, there was evidence of women 
who were alone and acting as individuals.  They were women who had migrated and their 
economic and sexual vulnerability in the context of increasingly violent societies was 
high. Urban women had other opportunities for leisure such as night clubs, cafés, clubs 
where women and men congregate to drink and enjoy nightlife.  Even though women’s 
roles are varied, they overlap and make women busy for most of the day.  Performance of 
these roles requires the use of various resources including money.  However, a majority 
of women combine these roles effectively to maintain their homes. 
Pely (2011) reported that women in Sulha, Northern Israel’s Arab community, play 
community role in traditional dispute resolution which is significant yet mostly invisible 
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during deliberations. The women’s involvement in Sulha (traditional dispute resolution) 
is only recognized at the earliest state during the pre-deliberation stage. The women play 
a key role in influencing their husbands’ decisions at home through discussions of the 
deliberations.  They also establish a healing process through a social network with other 
women relatives and friends.  Hence it can be said that the women play an informal role 
throughout the Sulha process. 
 
2.5.7 Status of Employed Women 
In Ghana three- quarters of women (74.9%) are economically active.  Many of them are 
engaged in Agriculture (44.7%) and Services (40.9%).  A little more than two-thirds 
(68.7%) of the employed women are own-account workers (46.4%) and contributing 
family workers (22.3%).  More than half (57.2%) of the employed women had formal 
education up to the basic level (GLSS6 Ghana Statistical Service, 2014). The Ghana 
population and housing census report (2012) indicated that 53.7% of the women are 
economically active. About half of the women (50.5%) are own-account workers, 27.9% 
are contributing family workers while 13.2% are employees. Aramand (2013) reported 
that women entrepreneurship in Mongolia serves as a platform to provide jobs and equal 
opportunities as well as contribute to social and economic gender equality. However, 
Mongolian culture such as collectivism, feminism and adventurism has an impact on 
women’s entrepreneurial motivations and success.  
 
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2.6 Family Life 
2.6.1 Explanation of family life and lifestyle 
Allen (2000) explained that the term family life is used to apply to the activities, tasks, or 
functions of the family; procreation, socializing, nursing and protective activities, 
materially helpful activities or consumptive activities.  Goldsmith (2005) on the other 
hand described family life as the continuing way in which individuals organize their 
personal relationships, use resources and relate to their social and natural environments.  
It includes the roles and relationships of those who make up the living unit, as well as the 
images they create through the use of their resources and the environments in which they 
exist. Again, the concept of lifestyle is explained by Anyakoha & Eluwa, (2008) as a way 
of living and may be strongly influenced by someone who is a dominant part of a 
person’s life at a particular time as is often the case of young children in the family. They 
hold the view that the limits of lifestyle may be imposed on people by circumstances 
beyond their control.  These limits may be expanded through conscious effort, education, 
the substitution of human resources for natural resources, or through changing confining 
expectations.  The maintenance of a particular lifestyle is based on a person’s value 
system and group and family expectation, for example, people demonstrate what they 
want, expect, and consider reasonable in their lives through the selection and 
implementation of a lifestyle (Abotchie, 2008). A family’s lifestyle is measured by a 
standard of living which is a composite measure generally used to measure the 
satisfaction in living (Allen, 2000; Goldsmith, 2005).  The term standard of living means 
all the things a person insists upon in life. These things are not just a collection of 
commodities enjoyed at a given time, but those that are so related to one another and so 
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important to the person that if any one of them is lacking, forces are immediately put into 
action to restore it.  The concept of standard of living was first described by Hoyt in 
1938.  Management specialists have continued to use Hoyt’s concept as a measure of 
what people consider important in life; a standard by which to judge lifestyle.  Greve 
(2008) outlined some indicators of family welfare to include: nutritional status, health 
status, educational status, economic security, clothing, transportation, recreation, 
ownership of property as well as the feeling of satisfaction or happiness people gain from 
their lifestyles. 
 
2.6.2 Quality of Life 
The U.S. Environmental Protection Agency (2008) described quality of life as the state of 
well-being of people as individuals or in groups, as well as the characteristics of the 
environment in which people live.  This definition implies both quantity and quality.  It 
includes the things people have, places in which they live, and their physical, social, 
environmental, and psychological conditions and characteristics at a particular time.  The 
State of wellbeing also includes people’s feelings of happiness or satisfaction with their 
material and non-material accomplishments and the surroundings of their community.  
According to Park et al. (2002), quality of life involves both objective aspects of reality 
and subjective perceptions and evaluations of life.  How people differentiate the 
important and the unimportant, as well as how people establish priorities in their lives 
and use available resources, can determine the direction of life in a changing world.  Park 
et al. (2002) again, emphasized that quality of life is due to the quality of management 
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used, and is dependent on the quality of decisions made in each process of the 
management system.  
 
2.6.3 Family Life Management 
Family life management is defined as a system whereby a person’s values, goals and 
standards direct the person’s resources, through everyday decisions and purposeful 
actions to improve the person’s quality of life in relation to others.  It is goal-directed 
behaviour using decision making, valuing, planning and organizing processes to guide 
resource use to improve the quality of life (Allen 2000, Goldsmith 2005). Life 
management is a holistic approach to managing throughout the life span of individuals 
and families. Life management focuses on the composite effect of many decisions 
evidenced in overall quality of life (Goldsmith, 2005). Goldsmith (2005) again explained 
that people who live together and hold similar values may direct their shared resources 
through everyday living to improve the quality of life of the group. Allen (2000) also 
explained life management to means planning goals relating to the everyday living 
environment and establishing patterns of action, and interaction with others that are 
directed toward a more satisfying lifestyle. According to Allen, (2000) life management 
involves evaluating the degree of success these action patterns have achieved and using 
this evaluation to provide feedback to improve plans.  
2.7 Family Resources 
2.7.1 Resources Explained 
Goldsmith (2005) defined recourses as assets or anything with a real or perceived value 
used to attain or satisfy a need.  These include any entity, tangible or intangible, that 
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contributes to the ability of an individual or family to produce valued outputs (Goldsmith, 
2005). Schlater (2007) however, pointed out that resources do not only provide means to 
satisfying the family system’s purposes or demands, but they are necessary for solving 
every management problem. She cautioned that resources have definite roles to play in 
management therefore each resource must be used most effectively and efficiently.  Allen 
(2000) explained that resources vary in kind and their potential for meeting the complex 
and unique needs and interests of individuals and families and the way they are used 
determine to a large extent the quality of life and well-being of family members. 
Resources are not available in equal amounts or identical mixes to all people because to 
be useful, resources must be earned, purchased, exchanged, inherited or developed.  
Everyone has a unique set of resources and uses those resources differently (Goldsmith, 
2005; Schlater, 2007). Allen (2000) reported that resourcefulness is the ability to 
recognize and use resources effectively.  A resourceful person skilfully uses resources to 
cope with daily challenges.  When resourceful people encounter a problem, they solve it 
or find a way around it rather than being defeated by it.  Resourcefulness is learned in 
families, schools, work situations and social organisations. In the context of this study, 
resources are defined as both human capabilities such as knowledge, skills and material 
goods and services such as money and credit. 
 
2.7.2 Classification of Resources 
Several classification systems of resources have been proposed by management 
specialists to include material or tangible resources such as land and houses while 
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intangible or human resources are human traits and capabilities such as knowledge and 
skills (Goldsmith, 2005; Schlater, 2007; Anyakoha & Eluwa, 2008).   
A more detailed interdisciplinary classification by Rice & Tucker (1986) includes human, 
economic and environmental resources. Human resources are instrumental traits or 
qualities vested in human beings and are made up of cognitive attributes, affective 
attributes, psychomotor attributes and temporal resources. Cognitive attributes are mental 
traits or characteristics of an individual that relates to knowledge acquired by reasoning 
and perception. Examples include intelligence, judgment, adaptability, self-control and 
resourcefulness. Affective attributes are traits and feelings pertaining to or resulting from 
emotions and include attitudinal characteristics such as interests, motivation, enthusiasm, 
faith, tolerance and sense of humour. Psychomotor attributes are the combined muscular 
activities with associated mental processes, ability and proficiency in carrying out 
activities involving physical exertion. Examples include skills, work habits, the senses of 
sight, smell, taste, touch and hearing. Rice & Tucker (1986) explained temporal resources 
to include clock time, perceived time or one’s time sense (psychological time) biological 
time which relates to the body’s circadian rhythm such as periods of alertness, 
depression, fatigue, feeling of hunger at certain times of the day.  It also includes time 
pace, past, present and future time as well as calendar time. 
Economic resources according to Rice & Tucker (1986) include money income, elastic 
income (credit), fringe benefits and wealth.  Money income is the gross receipts or 
monetary gains to family members derived from labour or capital.  It forms the 
purchasing power of individuals and families.  Examples include wages, commissions, 
interests, royalties, retirement benefits and monetary gifts.  Elastic income is current 
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purchasing power expanded through deferred payment.  It includes real estate mortgages, 
instalment payments, and cash loans.  Fringe benefits are non-money incomes derived as 
a result of employment, including medical care service, paid vacations, pension plans and 
medical insurance. Rice & Tucker (1986) again describes wealth as accumulated 
possessions and investments. It includes ownership of real property, income-producing 
assets, durables, household equipment, furnishings and personal possessions of family 
members.  Wealth also refers to the family’s pattern of asset holdings; such as savings 
accounts, stocks and bonds and other investments. 
 
In Schlater’s (2007) opinion, environmental resources encompass all resources available 
within one’s environment and are grouped into physical and social. Physical 
environmental resources include natural tangible surroundings such as water bodies, soil, 
plants minerals and less tangible ones but which can be measured such as air, light, sound 
space, humidity and temperature. Social environmental resources consist of social 
organisations which are the corporate human interaction systems that influence an 
individual’s values, habits and norms. Examples include the nuclear and extended 
families, friends and associates, civic groups and religious organisations. Political 
institutions which are the government structures and systems influence a person’s 
behaviour such as local, state and national governments, as well as the network of laws 
that each encompasses. Economic institutions which include business and industrial 
establishments provide goods and services to the public, furnish employment to 
individuals and provide capital investment opportunities. Community facilities or 
services are assets held in trust with citizens of a community. They are provided by 
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organisations, business or governments.  Examples include post offices, markers, schools, 
roads and recreational centres.  
Goldsmith (2005) again explained that the sum total of readily available resources an 
individual possesses is called a resource stock. The family also has a stock of resources 
that are continually being altered by using resources and developing or acquiring new 
ones. She pointed out that basic resources have alternate uses while highly refined ones 
are more specialized and therefore more limited in alternative uses. Anyakoha & Eluwa 
(2008) advised that resources need to be considered in combination because a mix of 
human and material resources is important in the overall well-being of the family.  The 
way resources are used also determines to a large extent the quality of life and welfare of 
the individual and family members. 
 
2.7.3 Family Resource Management 
Family Resource Management is defined as the decisions and activities that family 
members take to get the kind of living they want through the effective use of available 
family resources.  It is a process of using the family’s available resources to meet family 
needs or goals (Goldsmith, 2005; Schlater, 2007; Anyakoha & Eluwa, 2008).  They 
stressed that Family Resource Management requires mental work and physical power of 
family members. The process includes thinking, actions, functioning and events that 
occur over time. Good management of resources results in the improvement of the quality 
of living within the family and happiness in the home. Schlater (2007) described family 
resource management as a dynamic ongoing process which encompasses those human 
actions directed towards the realisation of values and goals, the prime feature of such 
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goal-directed activities is the systematic series of actions which constitute the making and 
implementing of interrelated decisions under conditions of uncertainty. She explained 
that effective management of family resources means recognizing one’s values and those 
of family members, understanding not only how decisions are made but also the factors 
which can affect them, determining immediate and long-term goals and the needed action 
to achieve each and also, allocating the use of resources within the management process 
to attain these goals. More and Asay (2007) asserted that family resource management is 
complex because the family has multiple goals and relatively limited resources. Several 
goals may compete for the same resources.  Pressures and events in the larger 
environment often compete with family goals in their demands upon family resources. 
They explained that effective family resource management is a learned skill which 
involves the management process. 
 
2.7.4 The Management Process 
The Management Process is described as a system of production operations composed of 
a series of actions or functions to bring about desired results (Patil, 2012).  The process 
involves four progressive and interdependent steps or activities often referred to as sub-
systems or functions.  They are planning, organizing, implementing and evaluating 
(Atogiyire, 2003; Goldsmith, 2005; Schlater, 2007; Anyakoha & Eluwa, 2008).  Planning 
is the first and the most important step in the management process because it tells exactly 
what one wants to do.  Planning involves setting and clarifying goals, establishing 
priorities among goals, setting standards for measuring goal attainment, determining the 
activities needed to achieve the goals and identifying the needed resources. They 
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emphasized that in identifying and clearing goals, one’s values and standards become 
sources of inputs. Organisation is the second step in the management process. Plans made 
have various activities which must be done by people at various times (Schlater, 2007).  
Organisation is the logical arrangement of these activities within the plan and it involves 
assigning responsibilities to various members, deciding on when and how to do what, as 
well as delegating authority.  Organisation consists of having the right thing in the right 
place at the right time. The sequence of activities is very important because it determines 
the success or failure of the plan (Patil, 2012).  
Implementation being the “action stage” or “doing step”, involves the actual process of 
putting the plan into action and ensuring that activities are moving on in the desired 
direction. At this stage, the homemaker supervises and controls the activities of those 
working with her and makes adjustments in the plan when necessary.  Major skills 
utilized in implementing plans are self-discipline and supervision (Anyakoha & Eluwa, 
2008). 
Evaluation as explained by Anyakoha & Eluwa (2008) is the assessment of progress 
whereby results are analysed and the effectiveness of the implementation is determined. 
This may result in making new plans or adjusting existing ones. It also involves the 
appraisal of the entire management procedure. 
 
2.8 Money as a Resource 
2.8.1 Money Defined 
McGraw-Hill (2001) defined money as anything generally accepted as a medium of 
exchange.  Historically, whales’ teeth, elephant tail bristles, circular stone, nails, slaves, 
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cattle, cigarettes, cowries and pieces of metal were used as media of exchange (Osteen, 
2012). Anyakoha & Eluwa (2008) stated that money is an important economic resource 
that represents the purchasing power of families and hence determines the frequency and 
pattern of flow of goals and services to the family within a given time.  Money is viewed 
as both a resource and a measure of resources and to accomplish financial goals; money 
must first be exchanged for goods and services. Thomas & Greco (2001) explained 
money is designated as legal tender by government and as a material resource; money 
comes in the form of currency, that is, coins and paper money in the hands of the public. 
Osteen (2012) also indicated that money is expressed in different currencies by different 
countries the world over. For example, cedis and pesewas in Ghana, dollars and cents in 
the U.S.A., pounds sterling and pence in the U.K., euros in Europe, CFA in France. 
Oleson (2004) explained that money is a major determinant of consumer satisfaction and 
is strongly linked to needs achievement. It also includes checkable deposits. Balance 
(2011) pointed out that to some people, money is the root of all evil.  To other people, the 
lack of money is perceived to be the basis of all troubles. Balance (2011) again within the 
sources of money to include wages and salaries, sales from goods and property, profit 
from trade, interest on investments, rent, monetary gifts, among others. She emphasized 
that money that can be counted on at regular intervals could be budgeted and planned but 
people with irregular incomes have more difficulty planning expenditures and need large 
savings to build financial security.  
 
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2.8.2 Importance of Money as a Resource 
The Akan saying that “Sika yԑ mogya” which means “money is blood” brings out the 
importance of money to the survival of individuals and families in the world today.  
Money is used in payment for goods and services and is said to serve as a medium of 
exchange.  Individuals and families are paid for the work they do and they, in turn, use 
this money to pay for the items and services that they need such as food, transportation, 
and housing in the form of rent or repairs and furnishings (Goldsmith, 2005). Schlater 
(2007) outlined other needs to include clothing, health care, education of family 
members, recreational activities and gift or remittances for parents and other relatives.  
Freeman (2006) explained that as a medium of exchange, money allows society to escape 
the complications of barter, and because it provides a convenient way of exchanging 
goods and services money allows society to gain the advantages of geographic and 
human specialisation  
 
Anyakoha and Eluwa (2008) stated that money is a unit of measure of the market value of 
goods and services.  Society uses the monetary unit as a yardstick for the relative worth 
of a wide variety of goods, services and resources.  With the money system, one needs 
not to state the price of each product in terms of all other products for which it can be 
exchanged. As a common denominator, money permits buyers and sellers to readily 
compare the prices of various commodities and resources and such comparisons aid 
rational decision making.  
 
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Balance (2011) explained that money is a store of value or measure of wealth because it 
is the most liquid, and the most spendable of all assets.  It is a very convenient way to 
store wealth.  Most methods of holding money do not yield monetary returns such as one 
gets by storing wealth in the form of real assets (property) or paper assets (stocks and 
bonds).  He indicated however that money has the advantage of being immediately usable 
by a firm or household in meeting all financial obligations.     
Oleson (2004) identified four common orientations toward money as follows: 
i. Money as Control: Where a person with control orientation sees money as a way 
of maintaining control over his or her life and independence from a partner or 
other family members. 
ii. Money as Security: Where a person is conservative in spending money and 
focuses on savings.  Such a person feels a great need to hang on to money to save 
it for future needs. 
iii. Money as Status: Where a person is interested in money as power and as a 
means of keeping ahead of others. 
iv. Money as Enjoyment: where a person gets satisfied from spending, both on 
himself or herself and others.  People with this attitude usually feel that unless 
they can enjoy money when they have it, there is no point in working hard for it. 
He explained that the resulting centrality of consumption in organizing human attitudes 
and behaviour grants a high level of importance to money that facilitates the acquisition 
of the material trappings of consumer culture. Oleson (2004) noted the prime location of 
money in consumer decision making and everyday life.  Also, money inculcates certain 
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values in people, derived from their socio-cultural environments and reflected in their 
everyday behaviour.  In this respect, money is deemed to have affective symbolic and 
behavioural components that serve economic as well as socio-cultural functions. He 
emphasised that money plays a special role in personal and social lives exerting more 
power over human lives than any single commodity.  
Robert and Jones (2001) observed that in American consumer culture, money is seen as a 
vehicle for attaining power and status.  Along with the increasing trend in viewing money 
as a source of status is the changing view of debt among American consumers. They 
noted that the increasing level of debt among American consumers is a result of 
consumer culture’s influence on people’s attitudes towards money. 
 
2.8.3 Money Attitudes 
Money attitude in this study is defined as the way people think, feel or behave towards 
money concerning spending. Oleson (2004) explained that differences in money attitudes 
are influenced by factors including age, educational level, occupation and gender. 
Balance (2011) reported that for people who pay greater attention to extrinsic aspects of 
life, money will be seen as more significant. The major functions of money will be 
viewed as bringing enjoyment and security in life and serving as a sign of achievement 
and success.  For those who value the intrinsic aspects of life, money is seen as lower in 
importance and cannot be used as an indicator of success.  Balance (2011) again 
explained that extrinsic goals such as financial success are those that depend on the 
reactions of others and are typically encaged in as a means to some end.  Conversely, 
intrinsic goals such as self-acceptance are expressive of desires congruent with 
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actualizing and growth tendencies natural to humans.  As such, intrinsic goals are likely 
to satisfy basic and inherent psychological needs. 
 
Balance (2011) developed a money attitude scale (MAS) based on the findings that 
money has a multidimensional construct with five constituent attitude dimensions.  These 
dimensions are power-prestige, time-retention, quality, distrust and anxiety.  The power-
prestige money attitude equates money with status and superiority.  Balance (2011) 
emphasised that people with this attitude use money to impress and influence others and 
believe that money is a symbol of success.  Such people also believe that money grants 
access to power and status, which allow the person with money a domineering role in 
society. 
The time-retention money attitude suggests hoarding and obsessive personality traits 
(Balance, 2011). People with a time-retention money attitude place a high value on the 
process of managing money pragmatically, and future financial security is their primary 
goal. Such people plan their consumption choices and behaviour carefully in anticipation 
of future financial security. It has long been known that poverty and social status 
influence a person’s time orientation which also affects attitudes towards saving and 
spending money. Roberts and Jones (2001) indicated that the distrust money attitude 
relates to insecurity and dissatisfaction with life while the anxiety dimension of money 
attitude leads to a lack of confidence and comfort. They emphasized that people with a 
distrustful attitude maintain an aura of suspicion around others. They lack self-confidence 
and are price sensitive. Ozgen and Bayoglu (2005) explained that people with the distrust 
or anxiety attitude worry a lot about money, especially for fear of other people taking 
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advantage of them.  They are likely to scrutinise every purchase they make to minimize 
the risk of being ripped off. Their anxiety translates into extreme care in all their dealings 
involving money. Such people do not see money as an avenue to happiness or social 
status. 
Quality money attitude relates to a sense of superiority and acquisitions made through the 
use of money (Balance, 2011). People with quality money attitude place a high value on 
quality for its own sake and believe that the more expensive a product, the higher its 
quality. Their discriminatory taste facilitates a low sensitivity to price, encouraging them 
to seek quality products without much regard for price (Cambell, 2006). Such people tend 
to be loyal customers who use brand cues for product quality assessments. One may 
conclude from this MAS perspective that money has affective symbolic and behavioural 
components. The affective component of money relates to its good or evil valuable 
aspects, while the symbolic aspects relate to the use of money as reflections of 
achievement, freedom, status and power (Brigaam & Houston, 2001).  Studies by 
Gbadamosi & Joubert, (2005) and Chatzky, (2012), suggest that the characteristics of 
money do not manifest themselves uniformly across people.  Rather, there are differences 
in attitudes towards money that are derived from a blending of individual values and 
behaviour in conformity with rules that society defines for the use of money. 
Gbadamosi and Joubert (2005) pointed out that a person’s attitudes towards money are 
influenced by culture and individual differences including gender and personal values.  
They observed a strong relationship between money spending and personality traits.  
Demographic factors such as family life cycle, age, educational level and socioeconomic 
status according to Ozgen & Bayoglu, (2005) are also important determinants of money 
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attitudes. For instance, gender differences in attitudes towards money include women’s 
use of money as a means to an end while men think of money as an end-power. Ozgen & 
Bayoglu (2005) again noted that men are obsessed with money especially for its power-
prestige corollary and are happier than women with their finances because they feel they 
have more control over their money. On the other hand, women, more than men, are very 
careful with money because they show concern for future financial security. 
Cultural environment is another source of difference in people’s attitudes towards money. 
Rathmayr (2004) demonstrated culture’s influence on money attitudes by tracing the 
changes in money attitudes in Russia from the Soviet era where money held little 
symbolic value to the present where money is everything.  In general collectivist cultures, 
Africans tend to perceive money as a tool that facilitates interaction with family and 
friends while individualistic cultures favour the power granting benefit of money. 
 
2.8.4 Needs Theory and Money Attitudes 
Literature in Social Science demonstrates that individuals have fundamental human needs 
and that if they are deprived of these needs, they will suffer physically and 
psychologically (Howard, 2000). Muske and Winter (2010) explained need as any 
requirement for a person’s survival, health, or basic liberties: meaning that, to the extent 
that if they are inadequately met, mental or physical health is impaired.  Thus ‘need’ 
refers to necessities for not only biological survival but also for the health and 
development (physical and mental growth) of persons as human beings. 
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Maslow (1948) was the first theorist to develop and integrate human needs into a single 
theory.  Maslow believed that in most humans there is an active drive towards health, 
growth and actualisation of the human potential.  Maslow characterized humans as 
always possessing some type of unfulfilled need.  He further explained that these needs 
arrange themselves in a hierarchical order, with “lower levels” of needs being met before 
the advancement of “higher levels” of needs.  In other words, as basic human needs (e.g. 
food and water) become sufficiently satisfied: another category of need soon emerges to 
take their place.  Then, as those needs are satisfied, they too fade into the background and 
are replaced by still other needs and so on. The human needs theory has increasingly 
drawn the attention of professionals in family economics and family studies. The theory 
is considered by professionals in family studies as relevant for the study of family 
financial concerns (Ozgen & Bayuglo, 2005). Fig. 2.1 presents Maslow’s Hierarchy of 
Human Needs. 
 
Figure 2.1: Maslow’s Hierarchy of Human Needs 
 
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Maslow (1948) explained that at the lowest level of the hierarchy of needs are 
physiological needs, including necessities such as food, water, sleep, shelter and other 
needs required to sustain life. Until these basic needs are satisfied to the degree needed 
for the sufficient operation of the body, the majority of a person’s activity will likely be 
at this level, and other levels will provide little motivation. When these basic 
physiological needs are fulfilled, other levels of needs become important, and these 
motivate and dominate the behaviour of the individual. The level of needs could be very 
useful in better understanding the families’ financial concerns, for example, in the family 
expenditure money could be used to secure items needed to meet the family’s 
physiological needs for food, clothing and shelter. 
According to Maslow (1948), safety or security needs (freedom from physical and 
psychological harm) become predominant after physiological needs are met. The need to 
be free of danger can have the same pervasive quality as physiological needs. An 
indication of the need for safety is the preference for routine and structure in life. 
Although safety need is often described as a need for “self-preservation”, Maslow (1948) 
broadened the view of stability and safety by including the human preference for familiar 
things as opposed to the unfamiliar. To meet security needs, the family could engage in 
the accumulation of wealth through savings and the purchase of various types of 
insurance, and other investments.  
The fulfilment of physiological, safety and security needs drives the individual to seek 
social needs such as belongingness, companionship and social acceptability. Maslow 
(1948) again pointed out that humans will seek with just as great as intensity to achieve 
this goal of affectionate relations as would a person strive for food and water when 
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stranded in a desert. At this level of the hierarchy, families could include in their 
expenditure money to provide for membership in clubs, as well as for other opportunities 
for social interaction which could facilitate one’s social needs. The family could meet this 
need by using money to impress and influence others to gain affection and social 
acceptability. 
Maslow (1948) again indicated that, after individuals begin to satisfy their need to belong 
and be loved, they generally want to be more than just a member of their group.  People 
have a general need and desire for status, self-respect, self-esteem, and the respect or 
esteem of others.  Maslow classified these esteem needs into two basic categories:  
Firstly, the desire for strength, achievement, adequacy, confidence in the face of the 
world, and for independence and freedom and secondly, the desire for reputation as 
prestige, recognition, attention, importance or appreciation. The satisfaction of the esteem 
needs leads to feelings of self-confidence, power, worth, adequacy and other feelings of 
usefulness. The family’s esteem needs could be met through high academic 
achievements, as well as the purchase of designer clothing, flashy cars, expensive houses 
and other items that tend to attract recognition and communicate that one has reached a 
high-status level. 
Once all the lower needs of the hierarchy have been satisfied, people become motivated 
to fulfil their potential.  This process of self-actualisation involves the need to become 
fully self-realized and to achieve one’s potential to the greatest extent possible.  This 
need for the development of potential requires the desire to become what people are 
capable of becoming or making their behaviour.  Consistent with who people are, 
Maslow (1948) contended that if people have met the other four basic needs, the need for 
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self-actualisation is “potent” enough to serve as their primary motivation for all 
behaviour to the extent that it signifies the achievement of personally defined goals and 
leads to paths of self-improvement; money may also contribute to a sense of self-
actualisation. To meet this level of need, the family budget could allow everyone to attain 
their full potentials. It is most likely that adequate meeting of the levels of family needs 
would promote individuals’ self-satisfaction which will positively impact family welfare. 
 
2.8.5 Family Income 
Family income is the flow of (commodities) goods and services, money and the 
satisfaction derived from the use of these by family members at a given period (Schlater, 
2007; Anyakoha & Eluwa, 2008).  The family income is divided into two main types: 
money income and non-money income. 
Money income is the flow of cash or purchasing power that a family has at a given 
period.  Money income is obtained from wages, salaries, monetary gifts, sales from goods 
and property, profit from a business, rent from real property, dividends or shares, interest 
from investments, bonuses from work and other investments producing a monetary 
return. Findings by Babatunde (2010) on expenditure patterns of Ghanaian families in the 
formal and informal sectors in Tabora (Lapaz, Greater Accra) revealed that all 
respondents (60) in the formal sector and (3) from the informal sector obtained their 
money income from salaries and wages.  Other sources included rent (75%), profit on 
trade (52%), gifts (48%), allowances and bonuses (43%). Similar findings by Ba-ama et 
al. (2013) on financial management practices of formal and informal sector women at 
Dodowa (Kpone-Bawaleshie, Eastern Region) revealed that all the formal sector women 
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earned money from salaries and wages while majority of the informal sector women 
(70%) earned money from petty trading. Other sources of money income included sales 
from small scale farming (72%) and produce from self-employed jobs such as 
hairdressing and sewing (25%). 
Yankey (2006) on the financial contribution of women to their households in some 
selected communities in the Central Region of Ghana confirmed that all the formal sector 
women had monthly salary as their main source of money income. A little more than 
70% of the informal sector women derived their income from trading while (35%) earned 
income from activities such as liquor brewing, farming, fish mongering and sale of 
cooked food. The Ghana Living Standards Survey GLSS6 (2014) reported that the major 
source of household income is from non-farm self-employment (48.3%). Others included 
wages from employment (32%) and household agriculture (16%). Income from rent, 
remittances and other sources contributed less than 5 percent to household income. 
Non-money income is explained by Goldsmith (2005) and Schlater (2007) as the flow of 
goods and services available to the family at a given period and is derived from the use of 
money in addition to: - 
i. Goods from the family farm.  
ii. The use of a house owned by the family.  
iii. Services derived from durable goods or property such as cars, household 
appliances, among others. 
iv. Services by family members for which they are not paid. 
v. Services derived from community facilities or public services that family 
members use such as schools, markets, among others.   
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Other forms of non-money income identified include: - 
i. Fringe benefits such as training and development allowances for housing, medical 
bills, uniforms and transportation that employees receive from their employers. 
ii. Psychic income: which is a feeling of satisfaction obtained from the use of all 
resources, available to the family and daily experiences such as interaction with 
people.  Psychic income is intangible and subjective.  But it is the most important 
of all the incomes in terms of quality of life.  The amount of psychic income to a 
large extent depends on the skills of managing everyday living.  
The UN Bureau of Census (2000) Report includes in the family income, the income of all 
related persons living in the same household. The largest group of income recipients is 
undoubtedly those whose income is wholly or mainly in the form of wages or salaries and 
derived from self-employment. The family income may come entirely from one family 
member, or it may be the sum of amounts received by several.  Likewise, the group 
depending upon a given income for support according to US Department of Commerce, 
Bureau of Census, (2004) may include several or one who is not an income contributor or 
it may include several who are not. The situation will depend upon the age of the family 
members, their relationship and the responsibility each is expected or is willing and able 
to assume. 
 
2.8.6 Financial management 
Financial management is the science or practice of managing money and other assets 
(Goldsmith, 2005). According to Osteen and Neal, (2012) financial management requires 
systematic and disciplined thought and action. For instance, saving money or spending it 
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requires self-discipline and control, the ability to set goals and a willingness to put future 
needs before current needs. Goldsmith, (2005) reported that a corollary appropriate to this 
say, before buying anything, ask yourself, “is this the best purchase for me at this 
moment?” This question alone will keep one away from accumulating unnecessary debt.  
Being debt-free is a goal in financial management. 
In systems terminology, financial management is a transformation process involving the 
identification of financial goals, the collection of information, analysis of resources, and 
the decision about whether to spend, invest or save and evaluation of decisions (Muske 
and Winter, 2004; Schlater, 2007).  They explained that the financial management 
process can be divided into three phases namely: planning, action and post planning. 
During the planning stage, individuals begin to identify or define their financial goals. 
They then identify potential financial opportunities and determine what information and 
funds are needed to take advantage of these opportunities. Once they have analysed their 
resources and decided how to use them, they can proceed to the action stage, where they 
save, invest or spend their money.   In this phase, a budget or spending plan or guide can 
be helpful by providing a visible means of controlling money.  At the end of the process, 
the decisions and their outcomes are evaluated. Throughout the process, money and other 
financial assets are treated as tools that can be used to enhance family welfare and 
provide for growth and security. 
Lifecycle approach holds the view that financial management in the household includes 
not only the day-to-day money management but some long-term activities as well, like 
savings and investment (Freeman, 2006).  To him, financial management refers to the 
practices of financial capability and further includes provision for future risks. They 
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explained that to be successful, financial management requires communication, and 
interaction between the household members. Prokerala (2013) reported that households 
used various ways to manage their financial resources. He explained that, regardless of a 
person’s financial knowledge and competence, his or her decision making is sometimes 
non-rational and based on institutions, or irrational and motivated by compulsions and 
urges.  
Freeman (2006) describes money management as an organized process of allocating or 
using money to achieve specific financial goals which represent individual or family 
needs. Anyakoha and Eluwa, (2008) stipulated that good money management will enable 
one to purchase more of the goods and services needed.  They explained that good money 
management depends on factors such as spending habits or practices, taste, values and 
standards of the individual or family. Osteen and Neal (2012) emphasised that effective 
money management also requires good decisions to be made.  
Prokerala (2013) postulated that money management is more than budgeting one’s 
income.  She advised that money management decisions should be made using composite 
income such as productive income (household production and durable goods), money 
income (salary and investment income), hidden income (community income), psychic 
income (satisfaction derived from the use of money and other resources), employment 
benefits and consumer “savings”. Some money management principles proposed by 
Freeman (2006) and Schlater (2007) include: - 
 
 
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i. Ensuring that one’s expenditure is within the limits of one’s income. 
ii. Identifying the needs to be achieved with the money available such as feeding, 
clothing, house rent, education etc. 
iii. Determining the income available to the family for achieving these goals. 
iv. Establishing priorities among goals, that is to determine which goals are most 
important and need to be attained early. 
v. Estimating the cost of each goal. 
vi. Making a budget on how to use the available income for achieving the goals. 
Make allowances for emergencies such as accidents and illnesses. 
vii. Organizing all efforts by setting up measurable sub-goals. Determine who pays 
the bills, makes the purchasing decisions, does the shopping and keeps records. 
viii. Controlling all money management activities by eliminating waste through 
a. Spending on planned goals and avoid impulsive buying. 
b. Comparing prices of commodities before buying. 
c. Reading any agreement before signing. 
ix. Keeping good records of any money spent.  Keep a file for all receipts such as 
bills, rent, school fees and household equipment. 
x. Evaluating regularly by assessing how well one’s money management activities 
are progressing. One’s spending can be adjusted when there are changes in 
income or emergencies. 
In this study, financial management is described as the decisions and actions taken by 
family members concerning how family income is spent to meet present and future 
needs. 
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2.8.7 Financial Planning 
Patil (2012) defined financial planning as a coordinated series of plans beginning with 
goals that reflect one’s values, attitudes, lifestyles, circumstances, wants and needs. He 
explained that most studies of the household recognize the importance of financial 
planning and decision making as a household function that must be performed by 
someone among its members, but few have treated financial resource management as 
“work”. This means that financial resource management is seen as a set of tasks that 
consume energy and time. Dahlia et al., (2009) noted that to succeed in financial plans 
depends on flexibility and making adjustments as needed. The family financial plan is the 
method of using money as a planned and shared family project. This means all members 
of the family are involved in the decision concerning what money is spent on, how much 
is spent and when the money is used (Hevi-Yiboe, 2004). Prokerala (2013) explained that 
financial planning begins with the setting of goals that indicate what one wants to achieve 
with the use of money. Priorities must be attached to goals to reflect their relative 
importance because it is usual to have more goals than financial resources. After this, 
available resources are identified and assessed in preparation for allocation to specific 
goals. This will involve listing assets, debts and anticipated income. She emphasised that 
good planning depends on making accurate estimates of future cash flow. It is helpful to 
have information about past expenditure as a basis for estimating the cost of 
accomplishing goals. After this, resources which are identified are then allocated to the 
desired goals and a strategy is developed to ensure that the goals are achieved. She 
concluded that managing the family’s money income can be a challenge, but it can be 
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done when it is planned step-by-step. This step-by-step money plan is called a budget or 
spending plan. 
2.8.8 Family budget 
According to Pantil (2012), a budget is a spending plan which serves as a guide to one’s 
spending: one that the budgeter controls. Pantil (2012) again cautioned that a budget 
should be flexible and should not put a straitjacket on spending. Many expenses such as 
money spent on food, clothing and entertainment are flexible, whereas other expenses 
such as rent and car payments are fixed. Osteen and Neal (2012) pointed out that 
typically, budgets are based on monthly average spending patterns and income is 
compared to outflow. They noted that housing expenditures (including utilities) take 
away the largest share of household budgets and other large expenses include 
transportation (car payments and gasoline, maintenance), loan debt payment, food and 
credit payment.  
Muske and Winter (2010) have also explained budgeting as a regular, systematic 
balancing of income and expenses. It is a personal system for making sure there is 
enough money to cover the essentials and a few extras.  
Muske and Winter (2010) advised that in making a spending plan one needs to know how 
much money one has and what it should be used for. They proposed the following steps 
to guide in the making of spending plan or budget: - 
i. Clearly define and recognize one’s goals; list some of the things needed by 
the family and have a good idea of the real cost of items. 
ii. Analyse all kinds of available income and know exactly how much money 
there is. 
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iii. Make a list of all the family expenses for the month and estimate how 
much money will be needed for each item. The amounts can be estimated 
by looking at old bills, receipts or cancelled cheques. Then keep track of 
everything you spend for the family for several months. This will help 
determine what your expenses will probably be in the future. 
iv. Synchronize the plans for shorter periods with the plans for the longer 
periods. 
v. Choose a method of handling money that will satisfy all family members. 
vi. Use the planned budget and keep records of all expenses. 
vii. Evaluate the spending plan after some time to make adjustments or 
changes if necessary. For instance, one should reduce expenses or generate 
additional income. 
 
2.8.9 Importance of Financial Planning or Budgeting 
Osteen and Neal (2012) stipulated that financial planning makes it possible for 
individuals and families to live within their means save money for short-term and long-
term goals as well as reduce financial worries and stress in the household. Pine (2009) 
advocated that a spending plan will help families: - 
i. Get more from the family’s money. 
ii. Meet the family’s needs for daily living. 
iii. Provide for the family’s future. 
iv. Keep the family out of debt. 
v. Meet emergencies. 
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vi. Provide a way of training children in the use of money. 
2.9 Consumer Spending 
2.9.1 Explanation of Consumer Spending 
Lowe et al. (2007) stated that consumer spending has to do with decisions to obtain and 
use goods and services but these decisions can have a far greater negative impact on 
one’s financial future because many of them are unconsciously made. Morgan (2003) 
advised that educating, motivating and empowering one to become regular savers and 
investors will enable one to keep more of the money one earns and do more with the 
money one keeps. Black and Hang’s (2004) study on consumer capability and life cycle 
approach revealed that consumption does not depend merely on the presently available 
income, but also the income expectations in their later phases of the life cycle. The study 
drew on the idea of typical income development: minimum income at the beginning and 
end of the life cycle and maximum income in the middle. It also assumed that the 
consumption expenditure level remains quite stable, although increasing slightly when 
young consumers have to take credit because their consumption expenditure easily 
exceeds the available income. In the middle of the life cycle, people repay their loans and 
save and make investments for old age.  
 
2.9.2 Spending Practices 
Patil (2012) described spending practices as the decisions and actions that individuals and 
families take concerning the use of money. It includes decisions about what money is 
spent on, how much is spent, the order and sequence of spending, set time for spending, 
and the satisfaction derived from the use of money. Patil (2012) again explained that in 
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every spending situation, the money may have been well-spent or ill-spent and this is 
determined by the satisfaction derived from the use of money. Prokerela (2013) cautioned 
that spending practices vary from one individual or family to another, and by countries 
and regions of the country. Some families seem to get much more than others out of the 
same amount of money possibly because they employ good spending practices. Hilgert, 
Hogarth and Beverly (2003) stated that financial knowledge is associated with financial 
practices like cash flow management, credit management, savings and investment. 
Findings by Ba-ama et al. (2013) revealed a significant relationship between knowledge 
in financial management and spending practices. 
 
A survey by Cambell (2006), on the effect of financial education on household spending 
behaviour revealed that except for homeownership and mortgage counselling, the bulk of 
financial literacy is relatively new. The relative newness of their financial literacy 
programmes also means that there are not many studies conducted. His ultimate interest 
was in household spending behaviour and the potential effect of financial education on 
that behaviour. To understand the link between household financial decisions and 
financial literacy, one needs an understanding of the financial mistakes households make 
as well as the connection between financial knowledge and behaviour (Cambell, 2006). 
Among the findings, it was realised that some households made mistakes with personal 
finance decisions. Mistakes were common for low income and less educated households; 
there was a causal connection between increases in financial knowledge and financial 
behaviour and the benefits of financial education appeared to span a number of areas 
including retirement planning, savings, homeownership and credit use. 
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Similar findings by Social Research Report (2010) on financial literacy in Romania 
revealed that the level of financial literacy was a significant determinant of the level of 
financial capability in all four domains – money management, provisioning for the future, 
making financial choices and staying informed about financial matters in which financial 
capability could be observed and measured. Consequently, the low level of financial 
literacy of the general population translated in the fact that in Romania, most of the 
population: - 
i. Struggled to keep up with their financial commitments and make little use of 
financial products either to finance deficit or to manage spare money. 
ii. Was passive in defending their rights in relation to the financial institutions. 
iii. Was unprepared for the unexpected. 
Increasing financial literacy is therefore a prerequisite of improvement of population 
capability to organize their money in a more appropriate way and to make adequate 
financial provision for the future. Kempson et al. (2005) explained that financial literacy 
describes the knowledge and understanding of financial issues of a population and refers 
to the ability to make informed judgment and take effective decisions regarding the use 
and management of money.  
Financially capable people can make informed financial decisions.  
They are numerate and can budget and manage money effectively.  
They understand how to manage credit and debt and can assess needs for insurance and 
protection.  
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They can assess the different risks and returns involved in different savings and 
investments options.  
They have an understanding of the wider ethical, social, political and environmental 
dimensions of finances.  
 
2.9.3 Financial Education 
Financial education is the process by which financial consumers or investors improve 
their understanding of financial products and concepts and through information, 
instruction and/or objective advice develop the skills and confidence to become more 
aware of financial risks and opportunities, to make informed choices, to know where to 
go for help and to take other effective actions to improve their financial well-being 
(OECD, 2005). 
Financial capability is based on certain consumer demographic characteristics (gender, 
age, education, among others.) as well as personal (values, attitudes, habits, among 
others.) nature. The consumer’s phase of life and the immediate environment he/she lives 
in shapes his/her financial capability (OECD, 2005). Howard (2000) stipulated that when 
it comes to spending decisions women are in control because they control the majority of 
purchasing decisions in a household and their influence is growing. But advertising 
messages are seemingly irresistible, that millions of Americans, young and old, routinely 
take on expensive short-term credit card debt in addition to wasting 20 to 30 percent of 
their money because of poor spending habits and practices (Howard, 2000). He stressed 
that everyday spending decisions, especially credit-based ones will have a far more 
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negative impact on one’s financial future than any investment decision one may ever 
make. He cautioned that it is not just credit-based spending decisions that get people into 
trouble but cash slips through some people’s fingers so fast that at the end of the day, 
they have great difficulty determining just how all the money was spent. 
Muske and Winter’s (2010) study on spending practices of some American couples 
revealed that most of them did not manage their finances in textbook fashion. Very few 
couples followed traditional financial management practices. However, each couple had 
specific, formal and systematic money management practices that worked for them. A 
similar study by Chatzky (2003) showed that one does not have to be a millionaire to be 
happy. He found a strong relationship between feeling in control of one’s financial 
situation and feeling happy about finances. Based on his findings, Chatzky (2003) 
compiled some management strategies to help families feel in control of their finances. 
These include: - 
i. Get pretty organized. 
ii. Pay bills as they come in rather than all at once. 
iii. Keep tabs on cash. 
iv. Save at least 5% of household income. 
v. Minimize credit card debt. 
vi. Spend sensibly. 
Chatzky (2003) concluded that while financial educators and planners agree on standard 
methods of financial management, the reality is that few consumers are knowledgeable 
about these techniques or are willing to implement these strategies. 
 
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2.9.4 Deciding what to buy 
Lowe et al. (2007) stated that careful decision making about what to buy involves several 
well-defined steps. For major purchases, consumers should follow the following steps: - 
i. Define the issue or problem; 
ii. Identify relevant values and goals; 
iii. List possible choices; 
iv. Gather information; 
v. Evaluate the choices; 
vi. Make a decision and evaluate the results. 
2.9.5 Where to shop 
Lowe et al. (2007) also outlined places to shop to include traditional markets, retail stores 
such as department stores, discount department stores, variety stores, specialty stores, 
(grocery, gift shops, bookshops etc.), superstores, outlet stores, warehouse clubs and 
second-hand stores. They stressed that non-store options included door-to-door sales, 
mail-order retailing, electronic shopping, vending machines and consumer cooperatives 
and that retail stores differ in variety, personal services and pricing, making convenience 
a hallmark of most non-store retailers. Where one shops influence the budget because of 
price variations at the different shopping places. For example, food items cost less in 
traditional markets than at the grocery or from hawkers. Prices of household equipment 
and electrical gadgets are cheaper from the manufacturer or retail stores than in 
traditional markets. One could get some discount and/or warrantee from the manufacturer 
that could cut down on cost. Buying from hawkers and in traffic could be very expensive 
due to high-profit margins. 
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2.9.5 When to buy 
Lowe et al. (2007) further explained that advance planning enables consumers to take 
advantage of special sales and seasonal buying. Wise shoppers try to time their purchases 
to get the most for their money. In certain circumstances it may be wiser to put off a 
purchase, for example, one can reduce finance charges by saving and making a large 
down payment, or by saving and not buying on credit at all. Riley and Rudd (2007) also 
advised that waiting can allow one to take advantage of special price reductions that 
come with sales and buying in season. Reduction sales items are offered at a lower price 
than its usual selling price. These may offer shoppers opportunities to buy high-quality 
items at low prices since prices are lower on many goods at certain times of the year. The 
authors emphasized that some foods are available in large supplies, fresh and cheaper 
only when they are in season and as a result, one can save a lot by buying foods in season 
and/or take advantage of clearance sales which also offer the opportunity to buy. Personal 
experience and observations show that in Ghana prices of food items are much cheaper 
when they are in season hence many homemakers take advantage to buy in bulk and 
store. During festive seasons such as Christmas and Easter, many shops offer price 
reduction sales and this allows shoppers to buy high-quality items at low prices. 
 
2.10 Factors that Influence Spending Decisions 
Spending decisions are influenced by several factors such as occupation, level of income, 
the size of the household, changing social patterns, among others. Many personal 
characteristics and circumstances also influence the way people spend their money. 
Ambition, values, likes and dislikes abilities, wealth, number of family members, gender, 
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standards of living, socioeconomic status and future plans and developments will affect 
the way people spend money (Kirchler et al., (2008). 
 
2.10.1 Economic factors 
Kirchler et al., (2008) stated that economic factors such as the price of the item and the 
amount one has to spend influence one’s spending. However, other factors: – personal, 
social and business form part of the decision as well. They proposed that if one has to 
spend money wisely, one must learn what these factors are and when and how they 
should affect one’s decision making. Economic factors such as the price of the item 
determine spending decisions like the quality and quantity of items to purchase where 
and when to purchase items as well as the satisfaction or dissatisfaction derived from 
spending. The amount one has to spend also influences what items, the quality and 
quantity one can pay for. 
 
2.10.2 Personal factors 
Kirchler et al., (2008) identified personal factors as those that are derived from one’s 
background, family circumstances and upbringing such as: 
i. Values: which influence spending in that if a family values education above 
material possessions, it is likely to give higher priority to school tuition than to 
home furnishings or a second car (Kirchler et al., 2008). 
ii. Goals: which reflect what individuals and families need out of life. These needs 
fall in line with Maslow’s (1948) human needs theory. For example, money may 
be used to secure items needed to meet a person’s physiological needs for food, 
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clothing and shelter. Savings and investment will go far to meet security needs. 
To spend on these needs, one must decide how to earn the money.  
iii. Lifestyle: a way of life of a person also affects one’s buying decisions. Being 
single, newly married, married with children and retirement, for example, life 
stages that tend to have similar concerns and confront similar economic decisions 
(Kirchler et al., 2008). 
iv. Habit: Many consumer purchases are made based on habit (a tendency to follow 
a fixed pattern of behaviour). People get into the habit of buying a certain product, 
shopping at a certain store or shop or eating at a certain restaurant. Habit is not 
necessarily a poor basis for decision making used for minor or routine purchases, 
for example, it can simplify one’s life. Followed blindly however it can keep one 
from comparing and considering other possibilities some of which may be better 
(Kirchler et al., 2008). 
v. Impulse purchase which is unplanned or spur-of-the-moment buy. Merchants 
encourage impulse purchase by using such techniques as the positioning of 
displays near the checkout counter. Impulse purchase can have its benefits such as 
finding an item one needs on sale. It often results, however, in the purchase of 
unnecessary products and can destroy the best-laid spending plans (Kirchler et al., 
2008). 
vi. Personal resource such as money available influences one’s spending. But if one 
has more time and energy (and the necessary skills) one can substitute one’s 
labour with money (Kirchler et al., 2008). 
 
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2.10.3 Social factors 
Social factors such as family members can affect one's decisions to spend but so can 
other people such as friends, neighbours or even beggars on the street, a stranger in the 
supermarket queue can recommend a product. When one allows the reactions of others to 
determine one’s choices, one is allowing social factors to influence one’s decision 
making (Kirchler et al., 2008). In relation to Maslow’s (1948) social and belongingness 
needs, some people may use money on friends and relations as well as for other 
opportunities for social interactions which could facilitate one’s social needs. 
Kirchler et al., (2008) stated that popular taste probably influences consumer choices 
more than any factor other than price. They again emphasized that keeping up with 
fashion blindly, for example, can result in a waste of money since what is in fashion 
today may be out of fashion tomorrow and clothing may be discarded, even though they 
show no sign of wear simply because it is outdated. 
Social Status: the more money a person has available to spend, the more likely he/she is 
to buy luxury goods such as expensive clothing, jewellery and cars. Some people buy 
luxury goods to impress others with their apparent wealth and success. This practice is 
called conspicuous consumption (Kirchler et al., 2008). Maslow’s (1948) level of needs 
indicates that a higher-order or self-esteem needs will be met through the purchase of 
expensive or designer clothing, flashy cars and other items that will attract recognition. 
Money may also contribute to a sense of self-actualisation.  
 
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2.10.4 Business factors 
The devices used by businesses to sell goods and services are probably the most familiar 
influences on consumer spending. Some of these include advertising, sales tactics, sales 
promotions and shopping environment (Kirchler et al., 2008). 
i. Advertising can provide helpful information about a product’s features, use and 
price, but it can also confuse or mislead the consumer. Some advertisements can 
lure people to make purchasing decisions. 
ii. Sales promotions are sales activities such as free samples, coupons and sales 
contacts. Sales promotions stimulate consumers’ spending decisions to purchase 
items unplanned for. Even though the prices of these items may be reduced, 
buying them at an unplanned time could draw more on the family budget. 
iii. Shopping environment or surroundings can also influence purchasing. For 
example, supermarkets, department stores and shopping malls all present a 
staggering array of choices. This variety makes it more likely that the consumer 
will find whatever he or she wants, but it can also confuse or overwhelm him. In 
addition, it can create a desire for all sorts of items that are beyond a shopper’s 
means and needs. 
Similarly, Howard (2000) has also stipulated that a wide variety of factors, ranging from 
age, gender, family size, occupation, religion, status, future expectations, advertising and 
personal influences, and compulsiveness, have been shown to influence consumer taste 
and demand. 
 
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2.11 Family Spending Methods 
Osteen and Neal (2012) outlined some methods of family spending to include: - 
i. The family financial plan is a method of using money as a planned and shared 
family project. This means all members of the family are involved in the decisions 
concerning what money is spent on, how much is spent and when the money is 
used. She explained that this practice is uncommon in Africa but is used mainly in 
the western world. 
ii. The allowance method in which a household head gives a stipulated amount to 
the wife to cover living expenses and keeps the rest of the money to meet other 
demands like rent, utility and other family bills himself. According to Hevi-Yeboe 
et al. (2004), this method is commonly used by some husbands in Ghana, but the 
money given to the women most often is for food only. Usually, the woman adds 
her own money to cover other family needs such as soap, other cleaning 
materials, personal needs like pomade, powder, children’s clothes and 
transportation. For example, in the Ho District of the Volta Region of Ghana, 
rural men give some money to their wives every market day for the purchase of 
fish, salt and other minor ingredients. Most of the food items are obtained from 
the farms and the woman takes care of other needs except clothing which the man 
provides for family members once or twice in a year. 
iii. The handout method in which a household head gives money out on daily basis 
or wherever the need arises. Hevi-Yeboe et al. (2004) found out that, this method 
is also common in Ghana is used by men who like to control their money. The 
implications, however, is that this method could create problems when the need 
arises and the man is absent. Some women could also get tired of asking for 
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money all the time and this could lead to tension in the family. The method also 
makes it difficult for homemakers to buy items in bulk even though bulk-
purchasing saves the family some money, time and energy. 
iv. The “equal salary method” and the “fifty-fifty system” in which both the 
husband and wife contribute equal amounts of money at the end of the month and 
this is put together and used for the family upkeep (Osteen and Neal, 2012). 
v. The envelope method is a cash system that lets each family member see how 
much money is available in each envelope or budget category. The College 
Foundation Factsheet Report (2004-2008) reported that some families take their 
income and immediately divide it into envelops for rent, food, clothing etc. so that 
they know just how much is left. A disadvantage of this system however is that it 
requires keeping large amounts of cash at home, which may cause a security 
problem. 
vi. The cheque book method is an accurate record-keeping method in which 
expenses are paid by cheque and recorded immediately and balance is kept up to 
date (Osteen and Neal, 2012). 
vii. The account method is a method preferred by those who choose to keep a 
detailed daily record of spending. Usually, the record-keeping task is assigned to 
one family member, but all family members should understand the system and 
help keep receipts (Osteen and Neal, 2012). 
viii. The receipt method requires family members to save receipts from all purchases. 
A container or box should be placed where it is easily accessible to all members 
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of the household. Receipts are totalled regularly, usually every month, to know 
the trend of spending (Osteen and Neal, 2012). 
 
2.12 Family Expenditure 
The Ghana Living Costs and Food Survey Report (Ghana Statistical Service, 2011) 
defines expenditure as the combination of qualities, quantities, acts and tendencies 
characterizing a community or human group’s use of resources for survival, comfort and 
enjoyment. Expenditure simply put, refers to what individuals and families spend their 
money on and the amount of money spent on each item. McGraw-Hill (2001) reported 
that all expenditures proforma represent a choice among alternatives since choices open 
to the spender are not made. McGraw-Hill (2001) again explained that scarcity of 
resources makes it necessary to sacrifice some things desired to obtain those for which 
the desire is greater. In a real sense, there is a great deal of planning and re-planning of 
expenditures. There is what one might call partial planning of the expenditure of part of 
the income, possibly over a short period only or possibly in a rough fashion over a 
relatively long one. Such a plan could rarely be made or kept in one’s head but must be 
on paper (McGraw-Hill, 2001). In that form, it constitutes what is usually called a budget 
and the planning becomes budgeting. Although few families or individuals may report 
that they budget their incomes, many would say at the same time that they plan their 
expenditures. 
The Ghana Living Costs and Food Survey Report (Ghana Statistical Service, 2011) 
revealed that major items on which expenditure was made by families included food, 
clothing, housing, education, household utilities, health care, transportation, 
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communication and remittances. The GLSS6 (Ghana Statistical Service 2014) 
categorized household expenditure according to the UN Statistical Classification System 
called “Classification of Individual Consumption According to Purpose” (COICOP, 
2009). This categorisation mainly divided expenditure into food and non-food 
components. The non-food components comprised expenditure on alcoholic beverages, 
tobacco and narcotics, clothing and footwear, housing, water, electricity, gas and other 
utilities including health, education, recreation, personal care and durable goods. 
 
2.12.1 Food Expenditure  
The Ghana Living Costs and Food Survey Report (Ghana Statistical Service, 2011) 
indicated that food expenditure covered two types of imputation, firstly the domestic 
consumption of own input by households engaged in agricultural production and 
secondly the value of any wage income received by household members in the form of 
food. 
The Ghana Statistical Service Report (2012) identified the most important food 
consumption subgroups in Ghana in terms of cash expenditure as roots and tubers (22%), 
fish (16%), cereals and cereal products (15%), vegetables (9%), and meat (5%). Prepared 
meals accounted for 11% by value of total food consumption. It was noted that rural folks 
consumed more root and tubers, pulses and nuts than their counterparts in the urban 
areas. In contrast, meat and prepared meals were consumed more in the urban areas than 
in the rural areas; urban residents also spent more on cereals and cereal products and 
poultry and poultry products than their rural counterparts. 
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The report, however, revealed that American households, on the other hand, spent about 
14% of their budget on food items. This included grocery store food, food from vending 
machines, in restaurants and special catered affairs. Studies by Udry and Woo (2006) on 
household and social organisation of consumption in Southern Ghana revealed that in the 
YiloKrobo district, expenditure patterns showed that food constituted the highest 
household expenditure. It constituted 39% of total household expenditure.  
Findings from Ba-ama et al. (2013) indicated that average monthly household 
expenditure on food was GH¢ 218.85 for the formal sector women and GH¢ 115.40 for 
the informal sector women at Dodowa. The GLSS6 (Ghana Statistical Service, 2014) 
reported that the household mean annual per capita expenditure on food accounts for the 
largest share (46.7%) of the total annual household expenditure of GH¢61.507 million. 
Findings from Babatunde (2010) on expenditure patterns of Ghanaian families in the 
formal and informal sector at Tabora revealed that expenditure on food took 45% of total 
income with the formal sector families spending a little more on protein-rich foods as 
compared to the informal sector families who spent more on carbohydrate-rich foods. 
Among the food items purchased, animal foods consisting of meat and fish took the 
highest allocation of cash expenditure on food. This was followed by expenditure on 
cereals and cereal products, then roots, tubers and plantain, vegetables and fruits, fats and 
oils and the beans, nuts and oilseeds. 
 
2.12.2 Housing Expenditure 
The Population and Housing Census Report (Ghana Statistical Service, 2012) defined 
housing as being more than the provision of shelter, to include utilities, household 
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furnishings, household operations, domestic service and other housekeeping expenses. 
The report revealed that homeownership was high in the urban areas, with the highest 
figure of 60% in Greater Accra. Consequently, renters were more prevalent in Accra 
(57%) and other urban areas (50%). Most rural households (81%) had free housing or had 
their accommodation paid for by someone else. Findings from Ba-ama et al. (2013) 
revealed that average monthly expenditure on rent was higher for the formal sector 
women (GH¢ 22.23) than for the informal sector women (GH¢ 4.35). Similar findings by 
Babatunde (2010) confirmed that formal sector women paid more monthly rent of GH¢ 
38.00 than the informal sector women (GH¢ 5.00). The GLSS6 Report (Ghana Statistical 
Service, 2014) reported that households’ total expenditure on housing accounted for 
12.4% of total expenditure. 
 
2.12.3 Health Care Expenditure 
The US Department of Commerce, Bureau of Census (2004) revealed that health care 
expenditures vary considerably by age. US households spent on the average five to six 
percent of their after-tax income on health care. Householders under 25 years spent less 
on health care. As the age of householders rises, so does the amount of budget devoted to 
health insurance, drugs, medical supplies and services such as doctor’s visits, lab tests, 
among others. Householders aged 65 plus devoted an average of 12% of their budget to 
health care. The GLSS6 (Ghana Statistical Service, 2014) reported that the average 
medical expenses by people who reported ill or injured was GH¢ 50.50. Total 
expenditure on medical care was much higher in urban areas especially in Accra (GH¢ 
71.50) than in the rural areas. Information on financiers of medical bills including the 
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cost of consultations and hospital admissions revealed that the expenditures were borne 
mainly by household members (89.6%). Only about 6.4% settled their bills through 
health insurance, while less than five percent settled through employers or governmental 
support. The report also stated that the average woman spent GH¢ 5.00 on contraceptives. 
A little over a fifth (22.4%) of all contraceptive users did not pay anything for their 
contraceptives and about 55% paid less than GH¢ 5.00. Only about3 % paid GH¢ 5.00 or 
more and these were in Accra and other urban areas. 
Findings by Ba-ama et al. (2013) indicated that formal sector women paid an average 
monthly expenditure of GH¢ 55.63 on healthcare as compared to the informal sector 
women who paid GH¢ 15.45. Similar findings from Babatunde (2010) showed that 
formal sector women (51%) paid more (GH¢ 51.00 – 100.00) than the informal sector 
women (GH¢ 50.00) on health care. Expenditure on health comprised money spent on 
consultations, drugs or medications, laboratory tests, x-rays, antenatal and post-natal care 
and hospital bills. 
 
2.12.4 Remittances 
This refers to income transfers to and from households. According to GLSS 6 (Ghana 
Statistical Service, 2014), an income transfer to non-household members was highest for 
children in both rural and urban localities. A higher proportion of transfer payments 
received by households went to children both in the urban and rural localities especially 
female children (45.7%) compared to male children (33.2%), while spouses were the 
lowest beneficiaries of transfer payments received by households. The population and 
housing census report (2012) showed that bulk remittances to non-household members 
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went to relatives, (93%) and in particular to parents or children in tertiary institutions or 
living outside the town (50%), brothers and sisters (18%) and other relatives (23%). Such 
income flows from the household benefited females (64%) more than males (36%). 
 
2.12.5 Educational Expenditure 
The GLSS 5 (Ghana Statistical Service, 2014) reported that the average annual cost to a 
household for maintaining a person at school or college was GH₵ 16,350 per year. The 
report indicated that households, on average spent about GH₵ 8,865 annually per 
household member attending school or college. The annual amount spent was much 
higher in Accra (GH₵ 28, 861) than in either other urban (GH₵ 11,202) or rural areas 
where the average expenses were far less than the national average. Across localities, 
rural Savannah had the lowest average educational expenses per household member 
(GH₵ 2,125). Major items on educational expenditure included food, boarding and 
lodging accounting for (40.7%), school and registration fees (28.8%), books and school 
supplies (9.6%), transportation to and from school (7.2%), expenses on extra classes 
(6.4%) and uniform and sports cloths (5.7%). Educational expenses formed (8.9%) of 
total household expenditure. However, educational expenses in urban areas were more 
expensive than in rural areas. Findings by Yankey (2006) in the Central Region of Ghana 
revealed that expenditure on school fees ranged between GH₵ 20.00 to over GH₵ 300.00 
for a school term. More than half (56.8%) of the respondents spent between GH₵ 200.00 
and GH₵ 500.00 on school uniform and stationery and between GH₵ 400.00 and GH₵ 
4,000.00 on pocket money in a school term. 
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Similar findings by Babatunde (2010), revealed that formal sector homemakers spent 
more on education (GH₵ 101.00 - GH₵ 400.00) than those in the informal sector (GH₵ 
50.00 - GH₵ 100.00). Educational expenditure covered those in public basic, secondary 
and tertiary education. Findings by Ba-ama et al., (2013) showed that expenditure on 
education was the highest among both formal and informal sector women. While the 
informal sector women paid GH₵ 143.00, the formal sector paid GH₵ 854.00 on 
education. These findings suggest that educational expenditure increased as the years go 
by. 
 
2.12.6 Household Utilities Expenditure 
Ghana Living Standard Survey round 5 (2004) reported that the next most important 
household expenditure group in terms of amount spent was household utilities (water, 
electricity and gas) (7.9%). Expenditure on housing, water, electricity and gas contributed 
9.5% to the total expenditure on non-food component. However, urban areas spend more 
on utilities (11.3%) than rural areas (6.9%). Yankey’s (2006) study revealed that 54% of 
the respondents paid up to GH₵ 50.00 for water, GH₵ 10.00 to GH₵ 20.00 for electricity 
and GH₵ 10.00 - GH₵ 20.00 on telephone. Findings from Babatunde (2010), showed 
that monthly expenditure on household fuel ranged between GH₵ 10.00 - GH₵ 40.00 
while that for electricity ranged between GH₵ 15.00 - GH₵ 50.00+. Expenditure on 
water ranged between GH₵ 5.00 - GH₵ 20.00+ and this included water bills as well as 
water bought from tankers. Ba-ama et al., (2013) found that expenditure on electricity, 
water and fuel was higher (GH₵ 183.89) for formal sector women than for informal 
sector women (GH₵ 46.40). 
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2.12.7 Transportation Expenditure 
Findings from the Second National Household Transport Survey Data (2012) shows that 
transportation accounts for around 15% - 20% of household expenditure which is higher 
than the estimate from consumption surveys. Moreover, travel surveys indicate that poor 
households spend a greater share of their income on transport than others. The data 
reported that in Ouagadougou, transport accounts for 25% of income for the household. 
The survey report also revealed that about two-fifth (41.5%) of resident in Ghana spent 
between GH₵ 100.00 and GH₵ 200.00 on taxi rides. Findings by Giles (2011) reported 
that the proportion of total expenditure spent on transport increased slightly with 
increased income, from 10% for the lowest decide group to 16% in the highest income 
group. The report showed that transport was the expenditure category which consistently 
had the highest average weekly spend throughout the times. For example, in the United 
Kingdom, spending on transport increased from £61.00 per week in 2009 to £64.90 per 
week in 2010. 
Babatunde’s (2010) study revealed that the majority of homemakers from both formal 
(84%) and informal (80%) sectors spent between GH₵ 30.00 - GH₵ 65.00 a month on 
public transport such as “trotro” taxi and buses. However, about 12% of the women 
studied who lived their own cars spent between GH₵ 150.00 - GH₵ 300.00 a month. 
This included the cost of fuel, vehicle maintenance, and insurance premium and some 
cakes, repayment of car loans. 
2.12.8 Recreation 
Giles (2011) reported that the next highest expenditure to transportation was on 
recreation and culture which had a highest weekly spending of £70.00 in 2004/2005 but 
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steadily declining to its lowest amount £58.10 in 2010. Recreation accounted for between 
12 and 14 proceed of overall spending throughout the time series. Expenditure on 
restaurants and hotel was its highest value of £42.90 per week in 2004/2005 and its 
lowest was £59.20 in 2010. However, recreational expenses of the women studied by Ba-
ama et al., (2013) in the formal sector were GH₵ 324.00 while the informal sector 
women spent only GH₵ 43.30. This information suggests that recreation is not one of the 
prioritized expenditure categories. 
  
 
2.12.9 Clothing and Footwear 
Clothing Materials expenses were reported at GH₵ 2,895.00 million in 2013. This 
recorded an increase from the previous amount of GH₵ 604.00 for 2006. Among the 
twelve COICOP headings. Household Expenditure Based on COICOP Classification. 
Babatunde (2010) revealed that expenditure on clothing & footwear included items such 
as shirts, trousers, dresses, “Kaba and Slit”, head ties and accessories. The study revealed 
that average monthly expenditure on clothing ranged between GH₵ 5.00 and GH₵ 35.00, 
of income ranged between 3% - 6% of the monthly income. It also revealed that 
respondents in the formal sector spent more on clothing than their counterparts in the 
informal sector. 
 
2.12.10 Communication 
According to Babatunde’s findings (2010), the most common means of communication 
was mobile phones. A few women (12%) from both formal and informal sectors had 
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landlines connected to their homes. A slightly more than half (54%) of the formal sector 
women used internet for communication. Expenditure on communication ranged between 
GH₵ 3.00 - GH₵ 10.00 mainly on phone units. A few, however, spent more than GH₵ 
10.00 on their communication gadgets.  
 
 2.13 Consumer Credit 
2.13.1 History of Credit 
Stone (2005) reported that the word credit was derived from the Latin word “credere” 
which means “belief or trust”. Thus, trust in one’s ability to meet payments when they are 
due. He explained that credit is the provision of resources by one party to another in 
which the second party does not pay back immediately, so debt is generated and 
arrangements are made to repay at a later date. The first party is called a creditor or 
lender while the second party is called a debtor or borrower. The debtor, according to 
him, promises to repay, not only the principal sum borrowed or cost of the goods 
purchased but also interest. Thus, the lender or creditor holds a claim that the debtor will 
repay the interest and principal as promised. He emphasized that credit is dependent on 
reputation or creditworthiness. Stone (2005) further explained that credit has been an old 
financial purchasing method but it was not until the early forties that it became a means 
of payment available to everyday consumers. Three main kinds of credit were identified 
by Finlay (2009) namely: business or trade credit, home mortgages and consumer credit. 
For this study, only consumer credit will be reviewed. 
 
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2.13.2 Consumer Credit Explained 
Finlay (2009) defined consumer credit as a financial resource that enables the transfer of 
money, goods and services to individuals for personal, family or household use for which 
payments are made in the future. Free Dictionary (2017) explained consumer credit as 
service granted to a consumer permitting the use or ownership of goods or services 
during a term of payment. The legal definition of consumer credit includes short term 
loans to individuals for the purchase of goods used primarily for personal, family or 
household purposes. Such goods however are not intended for resale or further use in the 
production of other products (http://www.lectlaw.com/def/c112.htm, June, 2017). 
Goldsmith (2005) explained that consumer credit is considered as “elastic income” 
because its use expands the purchasing power of individuals at any given time and so 
makes possible the provision of more goods and services than cash on hand would allow. 
Finlay (2009) stipulated that consumer credit use has been in existence for decades. 
However, in those times, many people emphasized the importance of living within their 
means and frowned upon the use of credit. In the present decade, consumer credit has 
been so widely used that almost every family owes somebody (Finlay, 2009). 
 
2.13.3 Types of Consumer Credit 
Consumer credit has been divided into three broad categories by (Hartaska & Gonzalez-
Vega, 2006) namely: 
i. Instalment credit or closed-end credit; 
ii. Non-instalment credit or open-end credit; 
iii. Revolving open-end credit. 
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i. Installment credit or closed-end credit 
This type of credit involves transactions that require repayment on a specified date 
of the entire amount borrowed or cost of items bought (fixed-payment loans). It is a 
loan that requires the borrower to repay the principal amount in equal periodic 
payments, usually on monthly basis and it is a popular method of financing other 
high-end appliances and electronics. The lender, however, will ordinarily retain the 
ownership to the property (if one exists) until the loan is paid completely. These 
fixed-payment loans typically provide the borrower with very little repayment 
flexibility. Single-payment loans require the repayment of the entire amount that was 
borrowed plus the interest (Hartaska & Gonzalez-Vega, 2006). 
 
ii. Non-installment credit or open-end credit 
This is the simplest form of credit, usually given for very short term (such as thirty 
days). It enables consumers to take possession of goods and pay for them within a 
short term. It is offered by department stores to their regular customers. It includes 
all forms of consumer credit except fixed payment loans and comprises of single-
payment loans, loans that permit the borrower to make irregular payments, loans that 
permit the borrower to borrow additional funds without submitting a new credit 
application (Hartaska & Gonzalez-Vega, 2006). 
 
iii. Revolving open-end credit 
Revolving open-end credit involves the use of most credit cards. Under an agreement 
with the lender or seller, credit is extended for use by the consumer. An outside limit 
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is established, depending upon the debtor’s credit history and ability to handle the 
debt repayment. The consumer or debtor is given a credit limit and he/she chooses 
how much of the available credit he/she will use at any given time. Usually, the 
debtor makes periodic (usually monthly) payment and continues to use the available 
credit as needed as long as each periodic payment meets pre-determined minimum 
amounts (Hartaska & Gonzalez-Vega, 2006). 
 
Schlater, (2007) also classified consumer credit into service credit, sales credit, point-of-
sale-credit and consumer loans. 
i.Service Credit 
This covers payment for services obtained from the use of household utilities such 
as water, electricity, rent and telephone for which bills are sent monthly or 
quarterly. It could be used to cover other services such as school fees, hospital 
bills, and rent, among others (Schlater, 2007). 
ii.Sales Credit 
This is a credit facility made available for obtaining consumer goods from stores, 
traders and other sellers. Forms of sales credit include: 
 
- Installment credit, which is credit repaid by the borrower in several 
periodic payments as agreed upon by both creditor and debtor. It is used 
for a wide range of goods such as food items, clothing, household items, 
and furniture, among others.  
 
- Revolving credit, which allows customers to buy goods and pay a certain 
amount on their account each time and are allowed to buy more goods on 
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credit in addition as long as they make regular payments. It is used for 
purchasing toiletries and provisions (Schlater, 2007). 
 
- Hire Purchase is used to purchase very expensive items such as cars, 
building materials, television sets, refrigerators among others, where the 
customer pays a deposit usually one-third of the price and the rest of the 
cost plus the interest is spread over a period of time. Even though the 
buyer can use the item bought, the seller retains title to the property until 
full payment has been made. 
 
- Point-of-sale-credit is a purchase transaction with a retailer with a credit 
card instead of cash (Schlater, 2007). 
 
 
iii.Cash Loan or Consumer Loans 
This is money obtained from both formal and informal sources for goods used 
primarily for personal, family or household purposes. Formal financial institutions 
include the banks, trust companies, small loan companies, life insurance policy 
loans, credit unions among others. Informal sources of consumer loans include 
friends, family members, money leaders, susu groups, welfare societies among 
others. Cash loans may be paid for all at once at a pre-agreed date, or by 
installments spread over a period of time. The amount of interest paid depends on 
the amount of the loan received, the length of repayment time and the source of 
the loan. 
 
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2.13.4 Factors that Influence Consumer Credit Use 
Several factors influence consumer credit use. Stone (2005) outlined four main factors 
including convenience, immediacy, to bridge the gap and inflation of goods and services.  
i. Convenience 
He explained that it is very easy to use a credit card instead of carrying physical cash and 
to be able to settle bills with the use of a cheque. Once the outstanding amount is paid 
monthly, it is an interest-free convenience. Some charge accounts require that the total 
bill be paid monthly, but others such as bank credit cards and retail revolving accounts, 
offer a choice of paying all or a portion of the debt. Stone (2005) pointed out that using a 
credit card instead of cash makes shopping more convenient and reduces the risk of loss 
or theft associated with carrying large amounts of cash. Stone (2005) again cautioned that 
a disadvantage about this option is that it makes it easy to let bills accumulate and the 
interest rates charged on unpaid balances become high (Stone, 2005). 
 
ii. Immediacy 
 
Consumer credit allows consumers to obtain goods and services now and pay later. This 
is a good way of selling high-priced goods and services since buyers do not have to 
consider the affordability of the cost price, but the ability to manage the monthly 
payments. Sometimes, the opportunity to have goods or services immediately can be 
worth the cost (Stone, 2005). For example, when one takes into account the cost of being 
without household equipment such as a refrigerator, one may discover the monetary 
benefits of using consumer credit. Consumer credit may help one take advantage of sales 
or bargain opportunities. It also gives the consumer the immediate use of goods and 
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services when he or she is short of cash. Some people have difficulties saving enough to 
acquire expensive items, so the only way out is to fall on consumer credit which 
somehow becomes a form of forced saving, although an expensive one due to the interest 
charged (Stone, 2005).  
 
iii. To bridge the Gap 
 
Stone (2005) explained that people with irregular income, such as many self-employed 
may require loans to pay regular expenses until the next income. Until a sufficient reserve 
fund is built up, it may be necessary to obtain a loan to bridge this gap. Even with a 
regular income, there may be occasions when there may not be enough cash to cover 
some expenses. Sometimes when bills and debts exceed income some people borrow 
enough to repay all the outstanding debts and then owe a large amount to one lender for a 
longer time through a consolidation loan. Such loan is one way of reducing the financial 
pressure but it could make a person be continually in debt. 
 
iv. Inflation 
 
During inflationary periods, borrowers tend to benefit at the expense of lenders. As prices 
of goods and services rise and incomes increase proportionally, borrowers pay back loans 
that have fixed payments (Stone, 2005). This makes it comparatively easy to handle debt. 
The lender, on the other hand, is paid back amounts that would buy less than when they 
were lent. Another aspect of very rapid inflation is the advantage of making purchases 
before the prices go up more. Under these conditions, it may be quite rational to use 
credit rather than accumulate savings. Studies by Black and Hong (2004) on the effects of 
life-cycle stages on consumer debts revealed that life-cycle stages, willingness and ability 
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to borrow and the need to borrow were significant factors affecting installment debt and 
credit card debt. Chien and De Vaney (2001) also found that a favourable attitude toward 
credit was positively related to having installment debt. 
 
2.13.5  Functions of consumer credit 
Consumer credit plays some functions in family living. Goldsmith (2005) explained that 
the use of consumer credit expands the purchasing power of families at any given time 
and thus makes possible the provision of more goods or services than cash on hand would 
allow, and for this reason, it is considered “elastic income”. Hence, the function of 
consumer credit is to provide an opportunity to alter the timing of resource use. 
Consumer credit adds flexibility to financial management and a sense of security to some 
families. It is a part of the family’s income and can be of great help in financial 
management if it is used wisely. Similarly, Lowe et al., (2007) stipulated that since most 
families cannot purchase costly items with cash, their large purchases require credit. 
Thus, consumer credit plays an important role in stimulating economic activity over the 
short run.  
 
2.13.6 Consumer Credit Use 
According to Pine (2009), management of consumer credit is one of the biggest 
management challenges faced by individuals and families. From a financial point of 
view, one of the challenges is that interest on credit repayments is usually higher than 
what individuals make on their investments. Schlater (2007) stressed that the increase or 
decrease in the quality of living that consumer credit will give depends on the 
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effectiveness of credit management. Although most people consider consumer credit a 
method to secure goods and services that cannot be afforded, it is true that practically 
everyone in modern society uses credit in one form or another. For instance, service 
credit allows all consumers to access household utilities such as electricity, water, 
telephone as well as medical and other domestic services for which payments are made in 
the future. 
Stone (2005) argued that consumer credit use has changed over time, complicating the 
consumer finance picture. Consumers now use credit as a substitute for cash and in some 
cases, as a convenient way to accumulate wealth. Finlay (2009) blamed the widespread 
increase in the use of consumer credit in recent years on families losing interest in 
budgeting. In addition, where consumers once had to save up hard cash to make a large 
purchase, they now find merchants and dealers vying to offer a bewildering array of 
credit plans. Ahmed (2009) also attributed the increased use of consumer credit by 
Ghanaian families to the high cost of living, unemployment, low salaries, the impact of 
advertisements and increased availability of credit facilities.  
Similar findings by Ba-ama et al. (2013) and Yankey (2006) showed that the women 
studied accessed cash loans and installment credit to maintain their families because 
housekeeping monies were insufficient. On the contrary, a study by Hayhoe et al. (2000) 
on differences in spending habits and credit use of college students in the U.S.A revealed 
that affective attitude (feeling about credit card) and gender influenced credit purchases. 
Affective attitude predicted the purchase of clothing, electronics, entertainment, travel, 
and food away from home. Females purchased clothing while males purchased 
electronics, entertainment and food away from home. 
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2.13.7 Consumer Credit Challenges 
Lowe et al. (2007) stipulated that two costs of using credit to obtain immediate 
satisfaction are the interest to be paid and the loss of financial flexibility. They explained 
that interest is a direct monetary cost that varies directly according to the time taken to 
repay the debt. Another cost that can be very significant, but perhaps less visible is the 
flexibility cost of having committed some future income to debt repayment. Using credit 
means accepting an obligation to make future payments that may curtail freedom to 
spend in other ways. If something happens to the income stream due to illness or loss of a 
job, debt payments can become a substantial burden. 
 
Similarly, Pine (2009) argued that the existence of consumer credit encourages people to 
overspend. Its use reduces purchasing power because consumers must pay internet 
charges on credit purchases. Family members may have to postpone or give up 
purchasing needed items to pay the interest due on credit. The interest charges could add 
up to real expense for some families. Pine (2009) again explained that many consumers 
take the promise of “easy payment plans” too literally, and use more credit than they can 
afford. This overspending may lead to rising tensions in the home as family arguments 
about money increase. It could also be a direct cause of personal bankruptcy, a situation 
in which a person legally declares that he or she cannot pay his/her debts.  
Hartarska and Gonzalez-Vega (2005) cautioned that when consumer credit is misused, it 
could cause serious financial challenges and hardships such as inability to budget, save or 
invest, over-indebtedness (a condition of having more debts than one can or is willing to 
repay and creditors actively pressing for repayment), despair and crisis including 
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insolvency (not having money to repay what one owes) and bankruptcy (a situation that 
allows an insolvent debtor to legally obtain relief from financial crisis with any assets 
distributed in an orderly fashion among creditors). Ahmed (2009) also has the opinion 
that the use of a credit card encourages impulse buying and having to pay in cash is a 
more effective restraint. 
 
Another challenge alerted by Stone (2005) is deceitful practices by consumers/customers 
where they are not truthful about their ability to repay. Some people borrow recklessly, 
sometimes with no intention of ever paying back, thereby deliberately committing fraud. 
Lost credit cards are a key element in credit card fraud. Pine (2009) and Goldsmith 
(2005) proposed the following guidelines to help reduce the chances of credit 
mismanagement. 
i. Consider whether there is a genuine need for an item or loan. 
ii. Choose carefully the purpose for which credit is being used. 
iii. Always calculate the total cost of credit to ensure that too much money is not lost. 
iv. Never use credit for luxuries one can do without. 
v. Know the total amount of debt in relation to income. This helps one maintain 
creditworthiness. 
vi. Have only one or two credit cards, at most three. The typical bankrupt individual 
has 20 or more cards. 
vii. Pay off credit cards on time in full each month to avoid interest charges. 
viii. Know what the agreement says; seek cards with the lowest annual percentage rate 
(APR) and no additional fees. 
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ix. Check credit card statements carefully against receipts. Do not allow the 
unauthorized use of credit card number. 
x. Keep a list of credit cards purchased, as they occur. 
xi. Keep a list of credit card numbers in a safe place, in case they are lost or stolen, 
along with a list of toll-free numbers of credit card companies to notify in case 
cards are lost. 
 
2.14 Summary 
From the literature reviewed one could conclude that a family is a unit of intimate, 
transacting and interdependent persons who share some values and goals, make decisions 
and manage available family resources. Women play several roles and assume many 
responsibilities within and outside the family setting. A major responsibility of Ghanaian 
women, who are predominantly homemakers, is the management of family resources to 
sustain or enhance family welfare. The ability to do this successfully depends not only on 
the amount of money available but also on the homemaker’s knowledge and skills in 
financial management. Financial management refers to how economic resources are put 
together and the decisions and actions are taken for the effective use of those resources. 
Money is an important economic resource which is used to obtain goods and services to 
enhance family welfare and provide for growth and security. Families use different 
money management systems and practices in allocating their incomes. Good family 
spending practices involve the application of financial management principles such as 
budgeting (written or mental), setting financial goals, organizing expenditure, 
implementing spending plans by comparing prices, bargaining, buying in bulk, saving, 
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keeping financial records, adequately meeting family needs for food, clothing, health 
care, etc. and evaluating spending plans. Family spending also involves the use of 
consumer credit which is a financial resource that enables the transfer of money, goods 
and services to individuals and families for personal, family or household use for which 
payments are made in the future. Major consumer credit types include service credit, 
sales credit and cash loans. Families access consumer credit for various purposes based 
on convenience, immediacy, bridging financial gaps among others. But consumer credit 
use comes with such challenges as a high interest to be paid, loss of financial flexibility, 
heightened impulse buying, and inability to budget, save or invest. Misuse of consumer 
credit could lead to serious challenges of over-indebtedness, despair and crisis, 
insolvency and bankruptcy. Based on this information it is expected that good spending 
practices and less dependence on consumer credit use would translate into increased 
family satisfaction and enhanced family welfare.  
Based on this review of the literature, the following gaps were realised concerning the 
influence of spending practices and consumer credit use on family welfare: 
i. Most information on spending practices (especially budgeting) is from developed 
countries while very little is known about the practices in developing countries 
including Ghana.  
ii. Most studies in Ghana focus on micro-financing or consumer loans. Studies 
relating to the influence of socio-economic characteristics of consumers on 
consumer credit use are not available. 
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iii. The influence of spending practices and consumer credit use by Ghanaian 
homemakers on family welfare has not been explored. It is against this 
background that the study was conducted to address some of the gaps exposed. 
 
2.15 Conceptual Framework 
Based on the review of literature, a conceptual framework was developed using the 
Systems Theory by Stichweh (2011) to guide the conduct of the study as well as explain 
the relationships among the study variable. A conceptual framework is a collection of 
related concepts that guide a study. It represents a picture of the link between the 
objectives, literature review and methodology employed in the research (Center for 
Diseases and Control Prevention, CDCP, 2013). A challenge in research, however, is to 
employ a framework that makes sense in explaining the variables and concepts in the 
literature and conceptual framework. The Systems Theory was employed to focus 
attention on the whole, as well as on the complex interrelationships among the constituent 
parts of spending practices, consumer credit use and family welfare. 
2.15.1 Investigating Spending Practices, Consumer Credit Use and Family Welfare 
Using the Systems Theory 
The research topic under discussion involves areas such as family income and 
expenditure, financial management processes and principles, personal factors that 
influence spending and consumer credit use, consumer credit management and family 
welfare. These components can be viewed as systems. This research therefore adopted 
and drew on the knowledge, principles and concepts derived from Systems Theory and its 
application as a suitable framework. 
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The Systems Theory focuses on understanding the components parts of a unit or an entity 
and the underlying interactions of all the parts that make up the entity (Stichweh, 2011). 
The study, therefore, attempts to establish how the process of managing the family 
income through spending practices and consumer credit use could influence family 
welfare by the use of the Systems Theory. 
 
2.15.2 The Nature of Systems Theory 
The Systems Theory is a science which has the comparative study of a set of connected 
things forming a “complex whole” as its object. That is, systems and their 
interactions/interrelations among different systems (Wilkinson, 2011). It is an 
interdisciplinary study of systems in general, with the goal of elucidating principles that 
can be applied to all types of systems at the nesting levels in all fields of research 
(Stichweh, 2011; CDCP, 2013). It focuses on an integrated set of parts that function 
together for some end purpose or result.  
Systems theory applies Input      Throughput       Output         Feedback as basic elements 
to the concept of managerial effectiveness (Stichweh, 2011). 
- Input: whatever is brought into the system, which includes; goals, demands, and 
resources. 
- Throughput: processing/transformation of input. 
- Output: end results, products, leftovers, waste, met/unmet goals, satisfaction 
/dissatisfaction with end results 
- Feedback: Occurs when part of the output is retrieved to the input in the form of 
information. Feedback can be positive or negative.  
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Positive feedback is information put into the system that anticipates and promotes 
change; thus, it indicates what new course of action is needed. 
Negative feedback is information put into the system that indicates that the system is 
deviating from the normal course and that, corrective measures may be necessary if the 
desired goal is to be met. 
 
The Systems Theory applies to any system in life, whether formal (e.g. mathematics, 
music), existential (e.g. “real world”) or affective (e.g. aesthetic, emotional, imaginative) 
and therefore has been applied to the analysis of “the complexity” of biological, 
psychological, social, decisions and psychic system (Stichweh, 2011). Wilkinson, (2010) 
indicated that, rather than being an end in itself, Systems Theory is a way of looking at 
things and an internally consistent method of scholarly inquiry that can be applied to all 
areas of social science. He pointed out that in organisations, systems consist of people, 
structures and processes that work together to make an organisation “healthy” or 
“unhealthy”. Systems Theory is not one thing but a set of habits or practices. Thus, 
Systems Theory enjoins the researcher to examine the influence of socio-demographic 
characteristics on spending practices and consumer credit use and their overall impact on 
family welfare. It is within this context that the various study variables were examined. It 
is hoped that the Systems approach will enable the researcher to explain the 
interconnectedness, interdependent, interacting challenges and other dynamics that 
govern each sub-system to interpret challenges and develop balanced interventions and 
strategies to enhance family welfare.  
 
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2.15.3 Applying the Systems Theory in Managing Family Income 
Family income (includes family monetary gains and consumer credit) together with 
family financial goals, demands (family welfare indicators) form Input to the financial 
managerial system.  
The Input goes onto Throughput where they are transformed/processed through 
financial management/spending processes and principles including: 
Planning: Setting and prioritizing financial goals, setting consumption standards for 
products to be purchased, identifying the available family income, drawing budgets. 
Organisation:  Estimating income and expenditure, sequencing bill payment, sharing 
responsibilities for financial management tasks, determining when, where and how to 
shop. Determining record-keeping practices. 
Implementation:  Making consumer purchases, monitoring and taking control of 
spending activities including savings and investments for the future. 
Evaluation:  Reviewing and appraising spending activities and practices. 
During the processing/transformation of family income, situations such as insufficient 
income, emergencies could influence access and use of consumer credit. Personal factors 
such as age, educational level, occupation, marital status could also influence one’s 
money income level as well as his/her spending practices.  
The transformed/processed Input goes to Output as end results, products, met/unmet 
goals, altered resources, satisfaction or dissatisfaction with results. 
The Output (in the form end results) goes to Feedback in the form of information. 
Feedback could be positive or negative. Positive feedback would result in good family 
welfare while negative feedback would result in poor family welfare. The feedback goes 
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back as input to the family financial managerial system. Figure 2.1 presents the 
conceptual framework indicating homemakers’ demographic characteristics, family 
income management, spending practices/processes, consumer credit use and family 
welfare. 
 
Conceptual Framework (Based on System’s Theory)
Money Family Income Consumer Credit
Family Financial  
Goals
Personal Spending Practices/Processes
Factors Planning
Age Organizing
Education Implementing
Occupation Evaluation
Marital Status Input
Throughput
Met financial goals Output
Altered resources Feedback
Satisfaction/Dissatisfaction Personal Factors
Feedback
Positive  Negative
(Good family welfare)(Poor family welfare)
Fi g 2.2: Conceptual Framework Indicating Relationships among study variables 
 Figure 2.2: Conceptual Framework indicating Relationships among study variables 
 
Source: Author’s construct 
 
Based on the theoretical framework and review of related literature, five null hypotheses 
(pp-1) were formulated and tested at an alpha level of 0.05. 
 
 
 
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CHAPTER THREE 
METHODOLOGY 
 
3.1 Introduction 
This chapter presents the methodological framework that was used in this study. It 
describes how data was obtained and analysed. This includes the study design, study 
location, target population, sample size and sampling procedure, data collection 
instrument and procedure, pre-test, data analysis and presentation. 
 
3.2 Study Design 
Cresswell et al. (2003) define a study design as “a plan that describes how, when and 
where data is collected and analysed”. Vishnevsky and Beanlands (2004) also describe it 
as “the researcher’s overall plan for answering the research question or testing the 
research hypothesis”. The study design used was a cross-sectional survey which made it 
possible for the researcher to collect data from a subset of the target population at a point 
in time (Olsen and St. George, 2004; Bernard, 2012). This design was used because only 
a small sample of the homemakers living in Sakumono Estates was studied. Further, the 
design was also appropriate for describing the management principles applied by 
homemakers in the use of money and (the influence of spending practices and consumer 
credit use on family welfare) at a fixed point in time (Neuman, 2006).   
 
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3.3 Study Area 
The study was conducted at the Sakumono Estates, in the Tema Municipality in the 
Greater Accra Region of Ghana. The area forms part of Tema Community 13 and was 
acquired in 1989 by Tema Development Cooperation (TDC) for workers’ housing units. 
TDC allowed Social Security and National Insurance Trust (SSNIT) to build the housing 
units because of a lack of funds to house workers on a rental basis. A sampling frame 
which is a list of the SSNIT housing units obtained from the SSNIT Head Office (Estate 
Department) showed that there were two phases of housing units: - 
Phase one: made up of semi-detached single-storey houses had 429 housing units.  
Phase two: (3 series of flats)  
Series 1: made up of 60 blocks, had 735 housing units. 
Series 2: made up of 16 blocks, had 234 housing units. 
Series 3: made up of 18 blocks, had 280 housing units. 
As such, the number of housing units totalled 1,678. 
These housing units provide accommodation for different homemakers with varied socio-
demographic characteristics. The study area had basic infrastructure including four basic 
schools, four recognized churches, three recreational centres, one community hospital, 
two clinics, a post-office and some shops. There were good road networks as well as 
pipe-borne water and electricity. The area was chosen because of its cosmopolitan nature, 
different households with homemakers, organized data on household on all occupants of 
the housing units and above all being granted access, which made it possible for the 
researcher to solicit varied information about spending practices and consumer credit use 
from homemakers of different ethnic, educational and religious backgrounds.  
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3.4 Target Population 
The target population for the study comprised all adult females (homemakers) who 
managed homes and resided in the 1,678 housing units at Sakumono Estates. Females 
were targeted because, in Ghana, the title “homemaker” is usually used to describe a 
female home manager who has the skills and abilities to maintain a home and actively 
performs such functions as financial management, meal management, home management 
and provides care for the family (Abotchie, 2008). As a result of the cosmopolitan nature 
of the study area, the homemakers would be made of people with varying demographics, 
economic status and other family circumstances. These varied characteristics are desired 
for a study like this.  
 
3.5 Sample Size and Sampling Procedure 
3.5.1 Sample Size 
A sample size typically refers to the number of units that are chosen out of the population 
from which data is gathered (Lavrakas, 2008).  It is imperative that a suitable sample size 
and technique be employed in the selection of respondents for the study. The sample size 
was determined based on the research design, population size, objectives of the study and 
planned analysis (Neuman, 2006). A sample size of two hundred and fifty-two (252) 
homemakers was selected to participate in the study based on Wilcox’s (2010) estimation 
that the sample size in a survey study design could be at least 10% of the target 
population. However, the researcher decided to use 15% of the target population. So, as 
to have more representation from the population to participate in the study. Evidence 
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from SSNIT office showed that a total of 1,678 households therefore applying the 
adopted Wilcox’s (2010) formula, a total of 252 respondents was arrived at.  
Thus, 15 x 1,678 = 251.7this was rounded up to 252. 
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3.5.2 Sampling Technique/Procedure 
Sampling technique is important in statistical analysis because it consists of selecting 
some part of a population to study or obtain data from the population (Meng, 2013). 
Proportionate sampling was used to determine the number of housing units to select from 
each of the locations. According to Salkind (2010), proportionate sampling is used in a 
study population which is made up of several subgroups that vary significantly from one 
another by numbers. In such cases, a sample size from each subgroup is determined by 
their number relative to the entire study population. The researcher first determines the 
population of each subgroup and then applies a proportionate sampling technique to 
select the sample size from each subgroup. Based on Salkind’s (2010) explanation, the 
numbers of housing units were selected relative to the numbers in each of the four sub-
locations of the target population using a formula proposed by (Newman 2006; Salkind, 
2010).  
The formula used is as follows: - 
        Number of units in each phase 
X    Sample size 
        Total number of housing units 
 
 
Table 3.1 presents the proportionate sampling of the housing units. 
 
 
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Table 3.1 Proportionate Sampling of Housing Units 
Housing Types Total No. of Units Formula Used No. Of housing units selected 
Phase 1: Single storey 429 429/1678x 252 65 
Phase 2: Flats    
 Series 1 735 735/ 110 1678x 252 
 Series 2 234 234/1678x 252 35 
 Series 3 280 280/1678 x252 42 
 Total            1678  252 
 
Having obtained the number of housing units representing each sub-location, the 
systematic random sampling technique was then used to select the housing units that 
formed the study sample. Systematic sampling is a version of probability sampling where 
every unit within the population is given an equal chance of being selected for the study. 
A systematic random sampling technique is used when collecting data from a 
geographically dispersed population (Acharya, Prakash, Saxena & Nigam, 2013).   In 
systematic sampling, every nth item (skip interval) is chosen to produce a sample size for 
the study from a population (Bajpai, 2010). To derive the skip interval nth, the researcher 
divided the total number of housing units in each sub-location by the number of units 
429
selected. For example, Phase 1: Single Storey = /65= 6.6. This was rounded up to 7. 
Having determined the skip interval of 7, the starting point was determined randomly 
after which every 7th housing unit in each sub-location was chosen until the required 
number was obtained. The homemakers in these selected housing units participated in 
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this study. To compensate for persons that might opt out of the study, the researcher 
added an extra 10% of the data collecting instrument as estimated by Salkind (2010). 
3.6 Instrument for Data Collection 
A structured interview schedule from Hayhoe et al. (2000) was adopted and modified to 
collect the data. This instrument was used because it ensured a standardized way of 
collecting data from the homemakers, and also very useful in obtaining detailed 
information about personal feelings, perceptions and opinions (Bajpai, 2010). It allows 
the researcher to meet face to face with respondents, usually achieves a high response 
rate and respondents' responses are recorded (Barbour & Schostak, 2005). The interview 
schedule with both closed and open-ended questions was designed to collect information 
on: 
i. demographic characteristics of homemakers 
ii. sources of income for homemakers 
iii. expenditure patterns of homemakers 
iv. management principles applied by homemakers in the use of money 
v. perception and consumer credit use by homemakers  
vi. Factors that influenced spending practices and consumer credit use. 
vii. Family welfare statuses of Homemakers. 
(Refer to Appendix 1 for a sample of the instrument) 
To measure spending practices, a fifteen-item index scale was developed using some 
financial management statements (Hayhoe et al., 2000; Freeman, 2006 and Anyakoha 
and Eluwa, 2008) which homemakers ranked on a five-point Likert scale ranging from 
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(1) Never (2) Occasionally, (3) Sometimes, (4) Almost always and (5) Always. 
(Statements used can be found in Appendix 1, Section D). 
 
To determine financial stress, a fifteen-item index scale was developed using some 
financial stress statements which homemakers ranked on a five-point Likert scale ranging 
from (1) Never, (2) Occasionally, (3) Sometimes, (4) Almost always and (5) Always. 
(Statements can be found in Appendix 1, Section D). 
 
To measure consumer credit use, a thirteen-item index scale was developed using a 
variety of items purchased on credit which homemakers ranked on a five-point Likert 
scale ranging from (1) Never, (2) Occasionally, (3) Sometimes, (4) Almost always and 
(5) Always.  (List of items can be found in Appendix 1, Section E). 
 
To ascertain homemakers’ perception of consumer credit, a seven-item index scale was 
developed using some affective credit attitude statements (Hartsaka et al., 2006; Finley, 
2009) which homemakers ranked on a four-point Likert scale ranging from (1) Strongly 
disagree, (2) Agree and (3) Strongly agree. (Refer to Appendix 1, Section D for 
statements). 
 
To assess family welfare, a ten-item index scale was developed using family welfare 
indicators proposed by Greve (2008) and homemakers stated how adequate these 
indicators were met by ranking them on a four-point Likert scale ranging from (1) Not at 
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all, (2) Fairly adequate (3) Almost adequate and (4) Fully adequate. The family welfare 
indicators used can be found in (Appendix 1, Section E). 
 
3.7 Pre-Test 
The structured interview schedule was pre-tested using twenty (20) homemakers from 
GHACEM flats at Sakumono. Those flats had similar features as the SSNIT flats and 
were occupied by workers just like those in the SSNIT flats. The pre-test brought to light 
that the time was insufficient as same questions were too long and time-consuming, so 
some open-ended questions were restructured into closed-ended with response categories 
to cut down on time spent. Therefore, the pre-test gave a good idea of how data collection 
would work out under real conditions. Many homemakers had difficulty in recollecting 
their expenditure patterns and the amounts spent. Again, this experience helped the 
researcher to determine the clarity, sequence, reliability and validity of the instrument. It 
was detected that many homemakers were uncomfortable disclosing their monthly 
income as well as money available for housekeeping. This experience ensured a 
standardized way of collecting data from the homemakers and useful in obtaining 
detailed information about personal feelings perceptions and opinion as homemakers 
were given income ranges to tick where applicable. It also offered the researcher the 
opportunity to ascertain the adequacy of response categories provided for close-ended 
questions. It ensured that any errors and inadequacies that occurred in the questions were 
reduced (Stewart et al., 2007). Furthermore, it helped determine the average time needed 
for each interview and the number of interviews the researcher could carry out in a day.  
 
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3.8 Data Collection Procedure 
 
 Introductory letter to Manager, Sakumono SSNIT Flats 
 
 
Familiarisation visits to housing units that fell under the sample 
 
 
Homemakers’ contact numbers collected and appointments booked for data 
 
collection 
 
 
Researchers engaged two professional research assistants to hep collect data 
 
 
Questions were administered face to face to homemakers in English or the 
 
local language (Twi, Ga and Hausa) where necessary 
 
 Homemakers’ responses were recorded in the spaces provided on the 
interview schedule 
 
Figure 3.1: Data Collection Procedure 
 
An introductory letter was taken from the Department of Family and Consumer Sciences 
to the Manager, Sakumono SSNIT flats for permission to collect data. Familiarisation 
visits were made to the housing units that fell within the sample. Homemakers’ contact 
numbers were collected and appointments booked for data collection (date, time and 
venue). The researcher engaged two professional Research Assistants and explained the 
instrument and data collection procedure to them. The lead researcher assigned herself to 
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Series 1 of the flats which had 110 housing units while Research Assistant 1 and 2were 
assigned to series 2 & 3 of the flats which had 77units and single-storey houses with 65 
units respectively. The questions were administered to the homemakers face to face in 
English or the local languages (Twi, Ga and Hausa) where necessary and homemakers’ 
responses were recorded in the spaces provided on the interview schedule. To ensure 
validity, translation and back-translation approach was used. That is, for data that was 
collected in the above listed local languages, a professional translator was contacted to 
review the data to ensure and ascertain validity. 
The interviews were conducted mainly in the evenings and at the weekends when 
homemakers were available and at their convenience. An average of one hour fifteen 
minutes was spent in interviewing each homemaker hence, an average of three 
homemakers were interviewed by each researcher on a trip. Participation in the research 
was purely voluntary and participants could withdraw at any point of the interview 
without any drawback. Ten replacements were made (6 homemakers from series one of 
the flats and 2 each from series two and three). This was necessary because these 
homemakers became unavailable or decided not to participate. The replacements were 
made by using information from the extra filled copies of the interview schedule 
collected to cater for unresponsive homemakers. 
 
3.9 Data Analyses and Presentation 
The data were hand-coded, edited, entered and analysed using the Statistical Package for 
Social Sciences (SPSS/PC) Version 21 software. Means, frequency and percentage 
distributions were generated. The Likert scale scores were converted into composite 
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scores to derive categories of spending practices, consumer credit use, perception of 
consumer credit, financial stress in spending and family welfare. The statements used in 
the Likert scale index (Refer to appendix 1, Sections D and E) were derived from 
literature, verified and approved by supervisors. 
For categorisation of spending practices, total scores for each homemaker ranged 
between 15 and 75, which mean that a homemaker who responded “always” to all fifteen 
statements on the spending practice index had a score of 75compared to a score of 15 for 
one who responded “never” to all statements. Scores of homemakers were categorized 
into three levels labelled effective, moderate and poor. This is presented in Table 3.2 
below. 
Table 3.2: Categorisation of Spending Practices 
Scores range Spending Practices 
 < 35 P oor  
35-54 Moderate  
55-75 Effective  
 
Poor spending practices implied that homemakers never or rarely applied financial 
management principles in their spending. 
Moderate spending practices implied that homemakers sometimes applied financial 
management principles in their spending. 
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To analyse the relationship between financial stress and spending practices, total scores for each 
homemaker ranged between 15 and 75. However, higher points scored here meant that the homemaker 
faced more financial stress implying that her spending practices could be poor. Lower scores meant less 
financial stress implying that her spending practices could be effective. This is presented in Table 3.3 
below. 
Table 3.3: Analysis of the Relationship between Financial Stress and Spending Practices 
Scores Range Financial Stress Spending Practices 
< 35 Low Effective 
   35-54 Moderate Moderate 
   55-75 High Poor 
   Effective spending practices implied that homemakers almost always or always applied 
all financial management principles in their spending.  
   
 
To analyse homemakers’ perception of consumer credit total scores for the homemakers 
ranged between 6 and 24 and categorized into two levels:  a high and low perception. 
This is presented in Table 3.4 below. 
 
Table 3.4: Analysis of Perception of Consumer Credit 
Scores Range     Levels of Perception of Credit 
6-15 Low perception 
16-24 High perception 
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Low consumer credit perception implied that homemakers strongly disagreed with the 
Affective Credit Attitude statements. 
High consumer credit perception implied that homemakers agreed or strongly agreed 
with the Affective Credit Attitude statements. 
 
To analyse consumer credit use, total scores for homemakers ranged between 13 and 
65and categorized into three levels: high, moderate and low. This is presented in Table 
3.5 below 
Table 3.5: Analysis of Consumer Credit Use 
Scores Range                      Levels of Consumer Credit Use 
 < 35  Low consumer credit use 
35-49 Moderate consumer credit use 
50-65 High consumer credit use 
 
Low consumer credit use implied that homemakers never or occasionally purchased 
items on   credit   
Moderate consumer credit use implied that homemakers sometimes purchased items on 
credit. 
High consumer credit use implied that homemakers almost always or always purchased 
items on credit.  
 
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For categorisation of family welfare status, total scores for each homemaker ranged 
between 10 and 40 which means that a homemaker who responded “fully adequate” to all 
ten indicators on the welfare index had a score of 40 compared to a score of 10 for one 
who responded “Not at all” to all indicators. Scores of homemakers were categorized into 
two levels, labelled good and poor. This is shown in Table 3.6 below, 
 
Table 3.6: Categorisation of Family Welfare Status 
Scores Range Family Welfare Status 
 <25  Poor family welfare status 
25-40 Good family welfare status 
 
Poor family welfare status implied that homemakers never or fairly met family welfare 
indicators. 
Good family welfare status implied that homemakers almost or fully met family welfare 
indicators. 
To rank the 6 top expenditure categories homemakers were required to categorize based 
on how important they felt each category was to them and their families. 
Cross tabulations of selected variables were done and the Chi-square statistic was used to 
test their relationships at 5% level of significance. The Pearson’s Correlation Coefficient 
and simple linear regression analysis were used to test the hypotheses at 5% level of 
significance (p= 0.05) (Refer to Appendix 3 for details). Data presentation is mainly 
descriptive using graphic representations and tables where appropriate to present 
highlights. 
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3.10 Limitations of the study 
1. The survey study design employed for the study did not allow for in-depth 
knowledge and critical observation of the homemakers’ spending practices and 
credit use. Hence the researcher relied on only the information collected. A 
practical observation of homemakers’ spending practices could have resulted in 
more accurate information in the areas such as their expenditure patterns and 
management principles applied in their spending. 
2.  Homemakers were unable to quote exact amounts spent on items in their 
expenditure, hence estimated amounts were recorded which did not reflect the 
true picture on the ground. 
Despite these limitations in my opinion the data still provided satisfactory 
information on the homemakers’ spending practices even without the practical 
observation. The estimated amounts quoted by the homemakers for their 
expenditure categories provided an idea about their expenditure patterns.  
 
 
 
 
 
 
 
  
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CHAPTER FOUR 
RESULTS AND DISCUSSIONS 
 
4.0 Introduction 
This chapter presents the key findings and discussions of the study. The chapter is 
divided into five sections which include Section I: the demographic characteristics of the 
homemakers used for the study while Section II presents the findings, analysis and 
discussions of the Homemakers income sources. Section III provides the findings, 
interpretations and discussions of the Homemakers spending an expenditure patterns and 
Section IV looks at Homemakers practices in view of the management principles whether 
they align or not and the implications that could have on family well fare. Section V 
presents credit and credit use by Homemakers while Section VI presents family welfare 
and the categorisation of the welfare of the families of the Homemakers in this study. The 
last section, Section VII analyses the relationships existing between the variables studied 
and based on the test statistic values, reject or accept the hypothesis formulated for the 
study. 
  
4.1 SECTION I 
4.1.1 Socio-Demographic Characteristics of Homemakers 
This section presents the demographic characteristics of the respondents used for this 
study. As indicated early (refer to Chapter 3) two hundred and fifty-two (252) 
homemakers were used for this study and the following selected background 
characteristics were analysed: Age, Region of origin, Ethnicity, Religious Affiliation, 
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Marital Status, Type of marriage, Educational level, Occupation, Household composition 
and size. These demographic characteristics are selected specifically based on the idea 
that from the literature, some of them have been proven to have some level of 
relationship with the variables under study and therefore it would be interesting to find 
out how these would play out in this study. 
 
4.1.1.1 Age Distribution of Homemakers 
The ages of the homemakers ranged between 23 and 69 years, with the mean age being 
approximately 46 years. A majority (85% refer to Table 4.1 below) of the homemakers 
were between the ages of 23 and 53 years below the retirement age of 60 years in Ghana. 
This finding is an indication that a majority of the responding homemakers in this study 
were economically viable to engage in several economic and other income-generating 
activities. Again, close to 40% were below 40 years and were within the childbearing (or 
baby boom) age medically.  The relative youthfulness of the homemakers is highlighted 
by the fact that 85% (refer to Table 4.1 below) were below 55 years of age. By 
implication, the younger nature of the respondents meant that they are likely to be abreast 
with technology, and thus, likely to take advantage with regards to looking up for and 
receiving information from various sources regarding income, personal finance, family 
welfare and wellbeing and credit, therefore, making this group of respondents suitable for 
a study like this.  
 
 
 
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Table 4.1: Age Distribution of Homemakers 
Age Range (years) No % 
23-37 81 32.1 
38-53  133 52.8 
54-69 38 15.1 
Total  252 100 
 
4.1.1.2. Region of Origin of Homemakers 
The findings showed that the homemakers used in this study were from all parts of Ghana 
but the dominant group less than one-fifth (approx. 18%) were from the capital of Ghana 
Greater Accra while less than 3% were from the Brong Ahafo, and the rest spread across 
all the other regions (refer to 4.2 below). It must be noted from literature (Nukunya, 2003 
& Abotchie ) that every region of Ghana possesses a unique customs and traditions which 
invariably dictates the perceptions, norms and values the individuals from such region 
would possess. Therefore, as the respondents are coming from all the regions of Ghana, it 
would be interesting to examine how they perceive money and where the emphasis would 
be placed when it comes to spending in relation to family welfare.  
 
Therefore, obtaining information from respondents from different regions of origin gives 
varying and diverse views which has far-reaching implications for a study such as this. 
Again, the regional origins of the homemakers highlight the incidence of migration 
(Nukunya, 2003) into the capital cities in search of greener and better life.  
 
 
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Table 4.2: Region of Origin of Homemakers 
Region of Origin No  % 
Greater Accra 44 17.5 
Eastern 37 14.7 
Volta 36 14.3 
Central 31 12.3 
Northern 26 10.3 
Upper West 24   9.5 
Western 21   8.3 
Ashanti 15   6.0 
Upper East 12   4.8 
Brong-Ahafo  6   2.4 
Total  252 100 
 
 
 
4.1.1.3. Ethnicity of Homemakers 
 
The results show that though the respondents were from various regions of Ghana, the 
dominant group was Akan approximately 45% with the lowest number (less than 1%) 
being Nzemas (refer to Figure 4.1 below) with the others spread across other ethnic 
groups such as Ga and Adangbe, Ewes, Dagaaba, Dagomba etc. (refer to Figure 4.1 
below). According to the Ghana Statistical Service report in 2012, the dominant ethnic 
group in Ghana at that time was the Akans. All these Ethnic groups have their way of life 
and therefore varied perceptions regarding making and spending money and even their 
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own ways of family and welfare. Therefore, obtaining information from such respondents 
provides varied opinions of homemakers from most ethnic groups in Ghana.  
 
 
 
44.8%
45
40
35
30
25 19%
20 17.5%
15
10 6.7%
5.2%
5 3.6%
0 2.4%
0.8%
(n =252) 
Ethnic groups  
 
 
Figure 4.1: Ethnicity of Homemakers 
 
4.1.1.4 Religious Affiliation of Homemakers 
Figure 4.2 below shows that three key religious affiliations emerged in this study namely: 
Christianity, Islam and African Traditional Religion. However, majority of the 
homemakers (approx. 84%) indicated they were of the Christian faith while 14% said 
they were Muslims and a few (2%) classified themselves as belonging to the African 
Traditional faith. The Ghana Demographic Profile (2018) indicated that a majority of 
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Ghanaians show affinity to the Christian faith, therefore if similar sentiments were 
expressed by the homemakers in this study, it is not surprising. It must be noted that 
every religious belief teaches different values and beliefs regarding money, spending, 
family welfare, expenditure and credit especially. And as such having homemakers 
belonging to different religious beliefs could provide diverse views and opinions 
regarding the issues under study.  
 
2%
14%
Christian
Muslim
Traditionalist
84%
(n=252) 
 
Figure.4.2: Religious Affiliation of   the Homemakers 
 
4.1.1.5. Marital Status of Homemakers 
More than two-thirds of the homemakers (68%) were married and lived with their 
husbands. The rest were single (approx. 15%), divorced/separated (approx. 9%) or 
widowed (approx. 8%). An individual whether single or married have developed and 
built their ideas about money, spending and expenditures as well as credit use (or non-
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use). However, when it comes to making some decisions, regarding money, spending and 
expenditures and patterns, there is the likely probability that those who have never been 
married might have their ways, those divorced or widows might also have their ways and 
couples are also likely to have their ways. Therefore, having a mixture of all these 
categories in this study would ensure the richness of the information used to answer the 
objectives of this study. 
 
4.1.1.6 Type of Marriage 
Further analysis of the type of marriage on the couples in this study revealed that the 
majority (81%) of marriages were monogamous, while (19%) were of the polygamous 
type. This finding may be attributed to the Christian affiliation of most of the 
respondents, as it is the belief that Christianity encourages and insist on monogamy and 
frowns upon polygamy, unlike the Muslim religion that is a bit permissive on 
polygamous marriage. Although Nukunya (2003) was of the view that polygamous 
marriage is the common marriage type in Ghana, however, the majority of the 
respondents who were married in this study were of the monogamous type. The 
implication of the type of marriage the respondent have is to assess whether or not there 
were just the nuclear family members the respondents had allegiance to or whether there 
were others, as these have implications on income and expenditures.  
 
4.1.1.7 Educational Level Attained by Homemakers 
Table 4.3 below shows different levels of formal education of the respondents. It ranges 
from no formal education to tertiary levels of formal education. However, the majority 
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(approx. 98%) had attained various levels within the formal educational system with 
more than two–thirds (70%) having attained post-secondary and tertiary levels of formal 
education at the time of the study. Most formal employment organisations always seek to 
employ individuals who have attained some levels of formal education. Therefore, 70% 
of homemakers having post-secondary and tertiary education qualifies them to be 
employed in any of the formal sectors if they so wish to work for such institutions. Thus, 
once they want to work and are employed it meant that these respondents would have a 
secured source of income to spend on themselves and their families. Again, having gone 
through various levels of formal education is also an indication of the homemakers’ level 
of reading, understanding and writing. This is because all the levels of formal education 
expose individuals to reading and writing at various degrees within the various levels. It 
is therefore likely that through their formal education and training, most of these 
homemakers might have come across money, spending and expenditures, credit use (non-
use) etc. or might have read about something on all or some of such issues. Further, while 
undertaking formal education training, individuals meet people from different cultures 
and traditions and learn to interact with and even make friends and form relationships 
with. All these impact peoples’ perceptions about various things including money, 
welfare, spending and credit. Therefore, having homemakers with different formal 
educational levels presents a variation within the respondents which is deemed a plus for 
such a study like this.  
 
  
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Table 4.3: Educational Level Attained by Homemakers 
Educational level attained              No  %  
No formal education  4     1.6 
Basic education    20     7.9 
Secondary education   14     5.6 
Vocational/Commercial  39    15.5 
Post-secondary  58    23.0 
Tertiary            117    46.4 
Total             252  100 
 
4.1.1.8 Primary Occupation of Homemakers  
Table 4.4 shows the primary occupations mentioned by the homemakers in this study. 
Seventy percent (70%) of the homemakers worked in the formal sector and engaged in 
varied occupations ranging from health and social work (approx. 14%) to construction 
(approx. 1%). Others were found in various sectors including education, hospitality 
industry, financial institutions, and education. A chi-square analysis showed a significant 
relationship (χ² = 119.6, df 10, p = 0.000) between educational level and occupational 
sector. That is, the higher the educational level of the homemakers the better their 
chances of working in the formal sector. As revealed (refer to Table 4.3 above) 70% of 
the homemakers in this study had had up to post-secondary and tertiary levels of 
education and the chi-square results are therefore not surprising. Though Nukunya (2003) 
states that many Ghanaian women are usually engaged in petty trading as a means of 
generating income to support themselves and their households. Twenty-eight (28%) of 
the homemakers were in the informal sector and these homemakers were mainly into 
business and trading (approx. 17%). Others were seamstresses and hairdressing while a 
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few were into petty trading. Babatunde (2010) and Nelson (2013) indicated that most 
Ghanaian women engage in various economic activities ranging from the formal to the 
informal sectors to generate income to support themselves and their families. Table 4.4 
outlines the primary occupation of homemakers.  
 
Table 4.4: Primary Occupation of Homemakers 
Sector  No % 
Formal Sector Health & social work  36 14.4 
 Education  34 13.6 
 Financial institutions 24 9.5 
 Hospitality(Hotels/Restaurant) 20 7.9 
 Communication 14 5.6 
 Civil service 11 4.4 
 Secretarial services 10 3.9 
 Public administration 9 3.5 
 Security Services 6 2.4 
 Agriculture 4 1.6 
 Manufacturing 4 1.6 
 Construction 3 1.2 
 Total 175    70 
Informal Sector    
 Business/ Traders 43 17.2 
 Seamstress 11 4.4 
 Hairdressers 10 4.0 
 Petty Traders 6 2.4 
 Total 70    28 
N = 245 (7 retirees)       
 
4.1.1.9 Secondary Occupation of Formal Sector Homemakers 
In addition to the primary occupation of those homemakers who worked in the formal 
sector, a little more than one-third (approx. 34%) of them engaged secondary occupations 
to supplement their income. Out of this number, half (50%) of them engaged in petty 
trading, 10% owned their grocery (provisions) shops and operated commercial vehicles 
respectively. Approximately 8% were seamstresses and hairdressers respectively while 
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approximately 7% each solely owned a nursery school or operated drinking spots. Nosè 
(2010) is of the view that several salaried and non-salaried workers are engaged in 
supplementary income-generating activities on their own outside their primary 
occupations. Probably, the homemakers had a level of welfare they sought for their 
families and just relying on their primary source of income alone may not get them to 
provide that kind of desired welfare and so they had to resort to some form of 
supplementary job to aid in that objective attainment.  
 
4.1.1.10 Household Composition  
Table 4.5 below presents the composition of respondents’ households. This finding 
indicates the likely expenditure patterns the respondents are making. The composition is 
into three groups the average of 5 being the middle and above and below average were 
used as indicators. A Household is composed of a parent(s), biological children and 
extended family members. This study found that more than two-thirds (68%) of 
households had both parents living together and headed by males, while a little above a 
third (32%) had mothers only living with children and headed by females. The female-
headed households comprised the single, divorced or separated and the widowed females 
with their biological children and/or extended family relations. The household size 
ranged between two to eight people. Forty-four percent (44%) had households less than 
the average household size while approximately one fifth (20%) had households with 
members more than the average household size. Though, the mean average household 
size is 5 for this study however, the Ghana Statistical Services Report (2012) placed an 
average of 7 for Ghana as a whole. 
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Table 4.5: Household Size of Homemakers 
Household size              No              % 
< average (5)            116             44.4 
Average (5)  89  35.3 
>average (5)  46  20.3 
Total             252           100.0 
 
 
4.2 SECTION II 
4.2.1 Income Sources of Homemakers 
This section presents the income and its sources as mentioned by the homemakers. 
Several sources including salaries, wages, remittances, dividends on investments and 
income from income-generating activities established by some of the homemakers were 
mentioned. It was also indicated that husbands, working children and other family 
relations were alternate income sources for the homemakers. The detailed findings and 
discussions follow. 
 
4.2.1.1 Monthly Income Earned by Homemakers 
Table 4.6 shows the income levels of the respondents. The incomes were classified into 
three categories: average, above average and below average. Less than half (42%) of the 
homemakers received monthly incomes that were below the average of one thousand and 
one hundred (1,100) an estimate of two hundred American dollars ($200), while a little 
above one-third (32%) received a monthly income of above the average monthly income. 
A little less than one-third (26%) received just around the monthly average for the 
respondents.  
 
 
 
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Table 4.6: Mean Monthly Income of Homemakers 
Income per month (GH¢)     No            %     
<1,100           106    42 
  1,100             65    26 
>1,100            81    32 
  Total            252  100 
   
Receiving regular incomes by the respondents is an indication that there is money 
available at the end of the pay period to be used. Therefore, the respondents in this study 
had some various purchasing powers based on their monthly incomes, and can therefore 
give the desired welfare they wanted for their families. 
 
4.2.2 Main Sources of Homemakers’ Income 
With regards to the main sources of the income of the respondents, Table 4.7 below 
identifies four key sources. These include salaries and wages which forms the main 
source for the majority (approx. 94%) of the respondents. Profits from business (approx. 
54%), dividends from investment (approx. 19%) and remittances from relatives abroad 
(approx. 17%). It is interesting to note that 70% of the homemakers (refer to Table 4.4) 
were working in the formal sectors with 28% being in the informal sector while 2% were 
on retirement, however, 94% indicated they were receiving salaries as their main source 
of income. Probably, in addition to those in the formal sectors, some homemakers in the 
informal sectors are also on salaries/wages, explaining the high percentage of salary/wage 
recipients in this study. However, the Ghana Statistical Service Report (2012) and Nelson 
(2013) stated that formal sector women earned income from salaries and wages while 
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informal sector women earned income from self-employed jobs. But in this study, some 
of the homemakers in the informal sector stated that they were also on salaries/wages.  
More than half (approx. 54%) of the homemakers in addition were also receiving income 
from the businesses they had established and operating while a little less than one-fifth 
(approx. 19%) were also receiving some incomes from the investments made in the form 
of dividends and approximately 17% received remittances from family and relations from 
abroad as another source of income.  
 
Table 4.7: Main Sources of Homemakers’ Income 
Main sources of income              No             % 
Salaries and wages 236 93.7 
Profits from business  137 54.4 
Dividends from investments     47 18.7 
Remittances   43 17.2 
n>252 (multiple responses) 
 
Once the respondents had multiple sources of income, it can be deduced that they had 
monies available to spend on their own and family needs whenever such needs arose. 
And this would have several implications on the welfare of their families. 
 
4.2.3 Main Contributors to Monthly Housekeeping Money and Amounts 
Contributed 
Having revealed their sources of income, the homemakers were asked whether they were 
the sole contributors of housekeeping money and the responses given is presented in 
Table 4.8 below. Table 4.8reveals three main groups of contributors to the housekeeping 
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money for the homemakers’ households. The categories include homemakers themselves 
(98%), husbands (approx. 71%) for those who were married at the time of the study, and 
then income-earning children/family relations living with the homemakers (approx. 
19%). From the above finding, it can be noted that almost all the homemakers (98%) 
contributed to the housekeeping money just as Leigh and Clark (2000), Hogarth & 
Hilgert (2002) &Ghana Living Standards Survey 6. (GLSS6), (2014) suggested. These 
studies reported that women made significant monthly contributions in cash and in-kind 
to the upkeep of their families. Further, Table 4.8 shows the average amounts each of the 
identified contributors contributed. It can be noted that the husbands mean monthly 
contributions for housekeeping money was higher (approx. GH¢ 397) (approx. USD 88: 
estimates based on exchange rates at the time of the study) followed by the contributions 
made by the homemakers (approx. GH¢ 274) (approx. USD 61) while income-earning 
children/relations contributed the lowest (approx. GH¢ 173) (approx. USD 38). Though 
studies (e.g. Leigh and Clark 2000; Hogarth & Hilgert, 2002; GLSS6, 2014) have shown 
that women contributed immensely to household welfare in various forms, however, in 
terms of average mean monthly money contributions, this study has shown that husbands 
of the married homemakers contributed higher amounts than the homemakers. Nukunya 
(2003) reported that in many Ghanaian traditions, husbands (men) are expected to 
provide entirely for their households, and so if the husbands were mentioned as 
contributing higher percentages of the household incomes in this study it is not 
surprising. 
 
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Table 4.8: Main Contributors and Mean Amount Contributed for Household 
Upkeep 
Main contributors               No%            Mean Amounts 
Contributed (GH¢) 
Homemakers  247                  98.0 273.74 
Husbands    178                  70.6 396.60 
Other family members                            49                  19.4 172.45 
N>252 (multiple responses)  
 
The homemakers were asked to indicate whether these contributions were just made by 
the individuals willingly or there was a system in place to determine how much 
contributors contributed. A little less than half (approx. 46%) of the married homemakers 
indicated that the amounts contributed was a collective decision between them and their 
husbands. With regards to family incomes, Osteen and Neal (2012) were of the view that 
couples mostly decided on how much to be contributed to family income. Both spouses 
pooling a percentage of their monthly income together for family upkeep is referred to as 
pooling shared management systems (Osteen & Neal, 2012). Approximately 16% 
indicated that the proportions contributed were solely their husbands’ decision. 
Goldsmith (2005) and Horrocks (2010) suggested that a system in which the husband 
gives the wife a set amount of money every week or month to which the wife tops up 
when the need be can be likened to an allowance given to wives. More than one third 
(35%) of the homemakers said that decision was solely their own. The GLSS6 (2014) 
hinted that contributors to household income mostly influenced household expenditure 
decisions and patterns. This finding again establishes the idea that there were regular and 
available monies that were spent on family needs, and this could have several positive 
implications on family welfare of the homemakers in this study. 
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Further, the homemakers were asked about how they arrived at the amounts contributed 
by the various identified contributors and three systems were mentioned. One group 
(approx. 51%) of them said they itemize all the needs in the house at a particular month 
and put price tags to them. This gave them an idea of the total amount they needed and 
based on that contribution decisions are made. Anyekoha and Eluwa’s (2008) stated that 
an important money management principle is to identify or itemize family needs to be 
achieved and align the available family money with it. The second group of the 
homemakers (49%) said they fish out for household items that have finished and then 
replenish them not necessarily listing them. So, based on what is needed then 
contribution decisions are made. All these two strategies used in determining how much 
is to be contributed helped to maintain a constant supply of needed goods and services for 
members to ensure that desired family welfare is achieved.  
 
4.2.4 Money Available for Monthly Household Use 
Monies that were available for the homemakers to spend on monthly basis varied 
between GH¢100.00 and GH¢900+ with a mean amount of GH¢600.00 (refer to Figure 
4.3 below). More than three quarters 77% of them had between GH¢301.00 (approx. 
USD  67) and GH¢700.00 (approx. USD 156) for household use, while approximately 
17% had between GH¢701.00 (approx. USD 156) and GH¢900+ (approx. USD 200+). 
Nineteen percent (19%) of the homemakers indicated that their mean monthly 
housekeeping money was the same for every month while the rest (81%) said it varies. 
Having constant housekeeping money for a long period could have significant 
implications on family welfare, especially in a high inflationary economy like Ghana 
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where prices of goods and services are not stable and keep increasing literally on a daily 
basis. Having constant money without any adjustments accordingly could be problematic 
as this can negatively affect family welfare desired. On the other hand, it was not 
surprising that a majority of the homemakers indicated that their household money keeps 
varying to cater to the price changes.  
Explaining the causes of the variations in the household money, several reasons were 
given by the homemakers. Just below half (49%) of those who had varying household 
monthly money explained that their family needs keep changing and so they also have to 
change the money available to be able to take care of the changes that had occurred while 
more than one-third of them (33%) said market prices are not stable so as the price 
change they also change the household money. 
Fifteen percent (15%) said that their monthly incomes are not stable and for them, they 
change their monthly household money per the changes associated with their monthly 
income and a few (5%) said the changes depends on their family size at a particular time. 
This group explained that they have wards who are in boarding schools, and so when they 
are home, household money goes up, and when they have to go back to school too it goes 
up as they need more to get them sufficient groceries and pocket money. However, once 
they leave, the family size reduces and therefore, for that period they are away the 
household monthly money is lessened. 
 
 
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37.7%
40 39.3%
30
20
6.3%
10 9.5%
0 7.1%
100-300
301-500
501-700
701-900
901+
Money Avaible 
(n = 252) 
 
Figure 4.3: Money Available for Monthly Household Use (GH¢) 
 
 
4.2.5 Handling of Housekeeping Money 
Table 4.9 below shows the various ways monies were kept for house use. More than two-
thirds (70%) of the homemakers kept the money for the entire period, while 
approximately one fifth (20%) of those married shared the money between husbands and 
wives but to be used on various agreed needs in the house. A few (approx. 2%) indicated 
that the housekeeping money is mostly kept at the bank to be withdrawn and used when 
needed. Ten percent (10%) of them revealed that they put their monies in envelopes and 
mark them for specific needs. Pine (2009) describes this approach as the envelope 
method of handling money. Pine continued that this method has some noted benefits as it 
is so easy for families to know how much of the money is left at any given time. Keeping 
money at home enabled homemakers have easy access to it in meeting family needs 
immediately or as and when the need arose. However, Horrocks (2010) stated that a 
disadvantage of this method is that it requires keeping larger amounts of cash around the 
house which may cause security challenges. Another challenge with such an approach is 
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that it could instigate impulse buying at any given time which could drain the family 
income and impact negatively on family welfare.  
 
Table 4.9: Handling of Housekeeping Money 
Handling of housekeeping money       No  % 
Homemaker keeps the money. 165 65.5 
Part of the money is kept by both spouses and   
spent on identified needs. 50 19.8 
Money is placed in envelops marked with   
specific needs. 25 9.9 
Money is put at a common place in the house. 8 3.2 
Money is put at the bank. 4 1.6 
Total       252              100 
 
However, regardless of the method, these homemakers were using to keep their monies, 
they had easy access to it and therefore whenever any need arose, they could easily see to 
them. This could have a positive implication on welfare for the members in the 
households of the study homemakers. 
4.3 SECTION III 
4.3.1 Expenditure Patterns of Homemakers 
This section presents the expenditure patterns of homemakers. It has been sectioned into 
a wide range of categories and grouped under monthly, occasionally and yearly. The 
expenditure patterns showed items on which homemakers spent on and the mean amounts 
spent on each the categories. This section also represents individuals responsible for 
budget plans and budget decisions and implementation.  
 
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4.3.1.1 Expenditure Patterns and Mean Monthly Household Expenditure 
The homemakers outlined various items which they mostly spend regularly on for their 
household members, these are presented in Table 4.10 below. At a glance, Table 4.10 
reveals that basic needs comprising food, accommodation, clothing with transportation 
took the bulk of the homemakers’ household expenditures while utility bills, church and 
other donations, as well as family remittances, followed as the next heavy expenditure 
items on the homemakers. The third group of expenditure items included entertainment, 
household equipment, personal grooming (including hairdressing &body cosmetics) and 
health and communication. Cumulatively, the homemakers spent a mean monthly 
average of six hundred and twenty-eight cedis ninety-four pesewas (GH¢628.94) an 
estimate of one hundred and thirty-nine American dollars seventy-six cents (USD 
139.76). The second highest expenditure items cumulatively took a mean monthly 
average of three hundred and ninety-three cedis, seventy-four pesewas (GH¢393.74) an 
estimate of eighty-seven US dollars and fifty cents (USD 87.50), while the last third 
group of items on the expenditure list of the homemakers took a cumulative mean 
monthly amount of one hundred and eighty-five cedis, twenty-five pesewas (GH¢ 
185.25) an estimate of forty-one US dollars and twenty cents (USD 41.20). The Living 
Cost and Food Survey Report (2010) and GLSS6 (2014) have indicated that food and 
non-alcoholic beverages formed one of the core and important items on all household 
budgets consumed. 
 
 
 
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Table 4.10: Mean Monthly Household Expenditure of Homemakers 
Household Amount No % Person Budget 
Expenditure (GH₵) Responsible Source 
Food & beverages 252.98 252 100 Homemakers Regular 
Accommodation 152.11 204 81 Husband Supplementary 
Transportation  130.60 245 97 Homemakers  Supplementary  
Homemakers’ clothes 93.25 207 82 Homemakers  Supplementary  
and footwear 
Utilities  82.45 249 98 Both Spouses Regular 
Church duties, Charity 81.11 79 31 Both spouses  Supplementary 
Savings 71.81 228 90 Homemakers  Supplementary 
Remittances  56.47 249 98 Homemakers Supplementary 
Household services 52.15 151 59 Homemakers Regular 
Recreation/ 49.75 111 44 Homemakers Supplementary  
Entertainment 
Healthcare  44.82 242 96 Homemakers  Regular  
Communication  36.86 249 98 Homemakers  Supplementary  
Cosmetics  35.85 250 99 Homemakers  Regular  
Hairdressing  34.95 250 99 Homemakers  Supplementary  
Household equipment  32.77 251 99 Homemakers  Regular  
N>252 (Multiple responses)  
 
 
 
Looking at the total mean monthly expenditures and comparing them with the money available 
for household use (refer to Figure 4.3), some questions need to be raised. For instance, 77% of 
the homemakers indicated that they had between GH¢301 to GH¢700 (estimated USD 67-156), 
and 17% were having a mean monthly house money ranging between seven hundred and one 
cedis to nine hundred plus cedis (GH¢ 701 – 900+) (estimated, USD 156 – 200+). However, the 
total mean monthly expenditure from Table 4.10 as indicated by the homemakers is one 
thousand two hundred and seven cedis, ninety-three pesewas (GH¢ 1,207.93) (USD 268.46). It 
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could be deduced that only a few of the homemakers at the time of the study were able to meet 
their household expenditures from the money available to them. Meaning that the monies 
available to spend are less than the actual expenditures they make. According to Ahmed, (2009), 
insufficient housekeeping money is one factor that influenced consumer credit use. 
Another look at Table 4.10 reveals that the homemakers were solely responsible for making 
several of the decisions regarding some of the expenditure items contrary to what the GLSS6 
(2014) hinted that contributors to household income mostly influenced household expenditure 
decisions and patterns. However, some of the items on the expenditure list show the role that 
husbands played in making those expenditure decisions. For instance, accommodation 
expenditures decisions were solely made by husbands of the married homemakers while the 
singles, never married, divorced and widowed homemakers made those decisions themselves. 
Again, the husband's influence is seen with regards to utilities and church and other donations. 
Working children/relatives were not mentioned when it comes to persons responsible for making 
any of the decisions made on expenditures.  
Again, it could be observed from Table 4.10 the roles played by regular and supplementary 
budgets. Some of the expenditure items (e.g. food and beverages, healthcare, cosmetics and 
utilities) were solely handled from the homemakers' regular budgets while all other expenditures 
were from supplementary budgets. 
Although the homemakers itemized their expenditure, they added that some of the 
expenditures did occur only occasionally, termly and yearly. These expenditures are 
presented below.  
Table 4.11 below shows that clothing purchases as mentioned in Table 4.10 above did 
occur occasionally. The homemakers did buy clothes for their, children, relatives and 
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their husbands (those married) in addition to some miscellaneous expenditures made. 
Thus, though the homemakers outlined clothing as part of their regular expenditures they 
make such expenditure occasionally. Regarding these occasional expenditures too, it is 
interesting to note the roles of husbands (of those married homemakers) in deciding on 
items purchased occasionally. Except for accessories and clothes, homemakers made the 
purchase for their relatives whereas husbands did not play any role in the decision 
making. Another revelation is that all the expenditures made on these occasional items 
were from the supplementary budgets and not the regular budget the homemakers made.  
 
Table 4:11: Mean Occasional Household Expenditure 
Household Amount No % Person Budget 
Expenditure (GH₵) Responsible Source 
Children’s clothes & 96.67 206 81 Both spouses Supplementary  
footwear 
Husband’s clothes & 52.72 89 35 Both spouses Supplementary  
footwear 
Clothes for relatives 47.79 34 13 Homemakers Supplementary 
Accessories  47.38 160 63 Homemakers  Supplementary  
Miscellaneous  5.60 42 17 Both spouses Supplementary  
N>252 (Multiple responses)  
 
Termly expenditures were those expenses homemakers made on their school-going 
children when the school term begins. A majority of the homemakers (93%) made such 
expenditures and they estimated a mean termly average of five hundred and thirty-nine 
cedis and twenty-six pesewas (GH¢ 539.26) (estimated USD 119.84). Items they spend 
on included: school fees, stationery, school uniforms, groceries (provisions) and pocket 
money. The homemakers again stated that the educational expenses for the children were 
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paid for from their supplementary budgets and both spouses (for those married) were 
responsible for the educational budget decisions and implementation, while the single 
homemakers made such decisions alone. The GLSS6 (2014) and Nelson (2013) stated 
that educational expenditures formed an important household expenditure component.  
Yearly expenditure according to the homemakers were those made on bed-linen which 
took an average mean of twenty-three cedis eighty-two pesewas (GH¢ 23.82) (estimated: 
USD 5.29). However, it must be noted that only more than one-third of the homemakers 
incurred (32%) such expenditures. They also did indicate that this expenditure was paid 
from their supplementary budget and both spouses (for those married) were responsible 
for such budget decision and implementation.  
A critical look at the homemakers’ expenditure categories and patterns reveals some 
items which have been mentioned in Maslow’s (1948) human needs. For example, 
expenditures made on basic needs which Maslow referred to as physiological needs such 
as food, clothing, and shelter, household utilities, among others. Other expenditures on 
entertainment, personal grooming aligns with the second-order needs within the 
Maslow’s hierarchy of social acceptance. All these items are used in the assessment of 
family welfare, therefore, the homemakers in this study can be said to be particular about 
the welfare of their family members. This is because all the expenditure items are 
towards giving their household members what they need or would make them feel 
comfortable. 
 
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4.3.1.2 Ranking of Top 6 Expenditure Categories 
The respondents were asked to rank the top 6 important expenditure categories of theirs 
and the result is presented in Table 4.12 below. Food and beverages were ranked the 
highest meaning that is the most important expenditure category for the homemakers, 
followed by healthcare, accommodation, education in that order. These top 6 expenditure 
categories for the homemakers form the basic needs and it is not surprising that the bulk 
of the homemakers’ expenditures were on them (refer to Table 4.10 above). Interestingly, 
all these categories again fall within the indicators of family welfare, meaning that the 
welfare of the homemakers in this study was of top priority to them as shown in their 
expenditure patterns and the quantum of amounts spent on the respective items. The 
findings confirm those of Ba-ama et al. (2013), and GLSS6 (2014) assertion that the most 
important components of household expenditure in Ghana include food and non-alcoholic 
beverages, education, transportation, healthcare and household utilities. According to 
Maslow’s (1948) theory on human needs, these basic needs must be met before the 
individual are motivated to seek other higher levels of needs. It is commendable that most 
homemakers were aware of the importance of these items as basic needs which when 
provided will impact positively on family welfare.  
  
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Table 4.12.: Ranking of Expenditure Categories by Homemakers. 
Expenditure Priority score Ranking in 
Categories order of priority 
Food and non-alcoholic beverages  237 1st 
Healthcare  445 2nd 
Accommodation  469 3rd 
Education  504 4th 
Household utilities  596 5th 
Transportation  623 6th 
Note. * The lower the priority score, the higher the priority 
 
 
4.4 SECTION IV 
4.4.1 Application of Financial Management Principles in Spending 
This section assessed the homemakers’ expenditure practices in line with the 
management principles thus, planning, organizing, implementation and evaluation. 
Literature has it that once all these principles are followed, there is a greater likelihood 
that desired objectives (desired family welfare in this study) will be achieved. The section 
presents the findings and the discussions along with the management principles.  
 
4.4.1.1 Planning  
4.4.1.1.1 Planning or Drawing Budgets for Household Expenses 
Planning by the homemakers was assessed in the light of whether or not they drew 
budgets, the periods for the budget and the kinds and forms of budgets drawn. Majority 
of the homemakers (approx. 90%) indicated that they had budgets which guided them in 
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their expenditures while 10% said they do not have budgets. This implies that majority of 
the homemakers do plan for expenditures they made.  
Out of the 90% that drew budgets, a little above two thirds (61%) explained that they 
drew budgets as it ensures monies at hand were well utilized, more than one fifth (23%) 
each explained that budgets help them to know exactly what to buy and they go for them, 
or for them to ensure that all family needs were catered for. Less than 10% said their 
budgets help them to know how much was needed for family upkeep and also to cater for 
pressing and/or important family needs. Muske and Winter (2004) were of the view that 
budgeting is a systematic approach for balancing income and expenses, and also to ensure 
that there is enough money to cover essentials needs. Thus, the majority of the 
homemakers who drew budgets had good reasons for doing so, as they wanted to ensure 
that their families were well catered for using good financial management principle.  
Those homemakers (10%) who did not draw budgets gave reasons buying items as and 
when they got finished or when those items were needed. Others indicated that they 
followed routine expenditure patterns which were well outlined in their minds. Even 
though these homemakers said they did not draw a budget, they, however, have a system 
clearly outlined in their minds which they use to meet needs. Hilgert et al., (2003) 
suggested that most homemakers operated mental budgets. A little less than one-third of 
them (26%) indicated that it was not necessary to draw a budget since money for 
housekeeping was insufficient anyway. Not drawing budgets could make such 
homemakers overspend or underspend on necessities which could impact negatively on 
their family welfare. Probably though these homemakers might not be drawing budgets 
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but they may also have something which seems to be working for them as they dispense 
their household money. 
4.4.1.1.2 Kinds of Plans or Budgets Drawn 
Out of the homemakers who drew budgets, 72% indicated that they drew written budgets, 
while approximately 18% had mental budgets. McGraw-Hill’s (2001) stated that family 
spending is normally based on budget of some sort – written or unwritten, general or 
specific. This is because budgeting is a necessary function which guides families to 
effectively use their income in meeting household demands over a period of time. It may 
be recalled that 70% (refer to Table 4.3 above) of the homemakers had had post-
secondary and tertiary forms of education and therefore, might know the importance of 
writing down things to serve as reference points when needed. More than two-thirds of 
those who drew budgets (72%) indicated that their budgets were partial thus, they 
planned for only major expenditure, while 25% mentioned that they drew detailed 
budgets all the time. The United States Department of Agriculture Research Report, 
(2006) has it that most homemakers have partial budgets which are mostly not on paper 
but in their heads. Though in this study most of the homemakers 72% out of the 90% who 
drew budgets had written budgets. 
 
4.4.1.1.3 Time Period for Budgets  
Approximately half (50%) of the homemakers who drew budgets said they drew monthly 
budgets, 46%said they rather drew weekly budgets, while approximately 5% drew. 
Drawing of monthly budgets by many homemakers could be attributed to the fact that 
many of them (70%) being in the formal sector received monthly salaries and probably 
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found it more convenient to draw monthly budgets. Goldsmith’s (2005) alleged that 
typically, budgets are based on monthly average spending patterns. The Illinois 
Department of Commerce and Economic Opportunity IDCEO, (2013) suggested that 
monthly budgets allow individuals to ensure that money is available for major purchases. 
Probably because most people from some parts of the world are paid on monthly basis 
and may have money available when their salary payment is due. Drawing weekly 
budgets could be time-consuming, energy supping in the sense that the homemakers 
would need to spend more time and energy in drawing weekly budgets. However, as long 
as it works for the homemakers that is all there is. However, the implication for this 
finding is that at least the majority of the homemakers are particular about the welfare of 
their household members and they painstakingly plan their expenditures to ensure 
members are well catered for.  
With regards to making these financial decisions during the budgeting process, the 
homemakers indicated that they either make the decisions by themselves or together with 
their spouses (for those who are married). Figure 4.4 below shows that 73% of the 
homemakers made household financial decisions alone even while 17% did so with their 
husbands. This meant that mostly all the homemakers were involved in making financial 
decisions at home. Schlater (2007) stated that household financial decisions is usually 
performed by homemakers. Howard (2000) also said that when it comes to spending 
decisions, women are mostly in control because they control the majority of purchasing 
decisions in households. However, Sparks’ (2008) believed that financial decision-
making in the family involves more than one member’s suggestions as revealed in this by 
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the role husbands played in financial decision making. It is commendable that 27% of 
husbands were involved in household financial decision-making. 
73%
80 (n = 252) 
60
40 17%
20 10%
0
Homemaker
Both husband
and wife Husband
Financial Decision Maker
 
Figure 4.4: Household Financial Decision Maker 
 
4.4.1.2 Organisation of Expenditure Plans 
4.4.1.2.1 Preparation of Shopping List 
This section presents the kinds of organisation strategies homemakers adopt as they 
spend their household money available to them. One key approach most (77%) 
homemakers mentioned was the preparation of shopping lists before shopping. These 
homemakers gave several reasons for adopting such an approach; most of them (74%) 
said preparing a shopping list guided them to buy exactly the items they had planned; less 
than one fifth (18%) mentioned that it prevented impulse buying and while a few (8%) 
said it ensures accountability in their marketing. Schlater (2007) suggested that a 
shopping list provides a visible means of controlling money by enabling an individual to 
focus on what to buy and avoid impulse buying, as indicated by the homemakers. 
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Twenty-three percent (23%) said they shop without any shopping list. A majority (93%) 
of such homemakers explained that they have been doing the shopping for some time and 
had therefore built a routine in their minds when doing the marketing. While the few 
(7%) remaining said they cannot read nor write and had to resort to their mental prowess 
when it comes to shopping for household items. Going by Schlater’s (2007) assertion, 
there is the likelihood that if an individual goes shopping without a shopping list, the 
individual could focus on things not needed or impulsively buy things not wanted. 
However, once these homemakers claim that they have acquired some experience in 
shopping without a list, such impulse buying may not necessarily happen in their case.  
 
4.4.1.2.2 Price Comparison during Purchases 
Another strategy the majority of the homemakers (96%) adopted was to undertake price 
comparisons before purchasing items. They indicated that they compare prices so they 
can always get their money’s worth in their purchases and also not taken advantage of by 
prowling and unsuspecting traders. A few (4%) of them said they did not compare prices 
and explained that it was a waste of time and energy because the prices in their view were 
almost the same everywhere a good or service is sold. Researchers (e.g. Freeman, 2006; 
Anyakoha & Eluwa, 2008) advised that comparing prices before purchases is one good 
spending principle which if followed can aid the attainment of set financial goals. 
 
4.4.1.2.3 Factors Considered when Purchasing Food Items 
Apart from the price comparison, there are other factors which when adopted could result 
in good spending practices (Riley et al., 2007). An individual’s ability to skilfully assess 
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the quality, cost or price, sales environment, packaging and expiry date of processed 
foods before purchases are made determines how knowledgeable that individual is when 
it comes to spending to achieve desired goals. Homemakers ranked these factors on a 5 
point Likert scale, with 5 being the highest rank and 1 the lowest rank score. Table 4.13 
below shows the total scores of the ranks by the homemakers. Quality ranked highest 
(with a score of 29) while expiry date ranked lowest with a score of 13. Quality of a food 
item according to Nti et al., (2012) is the wholesomeness or freshness of a food item and 
no signs of spoilage or decay. Quality therefore being ranked highest is not a surprise as 
no individual would like to buy decayed, spoilt or rotten items with money. It must be 
noted that the homemakers had earlier on indicated that they always want to have their 
monies worth and so one sure way is to get home the quality they desired.   According to 
Riley et al., (2007), dirty food environment has a tendency to introduce dirt and germs to 
foods making it unwholesome for consumption. Therefore, buying items especially foods 
from a clean environment is the desire of every individual and therefore, ranking quality 
first and sales environment second as important factors for homemakers especially in 
Ghana is an indication of how the health conditions of household members is of prime 
importance to homemakers. 
Personal observations by the researcher in many Ghanaian market places reveals that 
most food items sold are displayed on mats and sacks on the ground and in the sun. Such 
a practice in the view of Nti et al., (2012), could have a negative impact on the food 
especially fresh fruits and vegetables. It is interesting to note that packaging was ranked 
the third important factor by homemakers, however, in Ghana here, freshest foods, fruits 
and vegetables are sold in their raw and unpackaged form except some processed foods, 
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beverages and others. Maybe the homemakers are referring to only packaged food items. 
When purchasing food items according to Riley et al., (2007) many consumers are 
attracted by the packaging as it also provides useful information about the product. 
Majority of the homemakers in this study had had various levels of formal education and 
could read and write, and might also have been educated about the need to consider 
product information before purchases and consumption, this could have been the reason 
why this factor was important to the homemakers. Though cost of items is important, it 
was ranked last with expiry date being the least ranked. Nti et al. (2012) suggested that 
the cost of a food item is very important as it determines how much one could afford in 
terms of quantities per basket. Interestingly, quantities of food items were not so much 
important to homemakers implicitly than the quality of the items they purchased as per 
the rankings they made. As mentioned earlier probably the homemakers were more 
concerned about the health and general wellbeing of their household members and would 
therefore go for quality instead of quantities. Refer to appendix 3 for further details on the 
rankings. 
 
Table 4.13: Factors Considered When Purchasing Food Items 
Factors considered  
Food items Quality Sales Packaging Cost per Expiry 
environment unit date 
Animal & animal products 5 4 3 2 1 
Cereals and grains 5 1 3 2 4 
Roots, tubers & plantain 5 3 2 4 1 
Provisions (groceries) 4 1 3 2 5 
Fats & oils 5 4 3 2 1 
Fruits & Vegetables 5 4 2 3 1 
Total     29           17       16     15      13 
 
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4.4.1.3 Implementation of Financial Plans 
4.4.1.3.1 Person Responsible and Period for Household Purchases  
Figure 4.5 shows individuals responsible for making the actual household purchases. The 
Figure reveals that a little lower than three-quarters of the homemakers (74%) did the 
purchases themselves.  This confirms Howard’s (2000) statement that homemakers are 
solely responsible for spending decisions and implementation in the home, as they 
control the majority of household purchases. Several reasons were given by homemakers 
as to why they did the purchases themselves; some (42%) said they would like to monitor 
expenditure to get their money’s worth, others (33%) stated that they would like to be 
sure that family members’ preferences and needs are met, while 25% said they had 
nobody to delegate to do the purchases, meaning that if such homemakers had people 
they could delegate purchases to they would have done so. 
Less than 20% each of the homemakers said other family relations or grown-up children 
in their household or house helps do the purchases for their household. The implication 
here is that it is not always that homemakers do the purchases for the household as 
alleged by Howard (2000). Though anecdotal evidence in Ghana suggests that in many 
Ghanaian homes, the homemaker does the bulk purchases while house helps, grownup 
children and family relations in the household buy petty items when needed. Also, some 
husbands do some purchases on few occasions on their way home from work or when 
they travel outside the home. Although this normally happens, the homemakers did not 
mention such happenings. 
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10%
16%
Homemakers
74% House helps
Other family members
n=252
 
Figure 4.5: Persons Responsible for Household Purchases  
 
Concerning the actual periods household purchases were done, more than half (approx. 
58%) of the homemakers reported that purchases were done only on weekends as they 
did not go to work at such times, 27% said monthly mostly at the end of each month 
when salaries were paid, while approximately 14% said on market days. With regards to 
places for purchases, markets, supermarkets and hawkers were mentioned. With regards 
to markets, the homemakers did mention nearby markets or bigger and larger markets and 
explained that prices in the larger markets were mostly cheaper while nearby markets 
afford convenience and the avoidance of heavy traffic associated with having to drive to 
larger markets. Those who patronized the supermarkets said their products were fresh and 
neatly displayed hygienically and therefore very appealing. Those who mentioned 
hawkers said sometimes when they need minor items it is more convenient to just get 
them from hawkers for convenience. Lowe et al’ (2007) outlined traditional markets, 
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retail stores, and non-store options such as door-to-door sales and from vendors as likely 
places where individuals normally do their shopping. 
 
4.4.1.3.2 Quantities Purchased 
The homemakers mentioned two main ways they bought the goods they mentioned as 
buying either in bulk or in smaller quantities. Seventy-eight (78%) of the homemakers 
bought in bulk all the time and they explained that this helps them to save money as they 
got discounts on the quantities bought. Again, they explained that it is a way for them to 
save on transportation cost as they carry all the bulk purchases en-bloc and hence pay a 
onetime transportation fee. They further added that bulk purchases save them time and 
energy to be used frequenting the market. Chatzky (2003) advised that individuals can 
save a lot by buying food items in bulk, and especially when the foods are in season. 
Those who did not buy in bulk (22%) lamented about the insufficient housekeeping 
money, having no appropriate storage facilities coupled with frequent power outages, 
which makes it difficult to buy and store larger quantities of perishables. It can be 
deduced that those homemakers who were not buying in bulk did not know the 
advantages they would have derived from that practice but they felt handicapped in a 
way, and this prevents them from bulk purchases.  
The homemakers further mentioned some of the items they normally purchased in bulk 
(refer to Table 4.14 below) as provisions (groceries) (89%); sugar (54%), fruits and 
vegetables (8%). Probably less than 10% bought fruits and vegetables in bulk because of 
the ease of perishability.  
 
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Table 4.14:    Items Purchased in Bulk by Homemakers 
Item No  % 
Provisions 175 89 
Cereals & Grains 172 87 
Soaps & Detergents 164 83 
Animal products 147 74 
Fats & Oils 110 56 
Sugar 107 54 
Roots, Tubers &Plantain 36 18 
Fruits and Vegetables 16 8 
N>197 (multiple responses) 
 
4.4.1.4 Evaluation of Financial Plans 
Two main budget evaluations were carried out by those homemakers who drew budgets. 
Partial evaluation and no evaluation whatsoever. More than half (57%) did a partial 
review of their financial plans and made some effort to provide for unmet goals. A little 
above one quarter (approx. 27%) said they evaluated only when there was a need for it, 
while approximately 17% never evaluated their financial plans because they found it 
unnecessary. Anyakoha & Eluwa (2008) stated that evaluation is the assessment of 
progress whereby results are analysed and the effectiveness of the implementation plans 
determined. Therefore, for homemakers to be doing partial or not evaluating their 
financial plans (i.e. budgets) at all may result in not knowing how effective they may 
have been with regards to attaining their goals or formulating new plans or adjusting the 
existing ones. 
Not evaluating financial plans could have some negative implications on the family 
expenditure, for instance, they may overspend on some items and underspend on others 
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which might affect the urgent family needs and hence welfare. Thus, if household monies 
run out due to overspending on some items leaving others un-provided, managers of 
household monies may be compelled to resort credit use to solve such emergency needs. 
However, it must be recalled that most of the homemakers had earlier on indicated that 
they resorted mental processes when it comes to spending and probably having relied on 
this practice for some time might have given them the needed experience which they may 
be relying on when it comes to household expenditures. So, they may be having their way 
of evaluating their plans but might not even consider them as an evaluation approach. 
Kempson et al. (2005) reported that knowledge and understanding of financial issues 
enable people to make an informed judgment and make effective decisions regarding the 
use and management of money. In this study, the homemakers appear to have knowledge 
about financial management as they follow many of the management principles either in 
part or whole knowingly or unknowingly. 
 
4.5 SECTION V 
4.5.1 Factors that Influenced Homemakers’ Spending Practices 
This section assessed the factors that undergirded the homemakers spending practices. 
These factors are grouped into personal, economic, social and business (media) factors 
(Lowe et al., 2007). Table 4.15below shows that all four factors mentioned were 
significant when it comes to the homemakers spending practices however, in addition, the 
homemakers mentioned other factors such as forming the foundation of their spending 
practices.  
 
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Table 4.15: Factors that Influenced Homemakers’ Spending Practices 
 
 
Factors that influenced spending practices              No              % 
 
Personal        250  99.2 
Economic       230  91.2 
Social        180  71.4 
Business       160  63.4 
Other (missing in the write up)      90  35.7 
N>252 (multiple responses) 
 
4.5.1.1 Personal Factors 
Almost all the homemakers (99.2%) said personal factors such as their values, goals or 
demands, and lifestyle ways of buying highly influenced their spending. The 
homemakers indicated that what they value most formed the basis for all their 
expenditures. Some items which were listed as the most valued by the homemakers 
include food, healthcare, accommodation, education, household utilities and 
transportation in descending order. Food being valued and ranked high was among the 
items respondents spent highly on, in terms of the mean monthly averages. Again, the 
homemakers’ goals or demand was another personal factor influencing the homemakers 
spending practices. The homemakers said that goals like family immediate needs such as 
food and other basic household needs are the most pressing needs of theirs and therefore, 
all their expenditures are geared towards such demands or goals. A majority (approx. 
90%) of the homemakers said they plan by setting specific goals around family needs; 
they budget for them and implement such plans and this forms the basis of their spending 
practices. As Maslow’s (1948) indicated in his hierarchy of human needs that until 
individuals can see to their basic or physiological, they would not be motivated to pursue 
other higher needs such as safety and security, love and belongingness, esteem and self-
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actualisation. Homemakers formulating their goals and demands around basic needs 
which includes food, shelter, clothing etc. affirms the high expenditures they were 
making on such needs (refer to Table 4.10) and the rankings homemakers made as shown 
in Table 4.12 above. All these personal factors mentioned by the homemakers attest to 
the importance they attach to the welfare of their household members. The homemakers 
also mentioned other personal factors such as their lifestyle and some formed habits such 
as tastes, preferences and likes as other key influencers of their spending practices. The 
homemakers said they were used to some foods, and some kinds of clothing and some 
comfort they always desire and those of their household members and as a result when 
spending monies they always ensure that such preferences (regarding likes) were always 
on their budget list.  Some of the homemakers (38%) indicated that sometimes they buy 
things that are not necessarily planned for and this also affects their spending practices. 
According to the College Foundation Factsheet (2004-2008), unplanned spending or 
spur-of-the-moment purchase often results in the purchase of unnecessary products that 
could lead to unnecessary debt and dissatisfaction with income used. If such practices are 
not checked, could impact welfare negatively. 
 
4.5.1.2 Economic Factors 
The next factor is economic where homemakers mentioned the availability of spending 
money and the prevailing market prices. All the homemakers said that when there is 
housekeeping money available, it determines several spending approaches and even 
modes of making payments. They stated that depending on the period of their budget 
either weekly, fortnightly or monthly (refer to Section 4.4.3.1) they spend the money 
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available. It must be noted here that all these monies homemakers spend were mostly on 
household members’ needs, ensuring that their well-being is catered for. Another 
economic factor the homemakers did mention was the prices of items. They mentioned 
that as part of their organisation, they normally compare prices of goods and services and 
make sure they get their monies worth for every purchase made. Or they make it to larger 
markets where they do bulk purchases to enjoy discounts and save on transportation all 
these were strategies they use when it comes to spending. 
 
4.5.1.3 Social Factors 
Slightly less than three-quarters of the homemakers (approx. 71%) considered social 
factors such as household size, social status, popular taste or likes when spending. The 
homemakers indicate that their household size has a direct bearing on their spending 
practices. For instance, some mentioned that their household size changes per the school 
terms schedules (refer to Section 4.3.7.1) and this dictates the expenditures in the house. 
Others have household members either 5 or more as compared to those with 3 or 2. Those 
with smaller household sizes tend to spend relatively lesser than those with more 
household sizes. Homemakers mentioned that there are some gadgets which make living 
easier but are seen here on this part of the world as something for the rich or city 
dwellers. They mentioned gadgets like television sets (98%), gas or electric cookers 
(97%), deep freezers (82%), washing machines (63%). Others mentioned assets like land 
(35%), houses (25%), and cars while some mentioned expensive clothing (20%) and 
jewellery (15%) as being some of the major determinants of their spending. They 
indicated that some of these are expensive to acquire and maintain as they constantly take 
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money out from the household money but they were quick to add that they make life 
easier at home. In addition to the above, some of the homemakers did add that sometimes 
due to their standing in the society, there are some items they definitely must spend on 
and some of such items are not cheap and these drain their household monies.  
 
4.5.1.4 Business (Media) Factors 
Slightly more than two-thirds (approx. 63%) of the homemakers indicated that their 
spending was influenced by the media especially advertisement. These homemakers said 
that some of their spendings is highly influenced by the advertisements they hear. And 
that sometimes they would like to try some products advertised and so they spend. To the 
extent that more than half (approx. 56%) said they sometimes buy some of these 
advertise items on credit. Others said they purchase some of them during promotional 
sales where they think prices are reduced.  
It must be noted from the above that regardless of the factor influencing homemakers 
spending practices, a majority of them are for the good of the members of their 
households. Therefore, it could be deduced that the homemakers in this study hold the 
welfare of their household members as a priority, as it directs and dictates the direction of 
most of their spending.   
 
 
4.5.2 Categorisation of Homemakers into Levels of Spending Practices  
Three levels of spending practices were used in categorising the homemakers in this 
study based on the classifications by Hayhoe et al. (2000) and Anyakoha et al. (2008). 
The homemakers were categorised into effective, moderate and poor spending practices 
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(Refer to data appendix 1, Section D, no.32 for items).  These classes are based on the 
application of the management principles in the spending practices of homemakers and 
based on their scores, they were categorized into the classes and presented in Figure 4.6 
below. Forty-three percent (43%) of the homemakers applied all the management 
principles in their spending practices and were deemed as being effective in their 
spending practices. The rest sometimes occasionally or never applied the management 
principles in their spending practices, hence were categorized as being moderate (44%) or 
poor (14%) in their spending. Approximately 86% of the homemakers were effective or 
moderate in their spending practices, however, it must be noted that though some of them 
may not have technical knowhow regarding the management principles yet they had their 
strategies when it comes to implementing their spending plans. On the other hand, it must 
be recalled that 70% of them had had post-secondary and tertiary levels of education and 
may have had technical knowledge in management and so applying such knowledge may 
not be difficult. A chi-square analysis showed a significant relationship (χ² = 27.11, df 10, 
p = 0.003) between educational level and spending practices. This implies that, the higher 
the educational level of the homemakers, the better their spending practices. It must be 
noted here that the homemakers who had effective spending practices (42%) were among 
those who had attained tertiary levels of education.  
 
 
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50.0%
43.7%
42.5%
40.0%
30.0%
20.0% 13.9%
10.0%
0.0%
Poor
Moderate
Effective
N=252 
Levels of spending practices
 
Figure 4.6: Categorisation of Homemakers into Levels of Spending Practices 
 
4.5.3 Categorisation of Homemakers into Levels of Financial Stress Experienced  
Three financial stress levels of the homemakers were assessed Hayhoe et al. (2000) scale 
(Refer to appendix 1 for items). Based on the scores homemakers received on the scale 
they were categorized into highly stressed, moderately stressed and lowly stressed 
financially. Figure 4.7 below shows that a majority of the homemakers (96%) 
experienced moderate to high financial stress while only a few (4%) were low financially 
stressed. A low financially stressed homemaker implied that such homemaker practised 
effective spending practices while a high financially stressed homemaker implied the 
application of poor spending practices. It is quite interesting that Figure 4.6 above 
showed the majority (approx. 86%) were categorized as having moderate to effective 
spending practices meanwhile only a few had low financial stress.  
A chi-square analysis showed no significant relationship (χ² = 2.134, df 4 p = 0.711) 
between financial stress and spending practices. This means that financial stress and 
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spending practices are statistically independent, which is contrary to the assumption made 
by Hayhoe et al. (2000) that, high financial stress predicts poor spending practice, but in 
this study, it is not so. The implication is that, even though 86% applied moderate to 
effective spending practices, in reality, they were financially stressed.  
n = 252
 
Figure 4.7: Categorisation of Homemakers into Levels of Financial Stress  
 
4.6 SECTION VI 
4.6.1 Perception of Consumer Credit and Consumer Credit Use. 
4.6.1.1 Categorisation of Homemakers into Levels of Consumer Credit Perception 
Two levels of consumer credit perceptions were used in this study based on Hayhoe et al. 
(2000) scale (Refer to appendix 1 for items). Two main categories high and low 
perception of credit use are the results of this scale. The general assumption is that an 
individual with a high perception of consumer credit would resort to high consumer 
credit use, while low consumer credit perception would result in low consumer credit use. 
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Based on the scores of the homemakers, more than half (approx. 54%) of the 
homemakers had a low perception of consumer credit while the rest (approx. 46%) had 
high consumer credit perception. By implication, more than half of the homemakers are 
likely not going to be high credit users as against the 46% who had high consumer credit 
use. 
The chi-square statistical analysis showed no significant relationship (χ² = 0.033, df 1 p = 
0.855) between the perception of consumer credit use and actual credit usage. Thus, 
homemakers’ consumer credit use did not depend on their perception of consumer credit. 
Hence, the assumption that a high consumer credit perception would result in a high 
propensity to use credit (Hayhoe et al., 2000) was not the case in this study. The result 
also contrasts Chien and Devaney’s (2001) findings that a favourable attitude toward 
credit use was positively related to having instalment debt. In this study, approximately 
70% of the homemakers indicated that they used consumer credits at one point or the 
other contradicting the percentage of those who had a high and low perception of credit 
use stated earlier. Probably certain situations compelled homemakers to use consumer 
credits regardless of whether they had a low or high perception to use consumer credit.  
Various reasons were given for using credit by the homemakers such as high cost of 
living (approx. 65%) and personal preferences (approx. 2%) (Refer to Table 4.16). 
Ahmed (2009) is of the view that the increased use of consumer credit by Ghanaian 
families was due to factors such as high cost of living, unemployment, low salaries, the 
impact of aggressive advertisement and increased availability of credit facilities.  The 
results also support findings by Yankey (2006) and Ba-ama et al. (2013) that Ghanaian 
homemakers used credit because of the high cost of living. 
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Approximately 30% of the homemakers reported they did not use any credit stating the 
main reason as high cost associated with credit usage. Lowe et al. (2007) stated that most 
consumers are discouraged from using because of interest on credit they must pay.  
 
Table 4.16: Reasons for Credit Use by Homemakers 
Reasons for credit use No  % 
High cost of living  163 64.7 
Increased availability of credit facilities 123 48.8 
Insufficient income   99 39.3 
Aggressive advertisement    18 7.1 
Personal attitude/habit     6 2.4 
N >177 (multiple responses) 
 
 
4.6.1.2 Items Purchased on Credit by Homemakers 
The homemakers were asked to indicate the items they normally purchased on credit and 
the frequency of such purchases. All the homemakers revealed that they had used or still 
using some form of credit in their purchases contrary to the 30% who had earlier on 
stated they never used credits. They mentioned items like water (approx. 92%), electricity 
(approx. 81%), telephone services (77%), rent on accommodation (approx. 34%), and 
other household services (approx. 72%). With regards to payment for the utilities, the 
homemakers indicated that they use the post-paid service where they are allowed to use 
them before paying for the cost associated. Leskinen & Raijas’ (2005) said that payments 
made on household utilities in some parts of the world are mostly post-paid and may 
include services like household utilities, domestic helpers, school fees, hospital bills, and 
rent. Such payment arrangement gives family members some time to organize their 
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financial resources in settling.  Finley, (2009) adds that though most services are used on 
credit payment do not attract any additional charges or interest. However, non-payment 
for these service bills would imply immediate disconnection which could negatively 
impact family welfare. 
The homemakers said that the utility items were used on credit almost always but there 
are some items they occasionally or sometimes purchased on credit. They mentioned 
clothing (approx. 87%), household equipment (approx. 85%), educational expenses 
(approx. 39%), transportation (12%), food (approx. 10%) and medical expenses (10%). 
They said that with such items they had the luxury of paying for them in installment. 
Ahmed, (2009) stated that with regards to credit purchases customers and traders or 
business owners strike some form of agreement plan that allows customers to make 
instalment payments over a period agreed upon by both parties. The homemakers 
explained that when they buy expensive items on credit, it allowed them time and space 
to be able to meet pressing needs without having cash at hand. However, in the unlikely 
situation where there is interest on such purchases, the costs of the item(s) tend to 
increase under the interest charges. Deducing from above, the homemakers most of the 
above-mentioned institutions, or traders and businesses trading the in the items 
mentioned above formed the sources of credit for the homemakers. These sources include 
Ghana Water and Sewage Corporation, Electricity Company of Ghana, 
Telecommunication Companies (MTN, Vodafone, etc) and some domestic helpers such 
as house helps, drivers, security services, waste management institutions etc.  
However, some of the homemakers were quick to add that they were able to get some 
consumer goods from some retailers (approx. 49%), hawkers (approx. 22%), market 
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women (approx. 15%) and few from manufacturers (approx. 5%). Hartaska and 
Gonzalez-Vegas (2006) identified some sources where consumer goods were mostly 
purchased on credit as stores, traders and other sellers, just like mentioned in this study 
by the homemakers.  
The homemakers identified some household items that were mostly paid for and never or 
occasionally bought on credit. These items included Liquefied Petroleum Gas (LPG) 
and/or charcoal (97%), recreation or entertainment (approx. 97%), food (approx. 88%), 
educational expenses (approx. 86%), transportation (approx. 85%), medical expenses 
(approx. 84%), accommodation and rent (approx. 57%). They said these items were 
mostly cash and carry and can occasionally be purchased on. This could explain why a 
look at the homemakers' expenditure items (refer to Table 4.10 & 4.12) formed the bulk 
of the homemakers' expenditure and was ranked as the top six in order of importance 
with regards to expenditures made by homemakers. A critical examination of the items 
homemakers normally purchased on credit, food, shelter and utilities featured 
prominently, confirming homemakers’ eagerness to ensure that the welfare of their 
families is not taken for granted in any way.   
 
 
4.6.1.3 Sources of Consumer Loans Obtained by Homemakers 
 
A majority (98%) of the homemakers again mentioned that they occasionally or 
sometimes obtained loans from various sources such as banks (approx. 52%), credit 
unions (25%), friends and relations (approx. 25%). A few mentioned, “susu-operators” (a 
sort of daily micro-savings scheme) (approx. 10%), co-operative societies (approx. 10%) 
and money lenders (approx. 1%). The mention of banks and cooperative or credit unions 
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and societies is not surprising, because most of the homemakers were found in the formal 
sectors of work and probably might be customers or contributors to these institutions and 
are therefore eligible to secure loans from such institutions. Also, most of them earned 
salaries/wages at the end of the month and could therefore use it as collateral for such 
loans. The GLSS6 (2014) mentioned institutions or businesses such as banks, credit 
unions, cooperative societies and individuals such as friends and family relations as 
regular sources of loans for salaried workers in Ghana.  
 
 
4.6.1.4 Purpose for Consumer Loans Obtained by Homemakers 
Table 4.17 shows the purposes with which the homemakers went for the loans. The loans 
according to the homemakers were for the purchase of household items (approx. 91%), 
rent (approx. 65%), or school fees (approx. 60%). A little less than one quarter (approx. 
24%) mentioned family emergencies such as bereavements and/or sicknesses were 
normally taken care of with loans while approximately 74% said their loans were for 
investments either into their business or building projects.  
Table 4.17: Purpose for Consumer Loans Obtained by Homemakers 
 
 
Purpose for consumer loan obtained   No    % 
 
Purchase household items    230   91.2 
Pay rent      165   65.4 
Pay school fees     150   59.9 
Buy land or building project    96   38.0 
Invest in business     90   35.7 
Emergency – (funerals, sickness)   60   23.8 
 
N >252 (Multiple responses)  
 
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Again, it could be seen here that the loans taken by the homemakers were channelled into 
items and situations which will maintain or enhance family wellbeing and welfare. It is 
worth noting that the homemakers (refer to Table 4.10) did spend on household items and 
here they still stated that they sometimes get loans for such items again, meaning they 
were particular about their household members comfort and sustenance.    
 
4.6.2 Categorisation of Homemakers into Levels of Consumer Credit Use. 
Three levels of consumer credit use by homemakers were determined by using Hayhoe et 
al., (2000) credit use scale (Refer to Appendix 1, Section E, for items purchased o credit). 
This scale allowed homemakers to be categorized into low, moderate and high consumer 
credit users. Figure 4.8 below showed that all the homemakers had used credit at one 
point or the other though 30% did indicate earlier that they had never used any credit. A 
majority (approx. 97%) had moderate to high credit use while a few (approx. 3%) were 
rated as low credit users. A high consumer credit use implies that such individuals 
(homemakers in this study) applied poor spending practices, while low consumer credit 
use implies the use of effective spending practices. Meanwhile, in this study, the majority 
(approx. 86%; refer to Figure 4.6 above) were categorised as having moderate to 
effective spending practices, meaning applying the management principles in their 
financial planning and implementation. A chi-square analysis showed no significant 
relationship (χ² = 2.184, df 2, p = 0.335) between credit use and spending practices. This 
means that homemakers’ credit use and their spending practices are not statistically 
related in any way. Contrary to the assumption that high credit use is an indication of 
poor spending practices as originally argued by Hayhoe et al., (2000). Thus, though the 
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homemakers might be practising moderate to effective spending practices, there may be 
some reasons beyond their control since they still needed to secure some loans to take 
care of some situations as they did indicate earlier, not that they were necessarily 
adopting poor spending practices. 
 
60 51.6%
50 45.2%
40
30
20 3.2%
10
0
low
Moderate
High
n = 252
Credit Use  
Figure 4.8: Categorisation of homemakers into Levels of Consumer Credit Use  
 
 
4.7 SECTION VII 
4.7.1 Family Welfare 
This section discussed family welfare by examining Greve’s, (2008) welfare factors in 
the light of the homemakers spending practices. According to Greve’s, (2008) essential 
welfare indicators include food intake, clothing, healthcare, education, transportation, 
entertainment, economic security, accommodation, utilities, ownership of property and 
satisfaction from family income spent. The proceeding sections below analyses each of 
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these indicators in the light of the homemaker's expenditure patterns and then categorises 
the family welfare of the homemakers into status levels to end the section. 
 
4.7.1.1 Family Eating  
4.7.1.1.1 Regular Daily Meals Provided by Homemakers 
All the homemakers hinted that they provided three square meals a day for their 
household members. However, not in a regular pattern as we are used to due to prevailing 
conditions at home. For instance, the majority (98%) indicated that supper is a must, 
while approximately 90% said they included breakfast every day. However, a little below 
half (approx. 49%) provided lunch for their household members on a daily basis. Those 
homemakers who did not serve breakfast (10%) explained that almost all members of the 
family have to leave home very early in the morning so, once they get to their 
destinations (mostly school and work), they have to take care of their breakfast. Because 
breakfast is not served at home and thus, family members have to fend for their breakfast 
outside the home. A similar explanation was given to why lunch was not served at home 
that family members were mostly unavailable at home during lunchtime and so had to 
take care of their lunch at the workplace or school. Approximately 16% added that they 
provided snacks for the younger school-going children to carry to school. Nti et al., 
(2012) found that a majority of Ghanaian families eat at least two meals a day from 
home. Though the homemakers were not at home mostly they, however, have put in 
place various ways their household members would have their nourishment regardless of 
where they found themselves. Another indication of the importance the homemakers in 
this study is their attachment to the welfare of their family members. 
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4.7.1.1.2 Inclusion of Food Items from Food Groups in Daily Meals  
All the homemakers indicated that they added all the various food groups in their daily 
meals given at home. Thus, they added animal products, fruits and vegetables, root, 
tubers and plantain, cereals and grains, nuts, beans oil seeds and fat and oils in the foods 
at home. However, the quantities added for the homemakers varied.  The majority 
(approx. 92%) who added animal products into their foods said they do so because they 
know the importance and the nutritional contributions it provides especially for their 
growing children. Andrea et al., (2018) suggested that the intake of sufficient animal 
products help build the body and contribute to human growth which invariably impacts 
positively family welfare. However, one fifth (approx. 20%) did indicate that though they 
add animal products to their meals, they do not add it frequently. 
Regarding fruits and vegetables, 88% of the homemakers said they always add vegetables 
to their meals either in the stews, soups, salads or fillings and toppings for their 
household while fruits were given not always, although, more than one fifth (approx. 
23%) of the homemakers explained that adding fruits to meals either daily or frequently 
ensures that family members get the needed protection from diseases as possible, which 
has been affirmed by Marquis (2004). Again, they said the vegetables also play protective 
roles for the members in their family especially as it provides micronutrients that 
improves the immune system of their bodies. Andrea et al., (2018) indicated that 
vegetables and fruits provide vitamins and minerals that protect the body against diseases 
and regulate body processes. Greve, (2008) highlighted the importance of fruits and 
vegetables to the human body by explaining that these act as protectors and regulators in 
our bodies and when taken regularly will impact positively on family welfare. A similar 
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trend was mentioned for root, tubers and plantain, cereals and grains and beans, nuts 
oilseed and fats and oils. The homemaker suggested that the roots, tubers and plantain 
were their main sources of carbohydrates which provided the bulk of the meal and supply 
them and their family members’ energy. Greve, (2008) and Nti et al., (2012) confirmed 
the energy given aspect of carbohydrates by saying that sufficient intake of carbohydrates 
ensures a constant supply of energy to the body. The homemakers brought out the 
advantages they and their family members would derive from taken in beans, seed oils 
and nuts. They said these items contain protein and vital vitamins and minerals that could 
supplement animal protein in their meals and especially in vegetarian diets. Such reasons 
were also mentioned by Nti et al., (2012), that beans, nuts and oilseeds provide the body 
with essential vitamins and minerals as well as proteins which are vital for growth and 
protection of the body against diseases. But a little less than half of the homemakers 
(approx. 49%) were quick to add that beans is not something they always add to their 
meals but occasionally and explained that it takes a long time to cook hence, tends to 
waste fuel. Marie, (2004) suggested that beans take long to digest when eaten and 
produce gas, which makes people feel uncomfortable. Mentioning these food groups by 
homemakers is not surprising because earlier on (refer to Table 4.13) when talking about 
major influencers or determinants of their purchases, the homemakers outlined all the 
food groups and ranked six most important factors they consider before they purchased 
these items.  
Findings from the family food intake as revealed by the respondents suggest that most 
homemakers had good knowledge of food items to include in their meals to ensure their 
family members get balanced meals and therefore were likely to meet the nutritional 
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needs and requirements for their family members. Nti et al., (2012) explained that when 
individuals take in recommended daily allowances for the various food groups, they are 
likely to meet their daily nutritional needs and requirements which can impact positively 
on their welfare. Though the homemakers included foods from the various food groups 
however, the frequency of inclusion varied from one homemaker to the other.  
 
4.7.1.1.3 Family Clothing Purchased by Homemakers  
The homemakers had earlier on (refer to Table 4.11) that they do purchase clothing for 
their children, husbands (those married) and family relations occasionally. In their 
purchases, a majority of them (approx. 91%) hinted that they patronized custom made 
clothes, approximately 75% patronized second-hand or used clothes while (46%) 
patronized ready-made clothes. The reasons given by the homemakers for patronizing 
custom-made clothes was because they appear colourful, affordable, sewn to one’s 
specifications or taste and mostly the use of the local or Ghanaian prints or fabrics which 
were more fashionable for them. Those who patronized the second clothing explained 
that they were relatively cheap and could be used as office wears or house wears. Those 
who patronized ready-made clothes explained that such clothes were classy but 
expensive. Greve, (2008) said the ability to meet the family’s clothing needs have a 
positive impact on family welfare. 
 
4.7.1.1.4 Health Facilities Patronized by Families of Homemakers 
Healthcare was one of the key items that homemakers spent money on (refer to Table 
4.10) and was ranked second by the homemakers in their expenditure order of priority. 
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This signifies the importance of health care for the respondents of this study. However, 
two-thirds (approx. 60%) of them said when they need healthcare, they (homemakers) 
and their families attended government hospitals while approximately 36% patronized 
private hospitals. Approximately 12% attended any clinic available while a few (approx. 
3%) resorted to herbal centres. Several reasons were given for these choices made by the 
homemakers. Those who attended Government hospitals said they do so because they 
were covered by the National Health Insurance Scheme (NHIS) and so they pay nothing 
or something very little while those who attended the private hospitals and other clinics 
stated that because they could afford the bills themselves or their employers did pay or 
reimburse them afterwards. The above finding indicates homemakers’ eagers to keep 
themselves and their family members in good health which has positive implications for 
welfare Greve (2008).  
 
4.7.1.1.5 Educational Institutions Patronized by Wards of Homemakers.  
Education also featured on the expenditure patterns of the homemakers (refer to Table 
4.10) and ranking of expenditure priority items as well. The homemakers revealed that 
they made their children attend either the public schools (approx. 68%), private schools 
(approx. 26%) or international schools (approx. 5%). The homemakers explained that the 
schools their wards attend were of a good standard and also within their locality. And 
those whose wards attended private and international schools said it was because they 
could afford the school fees. Leigh and Clark (2000). Suggested that provision of good 
education enhances students’ financial decision-making prowess and can help in securing 
good jobs in the future.  
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4.7.1.1.6 Means of Transportation for Family Members 
Transportation also featured prominently on the homemakers' expenditure list (Table 
4.10) and was ranked sixth on the homemakers’ expenditure priority order. Four main 
types of transportation means were revealed by the homemakers. They either own cars 
(approx. 61%), used taxis (approx. 76%) or resorted to the public transport system 
(approx. 48%). A few (7%) said their institutions have their transport pickups so they use 
that means of transportation always. This finding showed that all the homemakers have 
their transportation arrangements to make it convenient to move about within their 
society. Greve (2008) was of the view that having a regular means of transportation helps 
in meeting some deadlines and getting to desired places when needed and on time which 
impact positively on family welfare of members.  
 
4.7.1.1.7 Entertainment or Recreation for Homemakers and Families. 
Entertainment was one of the items that made it on the expenditure list of the 
homemakers (refer to Table 4.10) and among the few items homemakers did not purchase 
on credit. However, according to Figure 4.9 below, 71% of the homemakers said they did 
not have entertainment often, 14% had entertainment on their part had it very often while 
15% said they never had entertainment at all. Ranking entertainment last on priority items 
may be due to the unimportance some homemakers attach to it. For instance, those 
homemakers who did not regularly have entertainment or never had entertainment 
explained that they do not attach any importance to it. This is probably because of the 
homemakers' busy schedules; meanwhile, entertainment is one of the items that impact 
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positively on welfare and hence having less of it as revealed by the homemakers could 
negatively impact the welfare of members  
15%
Never
14% Very Often
Not so often
71%
(n = 252)
 
 
Figure 4.9: Frequency of Entertainment or Recreation  
 
 
 
4.7.1.1.8 Regularity of Savings by Homemakers 
Savings are a part of family income which is set aside for future use or to meet 
emergencies (GLSS 6, 2014). The findings showed that a little more than two-thirds of 
the homemakers (61% refer to Figure 4.10 below) saved regularly while only (3%) never 
saved. The homemakers who saved regularly were likely to include those who had a 
regular income and/or had knowledge about the importance of savings or were part of 
some savings schemes put in place at their workplaces. Some reasons that were given by 
the respondents as to why they saved regularly included the belief that savings served as 
a reliable source of income to fall on in cases where regular monthly income was 
insufficient to meet family needs or for emergencies. These reasons agree with Gaspard 
’s (2003) assertion that saving is important for security and safety as well as meet 
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emergencies. The GLSS6 (2014) reported that more urban households operated savings 
accounts as compared to rural areas. Regular savings by many homemakers also agree 
with Pine’s (2009) findings that the majority of the women studied saved a little money 
each month. It is commendable that, 61% of the homemakers saved regularly which 
implies that the family will have some money to fall on in times of emergency. This 
practice as suggested by the women will make monies available in emergencies or when 
needed and will impact positively on family welfare.  
3%
36%
Never
very regular
61%
Not regular
(n = 252)
 
Figure 4.10: Regularity of Saving by Homemakers  
 
 
4.7.1.1.9 Economic Security of Homemakers  
For income sufficiency, a little more than half (approx. 52%) said family income was 
insufficient, while (approx. 48%) were of the view that their incomes were sufficient. 
This is surprising because although these group of homemakers who said their incomes 
were sufficient still resorted to credits and loans to cater for emergencies and family 
needs. Those who said their incomes were insufficient gave several reasons as, having 
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low paid jobs (approx. 52%), and trading in the informal sector where incomes were 
irregular coupled with large household sizes to cater for. Though, income insufficiency 
has been argued as a likely factor to impact negatively on family welfare (Greve, 2008). 
All the homemakers in this study resorted to some form of credit in their purchases to 
cater to family needs. The implication here is that though homemakers’ income were 
reported insufficient, they used credits to cushion or leverage the gaps that insufficiency 
can create.  
 
4.7.1.1.10 Accommodation for Homemakers and Families  
Accommodation was one of the key expenditure components for the homemakers in this 
study (refer to Table 4.10) and was one key component that some of the homemakers 
even resorted to loans in paying for it (refer to Table 4.17above) showing the importance 
the homemakers in this study attached to it. It must be noted that it was also among the 
few items they never or occasionally paid for on credit. However, three key 
accommodation arrangements were revealed by the homemakers. There those who rented 
where they lived (82%); those who lived in accommodations given by employers (19%) 
and those who lived in their own houses (6%). With regards to payments, more than two-
thirds (64%) said they paid monthly rent (28% paid yearly). However, those who lived in 
their employers' accommodation facilities hinted that their rents were subsidized for 
them.  
The provision of adequate accommodation by homemakers affirms Boamah’s (2010) 
assertion that accommodation is a prerequisite for human safety and comfort and also 
creates an enabling environment for households to perform both domestic and economic 
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activities. Greve (2008) adds that having a place called home for family members’ impact 
positively on welfare. These findings imply that the homemakers ensured that all the 
accommodation needs of their members were met in every way possible, an indication 
again of their commitment to ensuring their family members attain the welfare they 
(homemakers) desired. 
 
4.7.1.1.11 Utilities Available to Homemakers and Families 
Household utilities were one of the key expenditure items for the homemakers of this 
study. It can be recalled that all homemakers indicated they had access to utilities such as 
pipe-borne water, electricity, private telephone, liquefied petroleum gas for cooking and 
private garbage disposal. They further said some of these utilities were post-paid while 
others were never purchased on credit. An assurance that these utilities were available to 
them and their household member and therefore another positive implication on family 
welfare (Greve, 2008). 
 
4.7.1.1.12 Ownership of Property and Household Equipment by Homemakers and 
Families 
Walker (2005) pointed out that in economics, welfare is mainly connected to the 
individual’s perception and utility of income. Its core has to do with fulfilling essential 
needs including ownership of property by individuals and families. It is clear from Table 
4.19 that homemakers owned a variety of properties with the main one being television 
sets (98.8%) and the least being houses (15.8%). The findings showed that every family 
or household owned some important basic equipment needed in urban homes for comfort. 
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Ownership of adequate household equipment and property will impact positively on 
family welfare (Greve, 2008). Household equipment was occasionally or sometimes 
purchased on credit by many homemakers (84.5%) and their main purpose of obtaining 
loans was for household equipment (91.2%). Acquisition of household equipment and 
property through credit and loans will attract high interest which to some extent, could 
impact negatively on family welfare. Table 4.19 outlines the property/household 
equipment owned by homemakers. 
 
Table 4.18: Ownership of Property or Household Equipment by Homemakers 
Property or Household Equipment              No % 
Television set     249 98.8 
Gas or electric cooker 245 97.2 
Refrigerator  243 96.4 
Computer or laptop 172 68.3 
Deep freezer              159 63.1 
Microwave over 119 47.2 
Land 65 25.0 
Washing machine 52 20.6 
Building or houses 40 15.8 
N >252 (multiple responses) 
 
4.7.1.1.13 Satisfaction of Homemakers with Family Income Spent  
More than half (57.8%) of the homemakers said they were partially satisfied with family 
income spent, while only (2.8%) said they were not satisfied. A chi-square analysis 
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showed a significant relation (χ² = 32.2 df 4 p = 0.000) between satisfaction with family 
income spent and spending practices. This implies that effective spending practices 
adopted could lead to satisfaction with family income spent. It is likely that those who 
were fully satisfied with family income spent (approx. 39%) were among those who 
applied moderate to effective spending practices (85%) while those who were partially 
satisfied (approx. 58% refer to Fig 4.11 below) included those who had moderate to low 
spending practices. The few (approx. 3%) who were not satisfied with family income 
spent could be among those whose spending practices were poor (approx. 14%). Being 
partially or not satisfied with how family income was spent meant homemakers might 
want to change their spending practices given the chance. However, what changes 
homemakers were likely to make in their spending practices was not assessed in this 
study  
57.8
60 (n = 252)
50 39.4
40
30
20
10 2.8
0
full satisfied
Partially satisfied
Not satisfied
Satisfaction with famiy income spent
 
Figure 4.11: Satisfaction of Homemakers with Family Income Spent  
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Percentage 
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4.7.1.1.14 Overall Assessment of Spending vis-à-vis Family Goal Attainment  
The homemakers were asked to assess their overall spending practices against the 
attainment of the goals they set for themselves and their families. Figure 4.12 below 
shows that a few (approx. 1%) gave themselves excellent meaning their spending 
practices adopted gave them exactly what they were looking for while more than half 
(approx. 56%) rated themselves very good or fair (approx. 43%). Walker (2005) pointed 
out that in economic theory, welfare is the evaluation assigned by individuals with 
regards to income and spending practices. From these findings, it can be seen that none of 
the homemakers rated themselves poor, though some of them (approx. 14%) had poor 
spending practices (Figure 4.6 above). This rating of the homemakers indicates they felt 
good about the practices they have in place so far. Probably because these homemakers 
were able to meet the needs of their family regardless of some complaining about 
insufficient incomes.  
 
 
60 55.8
50
42.6
40
30
20
0.8
10
0.8
0
Excellent
very good
Good
Fair (n = 252)
Overall assessment
 
 
Figure 4.12 Overall Assessment of spending vis-à-vis Family Goal Attainment 
 
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Percentage (%)
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4.7.2 Categorisation of Homemakers into Levels of Family Welfare Status 
Two levels of family welfare statuses were established using Greve’s (2008) scale of 
family welfare status (Refer to appendix 1 for items). Figure 4.13 below shows that more 
than two thirds (approx. 69%) had good family welfare status for their families while the 
remaining (approx. 31%) had poor family status. Greeve (2008) has it that when an 
individual adopts effective spending practices there is a greater likelihood that that 
individual will attain a good family status for the family members and the reverse is true. 
The indicators used by Greeve, (2008) to assess family welfare status included items like 
clothing, education, transportation, health-care. In this study, all the homemakers 
provided all these items to their family members and resorted to loans to fill gaps that 
emerged.  The chi-square analysis showed a significant relationship (χ² = 4.584 df 2 p = 
0.001) between family welfare status and spending practices. This implies that, though a 
homemaker might feel excellent about her spending practices, unless she adopts effective 
spending practices, her family welfare status will be poor. Again, it is interesting to note 
that from Figure 4.6 above, though as many as approximately 86% of the homemakers in 
this study had moderate to effective spending practices yet only a little less than 70% had 
good family status. Thus, though Greeve (2008) attributes effective spending practices to 
the attainment of good family welfare status in this study even some homemakers with 
moderate spending practices were able to have good family welfare status contrary to 
Greeve’s assertion.  
 
 
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68.7
 80
60
 31.3
40
 20
0
 
Good
 Poor (n = 252)
Levels of family welfare
 
 
Figure 4.13: Categorisation of Homemakers into Levels of Family Welfare 
 
4.8 SECTION VIII 
4.8.1 TESTING OF HYPOTHESES 
Five null hypotheses were tested using the P values of the chi-square test statistic. First, 
the Pearson’s correlation coefficient analysis was undertaken to determine the 
relationships among selected study variables, while the chi-square test statistic was used 
to determine whether or not the variables understudy were statistically related in any way. 
The 95% significant correlations (that is, those relationships with probability scores, p ≤ 
.05) were used and emphasized. The relationship existing between variables such as 
homemakers’ spending practices, consumer credit use and family welfare was tested 
using a simple linear regression model. The results of these analyses are presented and 
discussed below. 
 
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4.8.2 Hypothesis One 
The null hypothesis (Ho1): There is no relationship between homemakers’ demographic 
characteristics (age, marital status, educational level, occupation, income) and spending 
practices were tested statistically. The results for hypothesis one are summarized and 
presented in Fig. 4.15 (refer to appendix 5a for details). 
 
Results of the Pearson’s correlation coefficient analysis showed that, age (0.182**); 
educational level (0.327**); occupation (0.197*); income (0.346**) significantly 
correlated with homemakers spending practices whereas marital status did not. Meaning 
that to some extent, certain homemakers’ socio-demographic characteristics had a 
significant correlation with their spending practices. The chi-square statistical analysis 
(χ²) revealed age (p = 0.000), occupation (p = 0.002) and income (p = 0.001) had 
significant relationships with homemakers spending practices. Therefore, the null 
hypothesis one was rejected but not for all demographic characteristics. This is because 
homemakers spending practices improved with age, education, occupation and income, 
thus the older the homemakers get the better their spending practices, and the higher their 
incomes the better their spending practices. These variables with strong positive 
correlations were further subjected to statistical analysis to test for the strength of the 
relationship they have with spending practices of the homemakers.  
 
4.8.2.1 Age and Spending Practices.  
Age was measured using the chronological age (in years) of the homemakers at the time 
of the study. Age was strongly correlated with spending practices r  0.182, p  0.01  
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which implies that, the older the homemaker, the more effective the spending practices, 
thus, spending practices improved with age possibly backing the age-old adage that 
“Experience is the best teacher”. A simple linear regression was calculated to predict 
spending practices based on homemakers’ age. A significant regression equation was 
found F (1, 249) = 8.486, p= .004), with an R2of .033. Spending practice was found to be 
equal to 44.798 + 0.144(age). This implies that when spending practice is measured, it is 
improved by 14.4% for each increase in age. Thus, as age increases spending practices 
improves. This finding supports Hayhoe et al., (2000) assertion that age influenced 
spending habits. 
 
4.8.2.2 Educational Level and Spending Practices 
The educational level of homemakers involved the degree of education attained at the 
time of the study. The statistical analyses revealed a significant relationship between 
homemakers’ educational level and spending practices (r= 0.327, p< 0.01). The results 
imply that the higher the educational level of the homemakers, the more effective their 
spending practices. Thus, spending practices improved with higher education. Though 
earlier, in aggregation, education correlated positively with spending practices but not to 
be statistically significant. A simple linear regression was calculated to predict spending 
practices based on homemakers’ educational level. A significant regression equation was 
found F (1, 249) = 29.874, p= 0.000), with an R2of 0.107. Spending practice was found to 
be equal to 42.319 + 1.765(educational level). This implies that spending practices 
improved by 176.5% with each increase in educational level. Hilgert et al., (2003) 
reported that financial knowledge is associated with financial practices like cash-flow 
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management, credit management, savings and investments. Thus, as an individual’s 
knowledge increases his/her financial management skills improves. These findings 
support Ba-ama et al., (2013) study that there is a significant relationship between 
knowledge in financial management and money management practices in that the greater 
the knowledge in financial management, the better the money management practices. 
 
4.8.2.3 Occupation and Spending Practices 
Occupation referred to the kind of work (formal or informal) that the homemakers were 
engaged in at the time of the study. There was a significant relationship between 
occupation and spending practices r  0.197, p  0.01 . The result implies that the more 
structured the form of the homemaker's employment the more enhanced their spending 
practices. Thus, spending practices improved with working in the formal structured 
systems like the formal sector and some private institutions. In this study, more than two 
thirds (approx. 69%) of the homemakers had regular salaries which made it possible for 
them to budget and spend to meet family needs. A simple linear regression was 
calculated to predict spending practices based on homemakers’ occupation. A significant 
regression equation was found F (1, 250) = 10.049, p= 0.002), with an R2 of 0.039. 
Spending practices was found to be equal to 45.753 + 3.080(occupation) indicating that 
spending practice improved by 308% for each occupational status attained. Thus, the 
more structured the homemakers’ occupations the better their financial management 
skills. Probably once they were paid monthly, they had to work out their spending 
practices to reflect the period of payment to run out of vital family supplies. 
 
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4.8.2.4 Income Status and Spending Practices 
Income status of the homemakers was measured using the monthly incomes earned 
(GH¢) at the time of the study. There was a strong relationship between income status 
and spending practices r  0.346, p  0.01 .  The result suggests that the homemakers 
who earned regular income had better spending practices thus, spending practices 
improved with higher income. A simple linear regression analysis was carried out to 
predict spending practices based on homemakers’ income status. The statistical model 
predicted spending practices based on homemakers’ income status and a significant 
regression equation was found F(1, 249) = 33.907, p= 0.000), with an R2of 120. Spending 
practice was found to be equal to 42.277 + 1.092.  This implies that when spending 
practice is measured, it improved by 109.2% for each increase in income earned. Thus, 
the homemakers had to structure their spending according to their incomes received and 
the periods they receive such incomes. Probably because of the monthly nature of their 
incomes their spending is spread and tailored to suit when the next income received.   
 
4.8.3 Hypothesis Two 
The null hypothesis (Ho2) stated that: 
There is no relationship between homemakers’ demographic characteristics (age, marital 
status, educational level, credit, occupation, income status) and consumer credit use was 
tested statistically.  
The results of the Pearson’s correlation coefficient analysis revealed that, educational 
level (0.128*) and occupation (0.198**) correlated positively with consumer credit use, 
while the other demographics though were positive but not significant. Therefore, null 
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hypothesis two was rejected, though not in its entirety as some of the demographics did 
not show any strong correlation. These two items were extracted and further subjected to 
statistical analysis to ascertain the degree of relationship. A summary of the Pearson’s 
correlation coefficient analysis for Ho2is summarized and presented in Figure 4.15. 
(Refer to appendix 5b for details). 
 
4.8.3.1 Educational Level and Consumer Credit Use 
The result implies that the higher the educational level of homemakers, the higher the 
consumer credit use. Thus, consumer credit use correlated with levels of education, 
probably due to exposure or awareness and easy access to credit to such group of people. 
A simple linear regression was calculated between homemakers’ educational level and 
credit use produced the regression equation of F (1, 250) = 4.150, p= 0.043), with an R2of 
0.016. Thus, consumer credit use was found to be equal to 2.162 +0.053(educational 
level). This implies that credit use increased by 5.3% with each increase in educational 
level attained. Meaning the higher an individual gets with education there is about 5% 
chance that he/she would use credit in one form or the other. 
 
4.8.3.2 Occupation and Consumer Credit Use 
The correlation result implies that occupation correlated with consumer credit use, thus 
consumer credit use increased with having a secured and well-structured job. A simple 
linear regression was calculated to show or predict consumer credit use and homemakers’ 
occupation produced the regression equation was of F (1, 250) = 10.242, p= 0.002), with 
an R2of 0.039. Consumer credit use was found to be equal to 2.019 + 
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0.238(occupation)indicating that credit use increased by 23.8% for each occupational 
status. This is not surprising because once an individual has a structured job with a 
regular source of salary or wages, there is approximately 24% chance of that individual 
using credits in one way or the other. 
 
4.8.4 Hypothesis Three  
To test the null hypothesis (Ho3) states that: 
There is no relationship between homemakers’ spending practices and consumer credit 
use. 
The Pearson’s Correlation Coefficient results revealed no significant correlation
r  0.110, p  0.082 . Therefore, the null hypothesis (Ho3) was accepted.  This is 
because consumer credit use did not depend on the homemakers’ spending practices. So, 
the homemakers used consumer credit, irrespective of their spending practices. This is 
evidenced by the fact that only 3.2% of the homemakers were low consumer credit users 
(refer to Figure 4.9 above). 
 
4.8.5 Hypothesis Four 
The null hypothesis (Ho4) states that: 
There is no relationship between homemakers’ spending practices and family welfare. 
The results revealed a statistically significant relationship (r= 0.402, p= 0.001) between 
spending practices and family welfare. Therefore, the null hypothesis (Ho4) was rejected. 
A summary of the Pearson’s correlation coefficient analysis for hypothesis 4 is presented 
Figure 4.16 (refer appendix 5c for details). 
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This is because family welfare depended on spending practices. Thus, spending practices 
predicted family welfare status in the sense that, effective and some moderate spending 
practices enhanced family welfare status. Using a simple linear regression model, a test 
was further carried out to assess whether spending practices of homemakers predicted 
family welfare status. A significant regression equation was found F (1,250) = 48.188, p= 
0.000), with an overall model fit, R2= 0.162. The homemakers’ predicted family welfare 
was equal to 1.017 + 0.019 (spending practice), implying that anytime the homemakers 
adopted effective spending practice, their family welfare improved by 0.019 units (1.9%).  
 
4.8.6 Hypothesis Five 
To test the null hypothesis (Ho5) which stated that there is no relationship between 
homemakers’ consumer credit use and family welfare, the statistical test analysis revealed 
a negative correlation (r= -0.087, p= 0.167). Therefore, the null hypothesis (Ho5) was 
rejected. This is because the higher the consumer credit use, the poorer the family welfare 
status. Thus, dependence on consumer credit use could lead to indebtedness and 
subsequently impact negatively on family welfare status. (Refer to appendix 5c) for the 
table of correlation. 
 
 
 
 
 
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CHAPTER FIVE 
SUMMARY, CONCLUSION AND RECOMMENDATIONS 
 
5.0 Introduction 
This chapter presents a summary of the study, conclusions drawn and recommendations 
made for future research.   
5.1 Summary 
The aim of the study was to assess how the spending practices and consumer credit use 
among homemakers in Sakumono Estates in the Greater Accra Region of Ghana 
influenced their families’ welfare.  The specific objectives of the study were to:  examine 
the income and expenditure patterns of homemakers; investigate the management 
principles applied by homemakers in the use of money; investigate the perception and use 
of consumer credit by homemakers; identify factors that influenced homemakers’ 
spending practices and credit use. It hypothesized that:  Ho1: There is no relationship 
between homemakers’ demographic characteristics (age, educational level, marital status, 
occupation, income status) and spending practices; Ho2: There is no relationship between 
homemakers’ demographic characteristics (age, educational level, marital status, 
occupation, income status) and consumer credit use; Ho3: There is no relationship 
between homemakers’ spending practices and consumer credit use; Ho4: There is no 
relationship between homemakers’ spending practices and family welfare; and Ho5: 
There is no relationship between homemakers’ consumer credit usage and family welfare. 
A proportionate sample of two hundred and fifty-two (252) homemakers was interviewed 
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using a structured interview schedule. The data were analysed using the Statistical 
Package for Social Sciences (SPSS/PS) version 21 software to generate frequency and 
percentage distributions.  The Pearson’s Correlation Coefficient and simple linear 
regression analysis were used to test the null hypotheses at the 5% level of significance 
(p= 0.05). Likert scale scores were transformed into composite scores to generate 
categories of spending practices, financial stress, consumer credit use, perception of 
consumer credit and family welfare. Cross tabulations of some variables were done and 
the chi-square statistic was used to test their relationships. The report of the findings is 
generally descriptive using graphic representations and tables where appropriate to 
present highlights. 
 
Findings of the study revealed that, homemakers had a mean age of 45.5yrs, were 
married (68%), Christians (83.7%), attained post-secondary to tertiary education (70%), 
had a mean household size of 5 and worked in the formal sector (69.4%).  Homemakers 
earned a mean monthly income of GH¢1100 from both formal and informal sectors of the 
economy and the main income source was salaries and wages (93.7%). The mean 
monthly amount for household upkeep was GH¢600 contributed by both homemakers 
(98%) and husbands (70%). Household expenditure covered a variety of categories but 
the top six categories with high mean expenditure included education (GH¢539.26), food 
and non-alcoholic beverages (GH¢252.98), accommodation (GH¢152.11), transportation 
(GH¢130.60) children’s clothing and footwear (GH¢96.67) and utilities (GH¢82.45). The 
homemakers operated with regular and supplementary budgets sources. 
 
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The homemakers had some knowledge in financial management and applied several 
management principles in their spending including planning or budgeting 226 (89.7%) 
and 182 (72%) drew written budgets for household spending.  In organising expenditure 
plans, 73% of the homemakers were the financial decision-makers and 77% prepared and 
used shopping list. During the implementation of financial plans, 75% of the homemakers 
did the household purchases in common markets close to their localities such as TEXPO 
and Nungua. Many homemakers (78%) bought household items in bulk and also 
compared prices of items before purchasing (96%). The findings revealed that when 
purchasing food items, homemakers considered factors such as quality, expiry date, sales 
environment, cost of the items and packaging.  As regards the evaluation of financial 
plans, more than half (57%) did a partial review and made effort to provide for unmet 
goals. Assessment of homemakers spending practices revealed that 42.5% applied all the 
financial management principles in their spending and were categorized as being 
effective while the rest sometimes, occasionally or never applied these principles, hence 
were categorized as being moderate (43.7%) or poor (13.9%). Almost all the 
homemakers (96%) experienced moderate to high financial stress. This implies that even 
though over one-third applied all the financial management principles in their spending, 
in reality, they experienced financial stress as well. This suggests that the heavy burden 
of financial management by homemakers could have serious health implications. 
 
More than half (54.4%) of the homemakers had a low perception of consumer credit but 
70.2% of them used credit in their purchases for various reasons. The results provide 
evidence that the assumption that a low perception of credit would result in a lower 
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tendency to use credit was not the case in this study. A measure of levels of homemakers’ 
consumer credit use revealed that 51.6% were ‘moderate’ while 45.2% were ‘high’ 
consumer credit users.    
 
Factors that influenced homemakers’ spending practices ranged from personal (99.2%), 
economic (91.2%), social (71.4%) and business factors (63.4%). Factors that influenced 
homemakers’ consumer credit use included high cost of living (64%), increase 
availability of credit facilities (48.8%) and insufficient income (39.3%). Family welfare 
was assessed by looking at factors that impacted on welfare such as family eating pattern, 
patronage of clothing, health facilities patronized, educational institutions patronized by 
wards of homemakers, means of transportation, entertainment and recreation patronized 
among others. More than two-thirds (68.7%) of the homemakers were categorized as 
having good family welfare status. Majority of homemakers (97.2%) were partially 
(57.8%) or fully (39.4%) satisfied with how their incomes were spent and (55.8%) 
assessed their overall spending vis-à-vis family goal attainment as very good while 
42.6% viewed it as good.  
 
The Pearson’s correlation coefficient analysis revealed that homemakers’ demographic 
characteristics such as age (p = 0.01), education (p = 0.01), occupation (p = 0.01) and 
income (p = 0.01), had significant relationships with spending practices whereas 
educational level (p = 0.05) and occupation (p = 0.01) predicted consumer credit use. The 
statistical analysis revealed no significant correlation between homemakers’ spending 
practices and consumer credit use. However, the analysis confirmed that spending 
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practices (p = 0.001) predicted family welfare in the sense that, good spending practices 
enhanced family welfare. There was a negative correlation between consumer credit use 
and family welfare implying that dependence on credit use would lead to poor family 
welfare. It is concluded that to some extent, homemakers spending practices and 
consumer credit use did influence their family welfare both positively and negatively. It 
is recommended that stakeholders in the field being examined including Ministry of 
Education, Extension workers, Ghana Home Economics Association (GHEA), 
Microfinance and Consumer Credit institutions, should design practical educational 
programs for both formal and informal deliveries to provide knowledge and skills 
required for financial management matters particularly good spending practices and 
consumer credit use to enable both present and future homemakers make informed and 
effective decisions regarding the use and management of money and credit to enhance 
family welfare. Also, the stress experienced by homemakers as they perform the 
important responsibility as financial managers of households is likely to reduce. 
Acquisition of such skills by as many homemakers as possible would reduce the stress 
experienced by homemakers as they perform these important responsibilities which are 
central to family welfare. 
 
  
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5.2 Conclusion 
In conclusion, the findings of the study revealed that to some extent, homemakers’ 
spending practices and consumer credit use did influence their family welfare both 
positively and negatively in that, homemakers who applied effective spending practices 
and depended less on consumer credit had good family welfare status. Homemakers who 
applied poor spending practices and depended more on consumer credit had poor family 
welfare status. 
 
5.3 Recommendations 
The results revealed that homemakers operated with partial plans, did a partial evaluation 
of financial plans and did not keep financial records. Even though more than half (54%) 
of the homemakers had a low perception of consumer credit, many housemakers (70.2%) 
used consumer credit.  The categorisation of homemakers into levels of consumer credit 
use confirmed that only (4%) were low consumer credit users.  In light of these findings 
and conclusion of the study, it is recommended that: 
 
1. Copies of this work would be given to stakeholders in the field being examined 
including Ministry of Education, Extension workers, Ghana Home Economics 
Association (GHEA), Microfinance and Consumer Credit institutions, should 
design practical educational programs for both formal and informal deliveries to 
provide knowledge and skills required for financial management matters 
particularly good spending practices and consumer credit use to enable both 
present and future homemakers make informed and effective decisions regarding 
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the use and management of money and credit. Acquisition of such skills by as 
many homemakers as possible would reduce the stress experienced by 
homemakers as they perform these important responsibilities which are central to 
family welfare. 
2. Ministry of Education should make the subject Home Economics compulsory and 
examinable at the Senior High Schools and Home Economics teachers should 
stress emerging issues in financial management including good spending practices 
and effective consumer credit use. This would enable the students (especially the 
young girls) acquire some knowledge and skills in financial management and 
consumer credit use that would help them in their future household financial 
management. 
 
5.4 Suggestion for Further Research 
Further study could be carried out using the case study design on family or household 
spending to enable a more critical observation of homemakers’ spending practices to 
provide in-depth knowledge of problem areas which are likely to be overlooked by a 
survey. A case study would allow the researcher to observe only a few homemakers and 
record their expenditure categories and the actual amounts spent. The observation could 
also their spending practices as consumer credit use. 
 
    5.5 Research Contribution to Knowledge 
1. The findings have contributed important primary data to the rather limited 
information on “the influence of homemakers’ spending practices and consumer 
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credit use on family welfare” particularly in Ghana. This could serve as a base 
point of reference for the government of Ghana, policy-makers, regulators and 
future researchers on their deliberations about spending practices and consumer 
credit use. 
2. The results have also provided updates to the literature on the roles and 
responsibilities of women as financial managers of households and the challenges 
they face. 
3. These findings suggest that in Ghana’s fast-growing economic environment, there 
is need for homemakers to acquire knowledge and understand the skills required 
in financial management matters particularly on consumer credit use, a fast 
spending practice in Ghana. Such empowerment would enable homemakers to 
make informed and effective decisions regarding the use and management of 
money and credit to enhance family welfare. The stress experienced by 
homemakers as they perform the important responsibility as financial managers of 
households is likely to reduce. 
4. Since one of the Ghana government’s aim is to achieve good quality life for all 
families, the findings underscore the need to include in the national policy agenda, 
strategies to empower homemakers to enable them to maintain the well-being of 
families the basic units of society. 
5. The results debated the assumption that a high perception of consumer credit 
would result in a higher tendency to use credit. Reason being that, certain 
situations beyond the homemaker's control might have compelled those with even 
low perception to use credit. 
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6. The findings also provided evidence that financial stress levels did not portray the 
corresponding spending practices levels. The results were contrary to the 
assumption that high financial stress predicted poor spending practice. This is 
evidenced by the fact that even though over one-third of the homemakers applied 
all the financial management principles in their spending and were categorised as 
having effective spending practices, in reality, they experienced financial stress as 
well. This suggests that the heavy burden of financial management by 
homemakers could have serious health implications. 
  
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APPENDICES 
 
APPENDIX 1 
INTERVIEW SCHEDULE ON THE INFLUENCE OF HOMEMAKERS’ 
SPENDING PRACTICES AND CONSUMER CREDIT USE ON FAMILY  
WELFARE AT SAKUMONO ESTATES, TEMA 
 
My name is Elizabeth M. Ba-ama, a Ph.D. student offering Family Resource 
Management in the Department of Family and Consumer Sciences at the 
University of Ghana, Legon.  I would appreciate it very much if you could assist 
me to obtain some information on spending practices and consumer credit use to 
enable me to submit a thesis. 
 
All responses are strictly confidential.  
A. BACKGROUND INFORMATION OF HOMEMAKERS 
 
1.   House No: .................................Tel. no.: 
....................................................... 
2. Ethnic group: ....................... Region of origin: ......................................... 
3. Age (years): .............................................................................................. 
4. Religious Affiliation 
1. Christian 
2. Muslim 
3. Traditionalist 
4. Others:(Specify) ............................................................................ 
5. Marital Status 
1. Single 
2. Married 
3. Divorced 
4. Widowed 
5. Separated 
6. Type of Marriage: 
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1. Monogamous 
2. Polygynous 
7. If the marriage is polygynous, how many co-wives are there? 
One   
Two 
Three 
More than three 
 
8. What is your status among the wives? 
First 
           Second 
           Third 
           Fourth 
Others (Specify)................................................................................... 
 
9. What is your Educational level? 
No formal education 
Basic education 
Secondary education 
Vocational/Commercial 
Post-secondary 
Tertiary 
                    Others:  
(Specify)...................................................................................... 
 
10. What is your occupation? 
Primary occupation......................................................................................... 
Secondary occupation...................................................................................... 
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11. Approximately how much income do you earn in a month? (GH¢) 
50 - 100 
101 - 200 
201 -300 
301 -400 
401- 500 
501 -   600 
601 -  700 
701- 800 
801- 900 
901  - 1,000 
Above 1,000 
12 Ownership of residence 
1. Owned by family 
2. Rented 
3. Duty Post 
4. Others (specify)........................................................................................... 
 
13  Household composition 
       
S/ NO. MEMBER AGE GENDER EDUCATIONAL OCCUPATION RELATIONSHIP 
LEVEL TO HEAD 
1.       
2.       
3.       
 
 
 
 
 
 
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B. SOURCES OF FAMILY INCOME 
14   What are the main sources of your family income? 
Salaries 
Interests on savings 
Dividends from investment 
Profit from business 
Remittances 
Others................................................................................ 
15 Approximately how much money is available for regular monthly 
household use or family upkeep?  (GH¢) 
           <100  
           101– 200             
201– 300 
301– 400 
401– 500 
501– 600 
601– 700 
701– 800 
801– 900 
901– 1,000 
Above 1,000 
Is this amount usually the same for all months? 
Yes                       No      
 Explain..............................................................................................................                                  
 
 
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16 Who are the main contributors to your household income and how much is 
contributed by each person? 
 
  Frequency of contribution (daily, weekly, forth-
Contributors to household Amount contributed nightly, monthly) 
income (GH¢) 
1. Husband   
2. Homemaker 
3. Others: (Specify)  
 
 
17 Who decides on how much to contribute for household upkeep? 
            1.   Homemaker    
            2.   Husband   
            3.   Both Husband and homemaker  
 4.    Others (Specify).................................................................................. 
 
18 How do you determine the contributions to be made by each person? 
1. By itemizing family needs 
2. Equally shared between both husband and wife 
3. A percentage of monthly income from each spouse 
4. The husband provides the bulk of money and wife adds the rest 
5. The wife provides the bulk of money and husband adds the rest 
6. Husband only 
7. Wife only 
8. Others. (specify)................................................................................. 
19 How is your housekeeping money handled? 
1. Homemaker keeps the money 
2. Money is put at a common place in the house 
3. Part of the money is kept by both spouses and spent on  
identified needs 
4. Money is placed in envelops marked with specific needs 
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5. Put at the bank 
6. Others, (specify)............................................................................. 
 
C. EXPENDITURE PATTERNS OF HOMEMAKERS 
20 Do you usually draw a budget for household expenditure? 
Yes                     No    
Explain........................................................................................................ 
21.        How is the budget drawn? 
1. Written on Paper                                   
2. Mentally  
Explain........................................................................................................ 
22.  What is the form of your budget? 
1. Detailed                          
2. Partial                              
 
3. Others (Specify)................................................................................ 
23.  What period do you usually make your budget for? 
1. Daily 
2. Weekly 
3. Fortnightly 
4. Monthly 
 
24. Who identifies/decides on household needs? 
 
1. Homemaker   3.   Both husband and homemaker 
2. Husband    4.    Others: (specify) …………….. 
 
25. Which of the under-listed items from your regular household expenditure and 
approximately how much is spent on each? 
     
Household expenditure Approximate Specified period Persons Budget source 
amount spent for expenses providing for Regular/supple
(GH¢) (Daily/ expenses mentary 
weekly/monthly) 
Accommodation/housing     
1. Rent 
2. Maintenance/ 
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repairs 
Household Utilities 
1. Water bill 
2. Electricity bill 
3. Telephone bill 
4. Cooking fuel 
(gas, charcoal etc.) 
5. Garbage disposal 
Food 
1. Animal Products 
2. Cereals and 
grains 
3. Roots, Tubers 
and Plantain 
4. Provisions 
5. Soup Ingredients 
6. Fruits and 
vegetables 
7. Fats and oils  
Clothing& Foot Wear 
Homemaker 
1. Casual wear 
2. Occasional wear 
3. Funeral cloths 
4. Underwear 
Others, (specify) 
Children  
1. Casual wear 
2. Occasional wear 
3. Under ware 
4. Others, 
(specify) 
Husband 
1. Casual wear 
2. Occasional wear 
3. Under ware 
4. Other (specify)... 
 
Accessories 
1. Jewellery 
2. Beads 
3. Wristwatches 
4. Handbags 
5. Handkerchiefs 
6. Other 
(specify).............. 
 
Cosmetics 
1. Body cream/ 
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pomade 
2. Powder 
3. Makeup 
4. Perfume 
5. Nail polish 
6. Other 
(specify).............. 
 
 Bed linen 
1. Bedsheets and 
pillowcases 
2. Blankets 
3. Pillows  
4. Other 
(specify).............. 
 
Hairdressing 
1. Barbering 
2. Hair Products 
3. Salon charges 
4. Manicure and 
Pedicure 
5. Other 
(specify).............. 
 
Clothes for house help 
/houseboy        
Clothes for other relatives 
 
Healthcare 
1. Food 
supplements 
2. Hospital bills 
3. Pharmaceutical 
4. Exercises 
5. Other medical 
expenses 
(specify)............. 
Education: 
School fees  
Basic 
Secondary 
Tertiary 
Extra Teaching fees 
Stationary 
       Textbooks 
       School uniforms 
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       Pocket money 
       Personal dev’t 
      Other (specify)… 
Household 
Equipment/materials 
1. Kitchen linen 
2. Kitchen 
equipment 
3. Serving dishes,  
4. Electrical 
gadgets  
5. Cleaning 
equipment 
6. Detergents and 
insecticides 
Toiletries  
 
Transportation 
1. Lorry fare 
2. Car Maintenance 
and Repairs 
3. Fuel (car) 
4. Other 
(specify)............. 
 
Recreation/entertainme
nt 
1. Gifts for special 
occasions 
2. Family outings 
& parties 
3. Visitors 
4. Hobbies  
5. Other 
(specify)............. 
 
Remittances 
1. Mother 
2. Father 
3. Relatives 
4. Social 
organisation: 
(dues, church 
contributions/do
nations 
5. Charity 
6. Funerals  
7. Other 
(specify)............. 
Savings 
1. Susu 
2. Bank      
3. Welfare 
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4. Societies 
5. Emergency        
 
Household services 
1. House help 
2. Gardener 
3. Driver 
4. Security 
 
Taxes 
1. Income Tax 
2. Interest on loans 
3. Other (specify) 
 
Communication  
1. Telephone 
2. Mobile phone 
3. Other (specify) 
 
Miscellaneous 
expenses 
(Specify)....................
...................................
................................... 
 
26. What plans have you made towards retirement and or investments? 
.................................................................................................................................... 
             Rank your top six expenditure in order of priority 
   
Expenditure Ranking of priority Reason 
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1. Accommodation/shelter   
2. Healthcare 
3. Education 
4. Household Utilities 
5. Transportation 
6. Clothing 
7. Food 
8. Home maintenance 
9. Recreation/entertainment 
10. Savings 
11. Remittance 
12. Household equipment 
13. Investment 
14. Other (Specify)............. 
 
 
D. APPLICATION OF MANAGEMENT PRINCIPLES IN SPENDING 
27. Do you usually do the purchases for your family or you delegate 
somebody to? 
Yes                                                              No                  
Explain....................................................................................................................... 
28. When is marketing normally done? 
1.              Daily    3.    Weekends 
2. Market days                                    4.    Monthly 
Others: (specify)............................................................................................... 
Explain: ............................................................................................................. 
29. Where do you normally do your purchases? 
1.  Large Markets              4.  Large Supermarkets 
2. Common Markets   5. Smaller Supermarkets 
3. Hawkers                                             6.  Around residence 
Others 
(specify)........................................................................................................ 
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Explain.......................................................................................................... 
30. Do you buy in bulk? 
1.          Yes               2.      No 
Explain...........................................................................................................
Which items do you purchase in bulk? 
1. Animal Products 
2. Root tubers & plantain 
3. Cereals and grains 
4. Soup ingredients 
5. Provisions 
6. Fruits and vegetables 
7. Fats and oils 
8. Soaps & Detergents 
Others: (specify)................................................................................ 
31. What do you look for when purchasing the following? 
Items Quality Cost/ Expiry Selling Packaging Others 
per unit date Environment 
1. Animal products       
2. Cereals & grains 
3.Roots tubers & 
plantain 
4. Provisions 
5. Soup ingredients 
6.Fruits & 
vegetables 
 
32. Spending Practices Index (Respond appropriately to each of the under-
listed Financial Management Statements). 
 
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 1 2 3 4 5 
Financial Management statements Never Occasionally Sometimes Almost Always  
always 
1. Making a budget      
2. Planning expenditure/spending 
3. Making a shopping list  
4. Following the shopping list  
5. Comparing prices 
6. Bargaining 
7. Controlling spending (Keeping to 
family budget) 
8. Buying in bulk 
9. Reading information or labels 
10. Keeping records of expenditure (bills, 
receipts) 
11. Making payments on bills 
12. Saving on a regular basis 
13. Making some investments 
14. Feeling satisfied with spending 
15. Evaluating spending activities 
 
33. Which of these factors influence your spending? (Tick as many as 
applicable) 
1. Price of the item    
2. Personal values  
3. Family goals 
4. Life style 
5. Money available 
6. Family size 
7. Social status 
8. Advertisement  
9. Sales promotion 
10. Impulse purchase 
11. Others 
(specify).................................................................................................... 
 
 
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34. Financial Stress Index (respond appropriately to each of the under-listed 
Financial Stress Statements).  
 1 2 3 4 5 
Always Almost Sometimes Occasionally Never 
Financial Stress Statements 
always 
1. Not able to discuss      
financial matters without 
getting upset 
 
2. Having financial concerns      
that affect relationships 
 
3. Impulsive buying      
 
4. Not able to provide      
nutritious meals 
 
5. Not able to purchase      
clothing 
 
6. Not able to save for      
emergencies 
 
7. No money for medical bills      
 
8. Not able to keep the car      
running/pay transport bills 
 
9. Not able to pay school fees      
 
10. Not able to pay utilities      
 
11. Money gets finished before      
the end of the month 
 
12. Not able to have      
entertainment/recreation 
 
13. Feeling sorry for purchases      
made 
 
14. Not able to remit parents      
 
15. Not able to make      
investments 
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E. CONSUMER CREDIT USE 
35. Do you make use of credit facilities in your purchases? 
1. Yes                                             2.  No 
             If yes, what are your reasons? 
1. Insufficient money/low salaries 
2. High cost of living 
3. Impact of aggressive advertisement 
4. Increased availability of credit facilities 
5. Personal attitude 
6. Others, (Specify)................................................................................ 
             If no, Explain............................................................................................................ 
36. Affective Credit Attitude Index (respond appropriately to each of the 
under-listed Perception of Consumer Credit Statements). 
 
 1 2 3 
Perception of Consumer Credit Strongly Agree Strongly 
Statements disagree agree 
1. I like buying items on credit.    
2. I love to have a credit card.    
3. Buying on credit helps me meet     
4. Family financial goals.     
5. Consumer loans are very helpful in    
family upkeep. 
6. The very thought of using    
consumer credit disgusts me. 
(Reverse score). 
 
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7. Buying on credit cost more due to    
high interest (reverse score). 
37. Variety of Credit Purchases Index. (Respond appropriately to each of the 
under-listed items purchased on credit.) 
 1 2 3 4 5 
Items purchased on Nev Occasiona Sometim Almo alwa
credit er lly es st ys 
Alwa
ys 
1. Food      
2. Clothing 
3. Accommodation/rent 
4. Household 
equipment 
5. Transportation 
6. Educational expenses 
Utilities:  
Water 
Electricity 
Telephone services 
Gas/charcoal 
Medical expenses 
Household services 
Recreation/entertainment 
 
38. Which sources of Consumer loans have you used? 
1. Banks 
2. Credit unions 
3. Cooperate Societies 
4. Moneylenders 
5. Friends/relatives 
6. Susu Operators 
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1. Ghana Water Company 
2. Ghana Telecom 
3. Electricity Company of Ghana 
4. House helps 
5. Transport owners 
6. Health care providers 
Others, (specify)....................................................................................... 
7. Others (specify)…………………………………………………………………… 
 
39. What do you use consumer loans for? 
......................................................................................................................................... 
40. What are the sources of Consumer goods you have purchased on credit? 
 
1. Hawkers           
2. Market women 
3. Retail traders 
4. Shops 
5. Manufacturers 
6. Others (specify)................................................................................ 
                       Explain: ..................................................................................................... 
41. What are the sources of Service credit you have used? 
……………………………………………………………………………………............  
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F. INFLUENCE OF SPENDING PRACTICES ON FAMILY WELFARE. 
42. What are the regular daily meals for your family? 
1. Breakfast          
2. Lunch             
3. Supper             
4. Snacks  
5. Others………………………………………………………......... 
43.  How frequently do you include these food groups in your daily meals? 
 Frequency of Consumption 
 1 2 3 4 5 
Food Groups 
Never Occasionally Most Often Always Reasons 
Animal products      
Fruits      
Vegetables      
Roots and tubers      
Cereals      
Beans and Nuts      
Fats and oils      
44. What type of clothing do you usually patronize for family members? 
1.  Ready-Made  
2.  Custom made  
3. Second hand 
4. Others................................................................................................. 
45. Which health facility do you and your family members usually patronize? 
1. Government hospitals   
2. Private hospitals 
3. Clinics 
4. Herbal Centres 
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5. Others................................................................................................. 
Explain: ........................................................................................................ 
46. Which educational institutions do your children attend? 
1. Public schools 
2. International schools 
3. Private schools 
4. Others..................................................................................... 
47. What means of transportation do your family members usually patronize? 
1. Private Means  
2. Institution / Company bus 
3. Public Means;  Trotro             Taxi              Dropping  
48. How often does the family have entertainment/recreation? 
1. Very often 
2. Not so often 
3. Never 
Explain: ........................................................................................................... 
49. How regularly do you save? 
1. Very regular 
2. Not regular 
3. Never  
Explain: ........................................................................................................... 
50. Which of these household equipment do you own? 
1. Gas/electric cooker   
2. Refrigerator 
3. Defreezer 
4. Television set 
5. Washing machine 
6. Microwave  
7. Computer/ Laptop 
8. Others.................................................................................................
Is your income sufficient to meet family expenses? 
                   Yes                           No 
Explain.............................................................................................. 
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51. How adequate are you able to meet the following needs of your 
household? 
 1 2 3 4 
Household needs Not at all Fairly Almost Fully adequate 
adequate adequate 
 
Feeding     
Clothing     
Healthcare     
Education     
Accommodation/shelter     
Recreation/entertainment     
Transportation     
Utilities     
- Water 
- Electricity 
- Telephone 
52. How do family members feel about what they get from family money spent? 
1. Fully satisfied 
2. Partially satisfied 
3. Not satisfied 
Explain.......................................................................................................... 
53. What is your overall assessment of your spending vis-à-vis family goal 
attainment?  
1. Excellent  
2. Very Good 
3. Good  
4. Fair 
5. Poor 
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APPENDIX 2 
MEASUREMENT OF STUDY VARIABLES 
VARIABLES  WHAT WAS HOW IT WAS ANALYSIS  
MEASURED MEASURE  
Household Income Daily income, weekly Means and percentages 
income contributed  by income, monthly 
family members income  
for household use 
Household Expenditure Lists of items bought Frequency  and % 
expenditure within the within the specified distribution , charts / 
specified time on time and the amount graphs  
fixed expenses, spent on each item  
flexible expenses 
Spending The extent to Likert scale adapted Correlation with 
practices which from Hayhoe et al. selected demographic 
homemakers (2000); spending variables.  
applied practices index was 
appropriate money derived from the sum 
management of responses to ten 
principles in questions dealing 
spending. with financial 
management. 
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VARIABLES  WHAT WAS HOW IT WAS ANALYSIS  
MEASURED MEASURE  
Financial stress The extent to Also adopted from Correlation with 
in spending  which a Hayhoe et al. (2000); spending practices to 
homemaker is financial stress index validate the responses 
stressed through was formed using a to the spending 
her spending number of yes practices questions; the 
practices  responses to ten expectation was that 
possible financial sound spending 
stressors. practices would result 
in less financial stress 
in spending  
Consumer credit The types of Checklist of Frequency and % 
use  purchases made by commonly bought distribution, 
homemakers on items (obtained from charts/graphs  
credit  Ghana Statistical 
Service) indicating 
which items and 
frequency of 
purchase.  
Constraints faced Constraints that Homemakers were Frequency and % 
from consumer households required to indicate distribution, 
credit use  experienced as a the constraints they charts/graphs  
result of consumer 
faced from using 
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credit use  consumer credit  
VARIABLES  WHAT WAS HOW IT WAS ANALYSIS  
MEASURED MEASURE  
Personal data: Demographic data Homemakers were Correlation with 
Age, occupation, of the respondents  required to select the spending practices and 
marital status, categories that best consumer credit use  
educational described them  
status, and 
income status  
Family Welfare Welfare indicators 4-point Likert scale Regression analysis of 
of the family.  requiring family life on spending 
homemakers to practices and consumer 
indicate how well credit use to determine 
they met the feeding, their influence on 
clothing, health, family life.  
education, shelter, 
and social needs of 
their families.  
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APPENDIX 3 
FACTORS CONSIDERED WHEN PURCHASING FOOD ITEMS 
 
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APPENDIX 4 
PEARSON CORRELATIONS AMONG STUDY VARIABLES 
Age 1 2 3 4 5 6 7 8 9 10 
Age                           (1) -          
Marital status           ( 2) .385xx -         
Education level         (3) -.024 -.104 -        
Occupation               (4) .044 -.043 .614xx -       
Income                     (5) .089 -.030 .529xx .294xx -      
Perception of credit  (6) .009 .049 -.075 -.060 -045 -.004 -    
Consumer credit use (7) .082 .093 .128x .198xx .116 .176xx .052 -   
Spending practices   (8) .182xx .054 .327xx .197xx .346xx -.049 -.091 .110 -  
Family welfare         (9) .142x -.023 .364xx .237xx .410xx .137x -.103 -.087 .402xx .410xx 
* represents p≤.05, ** represents p≤ .01 level of significance (2-tailed) 
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APPENDIX 5  
DIAGRAMMATIC REPRESENTATION OF HYPOTHESIS 
HYPOTHESIS ONE 
Pearson’s correlation coefficient analysis between homemakers demographic 
characteristics (age, educational level, marital status, occupation, income) and spending 
practices. 
 
Age 
 
 
 
Educational .182** 
Level 
 
.327** 
 
 Marital Status .054 Homemakers’ 
Spending Practices 
 
.197* 
 
Occupation 
 
.346** 
 
 Income Status 
 
 
 
 
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HYPOTHESIS TWO 
Pearson’s correlation coefficient analysis between homemakers demographic 
characteristics (age, educational level, marital status, occupation, income) and consumer 
credit use. 
 
Age 
 
 
 
Educational     .082 
 Level 
.128* 
 Marital Status Homemakers’ 
.073 
Spending Practices 
 
 
.198** 
 
Occupation 
 
.116 
 
 Income Status 
 
 
 
 
 
 
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HYPOTHESIS THREE 
Pearson’s correlation coefficient analysis between spending practices and family welfare 
status. 
 
S pending practices .110 Consumer Credit Use 
 
 
HYPOTHESIS FOUR 
Pearson’s correlation coefficient analysis between spending practices and family welfare 
status. 
 
 
Family Welfare 
 Spending practices .162** status 
 
 
HYPOTHESIS FIVE 
Pearson’s correlation coefficient analysis between spending practices and family welfare 
status. 
 
 
Family Welfare 
 Spending practices .167 status 
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