DOES PERSONALITY DETERMINE FINANCIAL DECISION MAKING?

Abstract

This study investigated psycho-socio-economic factors as predictor of financial decision making among civil servants in Ilorin metropolis. This study was conducted in order to find out how psychological traits, and Social factors influence financial decision making among civil servants in Ilorin metropolis, Nigeria. This study employed a descriptive survey method with the aid of questionnaire. A Purposive and a Non-Proportional Quota Sampling Technique was used for the purpose of this study. A total of 287 questionnaires was administered amongst civil servants in Ilorin metropolis within the state ministries, however, only 285 were properly filled and dully returned. Three research instruments were used namely: Ten Item Personality Inventory (TIPI), Financial Decision Making Questionnaire (FDMQ) and Bandwagon Effect Questionnaire with reliability coefficient values of 0.7, 0.87 and 0.85 respectively. T-test for independent samples, Analysis of Variance (ANOVA) and Multiple Regression was used at .05 level of significance with results indicating that Extraversion, Agreeableness, Conscientiousness, Neuroticism and Openness to experience have joint and independent influence on financial decision making (R2 = 0.29, F (6,280) = 18.56, p<.05).There is also a significance influence of Bandwagon effect on financial decision making among civil servants in Ilorin metropolis. For the third hypothesis, gender did not significantly influence financial decision making (t (285) = 1.62, p>.05). Educational qualification significantly influence financial decision making (F (2,284) = 4.36, p<.05). Based on the findings from this study, one can easily conclude that: personality traits usually the BIG FIVE have high or strong influence on financial decision making; the bandwagon effect also revealed a strong influence on financial decision making; extraversion, agreeableness, conscientiousness, neuroticism, openness to experience and economic factors have joint and independent influence on financial decision making among civil servants in Ilorin metropolis. In view of the findings of this study, attention should therefore be placed on civil servants by psychologists, administrators, political leaders, counselors, on how and when to make productive decision and that spontaneous decisions should not be made in the sight of problem.