Household financial resilience in developing economies: the role of financial behaviour, economic resources, and social capital

Household financial resilience has become increasingly important in developing economies, where income instability, limited social protection, and exposure to economic shocks heighten vulnerability. This study examines the extent of financial resilience among households in Ghana and analyses the roles of social capital and financial behaviour in shaping resilience outcomes. Using a quantitative cross-sectional survey design, data were collected through a structured questionnaire administered to 396 households selected through convenient sampling. The data were analysed using structural equation modelling (partial least squares approach). The findings indicate that approximately 86.6% of households - nearly nine out of ten - experience severe to high levels of financial vulnerability, suggesting low levels of financial resilience. The results further show that financial behaviour and economic resources significantly and positively influence household financial resilience, whereas social capital does not exert a direct significant effect. These findings highlight the critical importance of prudent financial behaviour in strengthening household capacity to withstand shocks. The study recommends promoting sound financial habits and encouraging households to seek professional guidance on savings, debt management, investment decisions, and expenditure planning to enhance resilience.