Analysis of income and expenditure of households in Nima community Accra, Ghana

Abstract

The research investigated the sources and the average weekly income of household heads, examined amounts spent on needs; identified financial challenges faced and investigated strategies adopted to handle the challenges. The population of the study covered all household heads living in Nima East and West, a suburb of Accra. Descriptive survey was used and simple random sampling was used in selecting 120 respondents. Semi-structured interview schedule was used to elicit information from respondents. Data was analysed using descriptive techniques like frequencies and percentages, and presented in tables and charts. Findings revealed that 40.8% were males, 59.2% females with those in active work within the ages of 20-59 (96.7%). Majority (57.5%) were married with only 33.3% attended tertiary institutions as the highest level of their education. Muslims were the majority (63.3%) and of Mole-Dagbani ethnicity group (55%). Respondents (94.2%) were self- employed who earned between (GH¢ 151-200) as mean weekly income. Respondents’ expenditure was high on basic needs like education (GH¢ 210-250 a term), food (GH¢ 105 a week) and house rent (GH¢ 97 per month). Total expenditure made by household heads a month was (GH¢ 953.86). Among others, poor health (mean = 3.18), failure to budget (mean = 3.00), impulse buying (mean = 2.90), were the critical factors that brought financial challenges to the respondents. Food management (85.8%), negotiations with the head teachers to pay school fees (74.2%) and money borrowed to pay hospital bills (53.3%), and the use of charcoal instead of gas (63.3%) were the measures used to tackle financial challenges. It was recommended that, Home Economist should educate household heads on financial management practices, facilities in public schools should be enhanced by the government and education on NHIS intensified. It was recommended that subsidies on electrical energy and fuel (petrol & gas) should be increased to save the environment.