Only 14% of working Ghanaians are very satisfied with their financial situation.
According to the 2023 Old Mutual Financial Services Monitor, the informal sector and local income earners in Ghana are the most financially stressed.
While 68.0% of those financially stressed are in the informal sector, 55% are in the formal sector.
On dependents, the report revealed that the incidence of dependents is high. Less than half are ‘sandwich generation’ individuals in Ghana, significantly higher among older and more affluent consumers.
For most, their dependent children are their own, while only 13.0% have dependent children belonging to somebody else.
In terms of financial priorities, income security is the top priority for Ghanaian consumers. This is followed by managing their expenses downward such as putting major expenditure plans on hold, switching to more affordable retail brands, amongst others.
Paying off debt emerged as a 6th ranked priority.
Household Income Spending
Meanwhile, consumption makes up just over half of the Ghanaian household spending, while savings make up a quarter of the spending allocation.
Debt servicing makes up only 9% of household income allocation.
The report furthered that Ghanaians are disciplined regarding debt management.
One in four Ghanaians have had to borrow from friends or family. One in five have however fallen behind on household bills in the last year.
Furthermore, six in 10 dipped into savings to make ends meet. Less than a quarter use a credit card.
