:Low level of financial literacy among the young workforce has remained a lingering problem,especially in developing countries. This has been pointed out as one of the causes of poor personal financialmanagement practice. This problem has hampered the efforts of various governments and institutions inthis region geared towards financial inclusion and the overall economic wellbeing of the citizens. Moststudies in this area focused on the financial literacy level of people rather than the effect on their behaviour.This study is an attempt examine the effect of financial literacy level on spending behaviour of 30 youngadults from public sector organizations. The study employed the standard questions for assessing theknowledge level of respondents. The questions test their understanding of simple and compoundinterest,inflation and portfolio diversification. For the spending behaviour, thePlanned Behaviour Theory(PBT) proposed by Icek Ajzen (1985) as a theoretical framework for measuring spending behaviour usingthe respondents preparation of budget and personal pre-retirement savings account as proxies. Data wascollected using a structured questionnaire . Descriptive statistics and multiple regression was used toanalyze thedata. The result showed that there is a positive correlation between the level of financial literacyand the spending behaviour of therespondents. The less the knowledge of financial management the peoplehave, the higher the risk of poor spendingbehaviour. The conclusion was drawn to say that more work isneeded to equip the youth especially on the art of financial management.
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