The study explores the interplay between financial capability dimensions—financial literacy, self-efficacy, and savings attitudes—and household savings, measured by financial health in Nigeria, using financial inclusion as a contextual framework. The investigation assesses these relationships within formal, non-formal, and informal financial institutions while examining the demographic and socioeconomic moderators. The secondary data source includes a robust dataset of 31,199 households from Nigeria’s six geopolitical zones, collected during the 2023 national financial inclusion survey. The study adopted a quasi-experimental design and applied Probit regression analysis to evaluate the effects of financial capability dimensions. Hypotheses were tested at 5% significance, rejecting null hypotheses when p-values were below 0.05. Results indicated that financial literacy positively impacts savings across financial institutions, with educated households exhibiting higher savings behavior. Household size inversely correlates with savings, as larger households face consumption pressures, limiting disposable income. Additionally, proximity to financial products significantly influences savings outcomes, especially in rural regions. However, socioeconomic factors such as income and employment showed mixed results, suggesting complex underlying dynamics.Key findings underscore regional disparities in financial inclusion. Urban households, particularly in the South-West, benefit more from formal financial institutions than rural counterparts who rely on informal mechanisms like cooperative societies. Furthermore, gender and age demographics revealed that women and older individuals favored informal savings channels.A major recommendation is the expansion of targeted financial literacy programs tailored to women and rural populations to enhance informed financial decision-making and improve household savings outcomes.

Keywords: Financial Capability, Savings Behavior, Financial Literacy, Financial Inclusion, Probit Regression.