Mediating Role of Financial Literacy on Financial Behavior and Financial Sustainability

Abstract

This paper investigates the mediating role of financial literacy on financial behavior and financial sustainability of the College of Business and Accountancy students. Specifically, it aims to determine the relationship between financial behavior and financial sustainability with a mediation of financial literacy. The study is quantitative and uses a cross-sectional as its research design. Employed data gathering with 371 students participating by answering a printed survey questionnaire that is adapted with different validated research instruments. The findings revealed that there is a moderate, positive, significant relationship between students’ financial behavior and financial sustainability, with a weak positive significant mediation role of financial literacy. In conclusion, results suggest that it is financial literacy through either knowledge, attitude, or savings that structures the relationship between financial behavior and financial sustainability. Moreover, academic institutions may further explore ways to improve the curriculum programs to align with the students’ needs, and instill not just knowledge but a habit.Future researchers exploring similar topics may gain insights into the role of financial literacy on financial behavior and financial sustainability through the data and analysis provided in this study. This research may also support other investigations by offering relevant literature.