A Study on the Impact of Financial Knowledge on Financial Behaviour among College Students

Abstract

Financial literacy has become increasingly important for college students as they are required to make independent financial decisions related to budgeting, saving, debt management and financial planning. The present study examines the impact of financial knowledge on financial behaviour among college students. Specifically, the study aims to evaluate students’ financial knowledge and analyze its influence on their financial behaviour. The study is based on primary data collected from 131 college students through a structured questionnaire using a Likert scale. A quantitative research design and convenience sampling technique were adopted. Data were analyzed using descriptive statistics, reliability analysis, correlation and regression analysis. The findings revealed that students possess a relatively high level of financial knowledge, whereas their financial behaviour remains moderate. Correlation and regression analyses indicated a positive and significant relationship between financial knowledge and financial behaviour, suggesting that financially knowledgeable students are more likely to demonstrate responsible financial practices. The study concludes that financial knowledge plays an important role in shaping students’ financial behaviour. The findings emphasize the need for effective financial literacy programs in higher education institutions to encourage responsible financial decision-making among students.