Understanding university students' financial literacy and behaviour the moderating effect of parental influence

Abstract

This research investigates the relationship between financial literacy, parental influence, and financial behaviour among students at university. The study aims to determine whether financial literacy significantly impacts students' savings and spending habits, and whether parental influence moderates this relationship. Using regression analysis on data from 166 students, the results reveal that both financial literacy and parental influence independently contribute to improved financial behaviour, with financial literacy promoting better budgeting, saving, and spending practices. Parental guidance, particularly through discussions and modelling of responsible financial behaviours, further enhances these effects, demonstrating the importance of family support in applying financial knowledge effectively. The study also highlights that the combined influence of both financial literacy and parental support provides a stronger prediction of students’ savings and spending behaviour than either factor alone. This suggests that while financial education is crucial in equipping students with essential financial knowledge, family involvement plays a key role in reinforcing and applying these lessons in daily life. The findings emphasize the need for integrating financial literacy into university curricula, while also encouraging parental involvement in financial discussions to create a supportive environment for students to develop sustainable financial behaviours.