Factors Influencing Financial Behavior of Undergraduate Students: A Systematic Review - Review of Economics and Finance (2024)

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Factors Influencing Financial Behavior of Undergraduate Students: A Systematic Review - Review of Economics and Finance? ›

The results showed that the factors mentioned in the article that influence financial behavior are financial attitude, financial education, financial planning, financial literacy, financial knowledge, financial socialization, financial self-efficacy, financial skills, financial threat, and demographic factors.

The study found that there is a significant relationship between financial literacy, family influence, and saving attitude with the student's financial management behaviour, contributing to 63.3% of the financial management behaviour of university students.

Factors influencing financial decision-making among students include financial literacy, money ethics, money attitude, time preference, financial experience, financial specialization agents, herding, risk tolerance, overconfidence, regret aversion bias, and human values.

It has been found that financial literacy influences how students control their budgets, handle decreased income, and save for retirement. Additionally, financial knowledge, financial attitude, and locus of control have a significant positive effect on students' financial management behavior.

Factors that influence spending behavior include attitude, family background, lifestyle, financial knowledge, year of study, family financial level, gender, school, perceived ease of use, perceived usefulness, perceived credibility, social influence, enjoyment tendency, impulsive tendency, store crowding, and peers and ...

Common sources of social influence on finances

Family and peer pressure: The people closest to us, such as family and friends, can wield considerable influence over our financial behavior. Their attitudes toward spending, saving and investing can shape our own beliefs and habits.

Family, peers, school and the wider community all impact on student behaviour, and on learning and wellbeing. The way we behave is also influenced by personal characteristics such as age, sex, personality, temperament and mental and physical health.

Some of the most common factors that influence financial decisions include age, marital status, employment status, and the number of household members. Certain factors influence financial decisions more than others.

Poorer financial circ*mstances among undergraduate students are associated with worse academic outcomes. Overall, financial factors can influence students' motivation, stress levels, and access to resources, all of which impact their academic performance.

Factors that influence decision making on financial matters for individuals include the quality of choices made by investors, return, risk, and past performance of stocks, behavioural biases of overconfidence and risk aversion, cognitive, psychological, and behavioral limitations, contextual factors such as accounting ...

Why is it important for college students to manage their finances? ›

Budgeting can help you avoid debt and improve your credit.

If you have received student loans to help with the cost of college or career school, then a budget will help you make the most of the money you've borrowed and can help you determine how long it will take to repay your debt and how much it will cost.

The results showed that the factors mentioned in the article that influence financial behavior are financial attitude, financial education, financial planning, financial literacy, financial knowledge, financial socialization, financial self-efficacy, financial skills, financial threat, and demographic factors.

The insights and recommendations derived from financial services market research can help banks and credit unions develop effective marketing strategies, improve customer satisfaction, and increase profitability.

Socio-economic factors may include parental level of education, parental income, financial and material support by parent, language, parental involvement in child education and peer group in school environment.

Factors affecting students' budgets include their financial status, income, gender, faculty, and class year. Students' expense behavior is influenced by their parents' basic data, such as income, as well as their own income and expenses.

Spending behavior is influenced by a complex interplay of personal and external factors, including income, wealth, financial goals, the economy, cultural norms, and marketing. Understanding these factors can help individuals make more informed decisions about their spending and help them achieve their financial goals.

Factors that affect the budgeting of students include attitudes toward money, financial management capabilities, and spending habits . Financial management capabilities are essential for students' personal and academic success, as they help in organizing their lives and managing their time effectively .