MONEY MATTERS: FINANCIAL LITERACY AND MANAGEMENT BEHAVIOR AMONG KARACHI’S UNIVERSITY STUDENTS

Abstract

This study aimed to study the relationship of financial literacy, financial planning and market knowledge with financial management behavior among students of universities in Karachi Pakistan. For this, data was collected from a purposive sample of 429 university students (241 males and 188 females) with a mean age of 22.85 years (SD=3.18). The Financial Literacy Scale and The Financial Management Behavior Scale were utilized to measure these variables. The Pearson product moment correlation and regression analysis were used to test the purposed hypotheses. The results showed that all three factors were linked to financial management. Financial literacy had a positive correlation (r =.355 p <.05) and it was also found to be a significant (F= 61.448, P<.000) and positive predictor of financial management behavior. Financial planning also found to have significant link (r =.161 p <.05) and also a significant (F= 11.368, P<.001) and positive predictor of financial management behavior. Similarly investment market knowledge also showed a positive correlation (r =.355 p <.05) and was a significant (F= 61.368, P<.000) and positive predictor of financial management behavior. These findings suggest that when people understand finance better they tend to manage their money effectively. The evidence supports the idea that improving financial literacy can lead to smarter financial choices. The findings carry useful implications for financial educators, university policymakers and future researchers working on youth financial wellbeing.