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

Factors Influencing Financial Behavior of Undergraduate Students: A Systematic Review

(Pages 01-10)

Dudung Ma’ruf Nuris1, Sheerad Sahid2,* and Muhammad Hussin3
1PhD student at Faculty of Education, Universiti Kebangsaan Malaysia, Bangi, Malaysia.
2,3Faculty of Education, Universiti Kebangsaan Malaysia, Bangi, Malaysia.
DOI: https://doi.org/10.55365/1923.x2023.21.1

Abstract:

The lifestyle of undergraduate students in managing finances determines their future in terms of financial management. Good student financial behavior comes from good financial planning and management as well. Students' financial behavior has various forms, including saving behavior, spending behavior, and financial planning. Financial behavior in university students is determined by the income of parents and the level of education of parents. Financial education provided by parents to children will affect student behavior in managing finances. The research focused on determining factors influencing the financial behavior of university students. The authors use methods of the systematic literature review with PRISMA (Preferred Reporting Items for Systematic Reviews and Meta-Analysis). 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 authors conclude that financial behavior can be influenced by 10 (ten) factors in which financial attitude and financial education are the most dominant factor because these factors are the basis of individuals' or students' financial behavior. Suggestions for further research is that research should examine financial behavior in households and other relevant sectors.


Keywords:

Financial Behavior, Undergraduate Students, Financial Management.


JEL Codes:

G02, I22, P34.


How to Cite:

Dudung Ma’ruf Nuris, Sheerad Sahid and Muhammad Hussin. Factors Influencing Financial Behavior of Undergraduate Students: A Systematic Review. [ref]: vol.21.2023. available at: https://refpress.org/ref-vol21-a1/


Licensee REF PressThis is an open access article licensed under the terms of the Creative Commons Attribution Non-Commercial License(http://creativecommons.org/licenses/by-nc/3.0/) which permits unrestricted, non-commercial use, distribution and reproduction inany medium, provided the work is properly cited.

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

FAQs

What are the factors influencing financial behavior of students? ›

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.

What are the factors affecting financial decision-making of 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.

What are the factors that influence financial management? ›

The key factors that influence financial management include firm performance, managers' preferences, asymmetric information, and collateral value. The key factors that influence financial management include efficient management, economic analysis, financial diagnosis, and specialized knowledge.

What are the factors affecting spending behavior of students? ›

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 ...

What is the influence of behavioral finance? ›

Behavioral finance is the study of how psychological influences, such as emotions like fear and greed, as well as conscious and subconscious bias, impact investors' behaviors and decisions.

What are the three types of financial influences? ›

Every business must make three major financial decisions, which are as follows:
  • Choosing an Investment. The investment decision is a financial decision that deals with how a company's cash is invested in various assets. ...
  • Decision on Financing. ...
  • Dividend Decision: ...
  • Factors Impacting Financial Decision. ...
  • Conclusion.

How does financial problems affect college students? ›

Students with fewer money worries perform better in college and are more likely to graduate, while financially stressed students have lower grades and are more likely to drop out.

What are five key factors that affect the choice of financing? ›

All these factors are to be considered before making a choice of source of funds:
  • Cost: ...
  • Financial strength and stability of operations: ...
  • Form of organization and legal status: ...
  • Purpose and time period: ...
  • Risk profile: ...
  • Control: ...
  • Effect on credit worthiness: ...
  • Flexibility and ease:

What are the social factors that influence financial decisions? ›

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.

What are the common factors in finance? ›

Common factors include size (often measured by market capitalization), valuation measures such as price to book value ratio and dividend yield, industries and risk indices.

What are the risk factors affecting financial performance? ›

Also, other factors may affect financial performance, such as leverage, productivity, solvency and assets turnover, and these may change in the face of a crisis. A financial crisis causes imbalance over the economy and affects the business environment.

What are the financial factors? ›

Financial factors consist of financial policies, financial positions and capital structure. It is an important internal factor which has a substantial impact on business functioning and performance. Financial facilities are required to start and operate the organization.

What are the factors that affect the financial management spending and saving habits of students? ›

3 answersFinancial literacy, self-control, and parental socialization are factors that influence students' money management behavior. Financial literacy positively affects money management behavior, as students who understand the importance of saving money tend to have better saving habits.

What are the most common factors that affect students performance? ›

Education researchers generally identify four factors that influence student achievement: family socioeconomic status, time spent on self-study and preparation for classes, time spent on additional work and hobbies, and the institutional environment.

What are 3 factors that may influence your ability to make financial decisions? ›

Personal circ*mstances that influence financial thinking include family structure, health, career choice, and age. Family structure and health affect income needs and risk tolerance. Career choice affects income and wealth or asset accumulation.

What are the factors that affect budgeting behavior? ›

Factors that influence students' budgeting behavior include financial literacy, financial attitude, financial behavior, influence of parents, financial self-efficacy, social economic status, family background, and lifestyle.

What is the likely influence of financial literacy on financial behaviors? ›

Financial illiteracy leads to poor financial behaviour, which includes behaviour on retirement planning (Agnew et al., 2013; Lusardi & Mitchell, 2007), savings and retirement (Bateman et al., 2010), stock market participation (Van Rooij et al., 2011), decisions on investment (Hassan Al-Tamimi & Anood Bin Kalli, 2009) ...

What are the financial behaviors? ›

It can be defined as any human behavior that is relevant to money management. Common financial behaviors include cash, credit and saving behavior.

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