The role of financial literacy in reducing impulsive buying among college students

Abstract

This study examined the relationship between financial literacy and impulsive buying behavior among college students at St. Mary’s College of Borongan. The research aimed to assess the level of financial literacy among students; determine the frequency of their impulsive buying behavior; identify common triggers behind such behavior; evaluate the relationship between financial literacy and impulsive buying; and identify financial practices that help reduce impulsive spending. A descriptive-correlational research design was employed using a structured and validated questionnaire. The survey measured students’ financial knowledge in areas such as budgeting, saving, credit, and financial planning, as well as their impulsive buying tendencies. Data were analyzed using descriptive statistics and Pearson’s correlation to determine patterns and relationships. The findings revealed that students had a moderate level of financial literacy (M = 3.56) and a moderate level of impulsive buying behavior (M = 3.21). Key triggers of impulsive purchases included emotional states, peer influence, and online advertisements. A significant negative correlation (r = –0.47, p < 0.05) was found between financial literacy and impulsive buying, suggesting that students with greater financial understanding were less likely to make unplanned purchases. Additionally, students identified strategies such as budgeting, delaying purchases, and avoiding shopping apps as effective in managing impulsive buying. The study concludes that enhancing financial literacy plays a crucial role in reducing impulsive spending behaviors among college students. It recommends the integration of financial education into academic programs and the promotion of self-regulation strategies to support students’ long-term financial well-being.