The Effect of Financial Knowledge and Financial Attitudes on Financial Behavior among University Students

Abstract

This study aims to examine financial literacy among university students in Malaysia. Specifically, this study attempts to examine the relationship between financial knowledge and financial attitudes, and also the effects of these variables on financial behavior among university students. Data was gathered from a sample of 370 university students through the survey method. The data was analysed using simple linear regression and multiple regression analysis. The findings reveal that the respondents have moderate level of financial knowledge. Respondents who took Financial Management course have higher level of financial knowledge compared to those who did not take any Financial Management course. Financial knowledge significantly influenced financial attitudes, and financial attitudes significantly influenced financial behavior. On the other hand, financial knowledge does not have any significant influence on financial behavior. This study enriched the literature by identifying factors that influenced financial behavior and provided suggestions to be practiced by universities in developing good financial attitude and financial behavior of students.