Buy Now, Think Later: Financial Literacy and Impulse Buying Behavior among College Students in City of Malolos

Abstract

In today's generation, where purchasing is one click away, young Filipino adults seem to set aside the value of proper handling of money in order to possess products that catch their attention. Most of them buy luxuries rather than saving for the future and live in the "you only live once" philosophy. On the other hand, one way to develop wise spending behavior among young adults is to make them financially literate. Unfortunately, being financially literate is slightly seen among Filipino youths today. The main objective of this research was to examine the relationship between financial literacy and impulse buying behavior among college students at Bulacan State University. The study was anchored in Prospect Theory based on an individual's perceived gains and utility. Spearman correlation was employed to determine and analyze the results of 280 college students at Bulacan State University. The results revealed that the financial literacy of college students has a positive and significant relationship with impulse buying behavior. This implies that as their financial literacy increases, their impulse buying behavior increases. In conclusion, Bulacan State University college students value present choices and benefits more than the future.