Influence of Financial Literacy Programs on Personal Financial Planning Behaviour among Nepalese Youth

Abstract

Growing attention has been given to financial literacy as a key element in improving financial behaviour among young populations. In Nepal, youth aged 16 to 35 are increasingly exposed to formal financial systems, yet structured financial planning remains uneven. This study, guided by Human Capital Theory, examines how such programs influence personal financial planning behaviour and whether age changes this relationship. A quantitative cross-sectional design was used for the analysis. Data were collected from 384 youths using a structured questionnaire. The instrument measured financial literacy program exposure, financial planning behaviour, and selected demographic variables. Regression results indicate that financial literacy programs have a significant positive effect on financial planning behaviour (β = 0.451, p < .001). When age was introduced as a moderating variable, the explanatory power of the model improved. The interaction effect was statistically significant, showing that age strengthens the relationship. In particular, respondents above 25 years demonstrated better application of financial knowledge in planning activities. The findings suggest that financial literacy initiatives are useful, but their effectiveness varies across age groups. This study highlights the need for age sensitive program design. Policy makers and program developers should focus on behaviour oriented strategies rather than only knowledge delivery.