Influence of finance education on financial literacy, attitudes, and behavior of university students in Kathmandu Valley

Abstract

This study examines the influence of finance education on the financial literacy of university students in the context of Kathmandu Valley. The selected independent variables are access to finance education, discussion of money with family, discussion of money with friends, cultural attitudes towards money, family financial background, and academic background. Financial literacy is selected as a dependent variable. The primary source of data is used to assess the opinions of the respondents regarding finance education and the level of financial literacy. The study is based on primary data which were collected from 124 respondents. To achieve the purpose of the study, a structured questionnaire is prepared. The correlation coefficients and regression model are estimated to test the significance and importance of finance education on the financial literacy of university students in the context of Kathmandu Valley. The result shows that access to finance education has a positive effect on financial literacy. It means that greater access to finance education leads to higher levels of financial literacy. Likewise, discussion of money with family has a positive effect on financial literacy. It implies that more frequent discussions about money with family lead to an increase in the level of financial literacy. Similarly, discussion on money with friends has a positive effect on financial literacy. It implies that more frequent discussions on money with friends lead to an increase in the level of financial literacy. Moreover, cultural attitudes towards money has a positive effect on financial literacy. It indicates that more positive cultural attitudes towards money leads to an increase in the level of financial literacy. Furthermore, family financial background has a positive effect on financial literacy indicating that a stronger family financial background leads to an increase in the level of financial literacy. In addition, academic background has a positive effect on financial literacy. It implies that a stronger academic background leads to an increase in the level of financial literacy.