Financial Literacy for Effective Financial Planning among Sri Lankan University Students
DOI:
https://doi.org/10.31357/afr.v2i02.7880Keywords:
Financial Literacy, Financial Literac, Financial Litera, Financial Liter, Financial Lite, Financial Lit, Financial Li, Financial L, Financial, Financia, Financi, Financ, Finan, Fina, Fin, Fi, F, Financial Knowledge, Financial Knowledg, Financial Knowled, Financial Knowle, Financial Knowl, Financial Know, Financial Kno, Financial Kn, Financial K, Financial Financia, Financial Attitude, Financial Attitud, Financial Behaviour, Financial Behaviou, Financial Planning, Financial Plannin, Financial PlanniAbstract
This study examines the impact of the financial literacy
level on the effectiveness of financial planning. Survey
among a sample of 100 undergraduates in Sri Lankan
university system was used to gather data. Purpose of the study is to identify whether the financial literacy is playing a vital role in financial planning of university students. Financial literacy was measured by Knowledge level on financial concepts, financial risk, financial system components, investments, loans and saving products. Effectiveness of Financial planning was measured through the questions relevant to cash management, saving and investment planning and execution in debt management. Regression Analysis through E-Views has been used to major statistical analysis. Through the analysis, it was founded that financial knowledge about financial risk, financial concepts, savings, investments and loans are leading a person towards a better financial behavior and planning. However, the knowledge about financial system components is not having a significant impact on effectiveness of financial planning. Results of the research study would assist to understand the importance of financial knowledge and literacy on personal financial success which would lead towards a successful nation as well.
