The Determinants of Financial Behavior of the Final-year Undergraduates of the University of Sri Jayewardenepura

Abstract

The potentiality of an individual to manage their financial assets has a substantial influence on their quality of life in a culture where financial issues frequently take precedence over commercial ones. Among other social groups, undergraduates are significant as they are navigating the dynamic financial landscape. While a large number of scholars worldwide have examined the factors that impact financial behavior of undergraduates, Sri Lanka has paid less attention to this area of research. By analyzing the underlying determinants that influence financial behavior of undergraduates and concentrating on final-year students at the University of Sri Jayewardenepura, Sri Lanka, this study seeks to contribute to this existing gap. 247 undergraduates from five faculties were chosen as the sample through simple random sampling. Using a web-based structured questionnaire built on a five-point Likert scale, the researchers gathered data. Partial Least Square-Structural Equation Modeling (PLS-SEM) was deployed to analyze the phenomena under consideration. Financial Literacy, Financial Attitude, and Financial Self-efficacy have been indemnified as significant and positively influencing determinants of undergraduates’ financial behavior. Furthermore, the most significant determinant is financial literacy (r = 0.62, P = 0.000) in relation to the University of Sri Jayewardenepura. In order to get more diversified results, the researcher encourages future studies to concentrate on different state and private university demographics and conduct cross analyses. Thus, the study provides valuable implications for policymakers to the creation of efficient financial policies that are distinctive to this particular demography.