Factors affecting financial decisions of university students: evidence from Pakistan

Abstract

Purpose

This study examined the factors affecting university students' financial decisions in Pakistan.

Design/methodology/approach

Structural equation models were used to analyze data from 300 university students using a questionnaire. Students' financial decisions were used as the dependent variable, while financial literacy, money ethics, money attitude, time preference, financial experience, and financial specialization agents were the independent variables.

Findings

Resultantly, power, personal financial literacy, achievement, financial behavior, avoidance, reward for efforts, financial experience, financial attitude, financial socialization agents, and time preference influence the students' financial decisions.

Practical implications

The findings are useful for financial and educational institutions and policymakers who design academic courses.

Originality/value

This study measured the effects of several critical contextual areas regarding financial literacy and students' decisions in Pakistani universities.

Citation

Khurshid, M., Zahid, R.M.A. and Nisa, M.U. (2024), "Factors affecting financial decisions of university students: evidence from Pakistan", Managerial Finance, Vol. 50 No. 2, pp. 297-312. https://doi.org/10.1108/MF-05-2021-0207