Factors Influencing Financial Behavior of Undergraduate Students: A Systematic Review - Review of Economics and Finance (2024)

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Factors Influencing Financial Behavior of Undergraduate Students: A Systematic Review - Review of Economics and Finance? ›

From the results of the research and discussion above, it can be concluded that the factors that influence the financial be- havior of university students are financial attitude, financial education, financial planning, financial literacy, financial knowledge, financial socialization, financial self-efficacy, financial ...

The results obtained in this study indicated that money attitude, financial knowledge, and financial self-efficacy positively and significantly influenced financial management behaviour among university students.

One of the key aspects of behavioral finance studies is the influence of psychological biases. Some common behavioral financial aspects include loss aversion, consensus bias, and familiarity tendencies.

Age, gender, marital status, occupation, qualification, hopelessness, religiosity, financial satisfaction, Retirement plan intention as variable that affect financial literacy [11].

Factors influencing financial decision-making among students include financial literacy, money ethics, money attitude, time preference, financial experience, financial specialization agents, herding, risk tolerance, overconfidence, regret aversion bias, and human values.

Several things can influence your financial decisions. Some of the most common factors that influence financial decisions include age, marital status, employment status, and the number of household members. Certain factors influence financial decisions more than others.

Personal circ*mstances that influence financial thinking include family structure, health, career choice, and age. Family structure and health affect income needs and risk tolerance. Career choice affects income and wealth or asset accumulation.

A cognitive bias is an error in cognition that arises in a person's line of reasoning when making a decision is flawed by personal beliefs. Cognitive errors play a major role in behavioral finance theory and are studied by investors and academics alike.

Influencing factors refer to various internal and external elements that have the potential to impact decisions, behaviors, or outcomes in different contexts. These factors can range from known and predictable aspects to unknown and unpredictable variables that shape the environment in which decisions are made.

What are the financial factors affecting academic performance? ›

Financial factors significantly impact students' academic performance. Research shows that financial stress can lead to lower grades, reduced course loads, and even dropping out of college due to the burden of tuition fees .

The most immediate challenge for most institutions involves cash flow. As institutions lose parking fees, dining outlet sales, and other auxiliary revenues, they also face unexpected expenses, including partial refunds on fees, room, and board, and the need to scale virtual engagement modalities.

The main methods of financial motivation used in business are wages, salaries, performance related pay, profit sharing, and financial fringe benefits. It has a monetary value but does not affect the employee's wage or salary. .

Worries about money lead to ongoing stress, anxiety and even depression; they crowd out the brain's ability to focus on longer-term achievements; they even lead to higher-risk decision-making with potentially disastrous consequences. (As anyone who's taken out a high-interest payday loan can tell you.)

Financial status has been found to have an impact on students' academic performance. Several studies have shown that students from lower socioeconomic backgrounds tend to have lower academic achievement compared to their peers from higher socioeconomic backgrounds .

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Besides starting salary, another critical factor is the institution's completion rate. While students' individual ability and motivation affects their likelihood of completion, research shows that college quality also has an impact on completion rates.

Source Papers (4) The key factors that influence financial management include firm performance, managers' preferences, asymmetric information, and collateral value.

Financial attitude, family background, gender, academic performance, and course of study are significant factors influencing student expenditure. Studies reveal that financial attitude plays a crucial role in shaping spending habits, while family background greatly influences students' financial behavior.

Locus of control, financial attitude, financial self-efficacy, and mental accounting affect financial behavior.

Family, peers, school and the wider community all impact on student behaviour, and on learning and wellbeing. The way we behave is also influenced by personal characteristics such as age, sex, personality, temperament and mental and physical health.