FINANCIAL LITERACY AND FINANCIAL BEHAVIOUR OF BUSINESS STUDENTS IN GORKHA DISTRICT

Abstract

The general objective of this study is to examine the financial literacy and financial behaviour of business students in Gorkha district. The specific objectives of this study are: to examine the current state of financial literacy of business students in Gorkha district, to analyze the relationship between financial literacy and financial behavior of business students in Gorkha district and to analyze the impact of financial literacy on financial behavior of business students in Gorkha district. This study employed descriptive and causal comparative research designs to deal with the fundamental issues of the study. The study has considered 400 samples for conducting the study through convenience sampling method. A structured questionnaire was prepared and used to collect information regarding various dimensions of financial literacy and saving behavior. Descriptive statistics, ANOVA, Pearson’s correlation, multiple linear regression were used to make analysis of data. The findings of this study affirm a robust connection between financial literacy and financial behaviour. Financial factors, represented by financial knowledge, financial behavior, financial attitude, financial awareness, and financial skill, collectively contribute to the financial behaviour. These results underscore the pivotal role that financial literacy plays in advancing financial behaviour and student's socio-economic status. Among the financial dimensions analyzed, Financial Behavior, Financial Attitude, Financial Awareness, and Financial Skill were found to have significant and positive impacts on financial behaviour. This suggests that promoting positive financial behaviors, fostering a favorable financial attitude, increasing financial awareness, and enhancing financial skills can significantly enhance the financial behaviour. These findings provide actionable insights for policymakers and organizations aiming to design effective financial literacy programs. The most important motives of saving for student were savings for emergencies, for fulfillment of daily needs, for medical treatment and for travelling. In this study, financial behavior and financial literacy are the influential factor of saving behavior of the students. It concluded that there is positive significant relationship between the financial literacy on saving behaviour .