FINANCIAL LITERACY AMONG COLLEGE STUDENTS TRIBHUVAN UNIVERSITY OF NEPAL

Abstract

This study employs a descriptive and causal-comparative research design to investigate the level and status of financial literacy among college students at Tribhuvan University of Nepal. It aims to examine the relationship and impact of demographic, educational, and personality variables on financial literacy. A sample of 390 respondents participated in a questionnaire-based survey, and data analysis was conducted using PSPP. Descriptive analysis revealed that females generally exhibit higher risk aversion, more positive financial attitudes, and greater financial literacy than males. Correlation analysis highlighted significant positive relationships between risk aversion, financial attitude, and financial literacy, though family income does not significantly affect financial literacy levels. Regression analysis shows that both risk aversion and financial attitude positively impact financial literacy, with financial attitude having a stronger effect than risk aversion. The study indicates that the overall financial knowledge of students is influenced by various demographic, educational, and personality variables. These findings can inform Nepal Rastra Bank, stakeholders, banking and financial institutions, researchers, and the general public in formulating new policies and rules to enhance financial literacy among students. The government needs to understand and implement effective policies and strategies for financial literacy programs to improve the overall financial condition academically. This can benefit both the nation and individuals. Future research could expand to include students from different levels, cities, and sectors. Additionally, while this study focuses on demographic variables as independent variables, future researchers could incorporate social, economic, and other variables for a more comprehensive analysis.