Psychosocial Factors Determining Long-Term Financial Planning Tendencies of University Students: Anxiety About the Future and Financial Socialization Within the Family

Abstract

Backgrounds: The psychosocial factors, shaped by young people’s financial decisions, are heavily influenced by macroeconomic uncertainties, global inflationary pressures, and contractions in the labor market. Financial literature and traditional theories tend to explain individuals’ long-term financial decisions primarily through their level of financial literacy. In contrast, behavioral finance literature argues that these decisions cannot be explained solely by the level of financial literacy. Variables such as psychological state and sociological upbringing also influence the shaping of these decisions. Objectives: This study aims to identify the factors determining the long-term financial planning tendencies of associate degree students in construction inspection and the actual role of financial knowledge in this process, from a behavioral finance perspective. Methodology: The research sample consists of associate degree students. Data were collected through a questionnaire. Long-term financial planning, future anxiety, and family financial socialization variables were measured using a 5-point Likert scale. Pearson correlation, independent samples t-test, and multiple linear regression analyses were conducted using Jamovi statistical software. Findings: Correlation analyses showed moderate negative correlations between future anxiety and financial planning, and strong positive correlations between intra-family financial socialization and planning. In the regression analysis, intra-family financial socialization was found to be the only significant variable predicting long-term planning. Conclusions: The findings indicate that strategies that consider family-related factors are needed in integrating young people into rational financial systems. The findings of this research can be used to develop recommendations for macro-level education policies and micro-level policies for families and individuals.