Factors affecting financial behaviour and knowledge using modified theory planned behaviour : a case study of university students

Abstract

The COVID-19 pandemic has had a profound impact on the global economy, leading to high inflation rates and increased household debt. As a result, many people, including university students, are overspending on both necessary and unnecessary expenses. In this study, the researcher aims to investigate the financial behavior and attitudes of university students towards their family's financial practices and environment, summarizing how they perceive their real source of financial knowledge. Additionally, Thailand was ranked 12th out of 70 countries in terms of household debt, and the debt-to-GDP ratio in Q3 2021 reached 89.3 percent based on the study by the Bank of Thailand; hence, this may lead to overspending behaviors. To accomplish this, the researcher employed a quantitative research approach, using the Theory of Planned Behavior (TPB) as an inspired framework to create a conceptual model. The researcher identified four input factors that influence financial behavior among university students: work experience, parental attitudes, financial knowledge, and the investment society environment. The sample consisted of 420 university students in Bangkok Metropolis who completed an online survey. The researcher analyzed the descriptive and inferential statistics using Structural Equation Modeling (SEM). The results show that each of the four input factors has a positive effect on university students' financial behavior and attitudes. Specifically, work experience, parental attitudes, and financial knowledge all have significant and positive impacts on financial behavior, while the investment society environment has a significant but weaker effect. In conclusion, this study provides insights into the factors that shape the financial behavior of university students in Thailand and sheds light on the importance of parental attitudes and financial education in promoting positive financial habits. These findings can be used to inform policy and practice aimed at improving financial literacy and promoting healthy financial behaviors among young adults. Implication of thematic paper: The results of this study indicate an understanding of the social and environmental factors in today's world. This helps in understanding the causes of increasing household debt rates and the major factors that affect and lead university students' behavior. Furthermore, the research clarifies the primary sources of financial knowledge and the factors that effectively influence financial habits.