Parental Financial Socialization, Financial Behavior, and Future Plans of University Students in Nepal

Abstract

The data were analyzed using descriptive and inferential statistics based on a total of 304 valid questionnaires. The findings revealed that there were significant differences in future plans, where students from bachelor's degrees opted for international opportunities, and at the same time, higher uncertainty and reliance on luck, while master's students wanted to stay in Nepal and showed more interest in entrepreneurship. Additionally, urban students demonstrated the highest interest in international job opportunities, such as studying and working abroad. In contrast, rural students preferred working in their own country. The financial socialization of parents had a profound impact on the financial behavior of students, with the parents practicing saving and maintaining open financial communication but providing only little guidance on credit cards. Students demonstrate responsible financial behaviors, with price checking being the most prevalent and keeping receipts being the least practiced. Statistical analysis indicates that academic level and family type significantly influence perceived parental financial socialization, while gender and family income impact financial behaviors. However, parents’ academic background, family income, source of income, gender, and residential status showed no significant difference on perceived financial socialization, as well as students’ and fathers’ academic level, residential status, family type showed no significant difference in financial behavior.