Money Management Practices of College Students in Kathmandu Valley

Abstract

This study examines money management practices of college student in Kathmandu valley. Money management practice is the dependable variable. The independent variables are financial literacy, financial socialization, peer influence, spending behavior and academic pressure. The primary source of data is used to assess the opinions of the respondents regarding the money management practices of college student in Kathmandu valley. The study is based on primary data of 125 respondents. To achieve the purpose of the study, structured questionnaire is prepared. The correlation coefficients and regression models are estimated to test the different money management practices of college student in Kathmandu valley. The result shows that financial literacy has a positive impact on student money management practices. It indicates that students with better financial literacy are more capable of managing their finances effectively. Likewise, financial socialization has a positive impact on money management practices. It shows that increase in financial socialization leads to better money management practices. Similarly, peer influence has a negative impact on money management practices. It indicates that higher the misguided peer influence, poor would be the money management practices. Further, spending behavior has a positive impact on money management practices. It indicates that controlled and thoughtful spending practices contributes to better financial management practices. Moreover, academic pressure has a negative impact on money management practices. It indicates that higher the academic pressure, poor would be the money management practices.