Empowering Gen Z: The Influence of Financial Literacy on the Financial Behavior of College Students

Abstract

Financial behavior plays a crucial role in achieving personal financial well-being, particularly in the context of the digital economy where financial tools and services are increasingly accessible. This study aims to examine the role of financial literacy in shaping the financial behavior of Generation Z college students, with specific alignment to Sustainable Development Goals (SDG) 1: No Poverty, SDG 4: Quality Education, and SDG 8: Decent Work and Economic Growth. Employing a quantitative descriptive correlational research design, data were collected through structured survey questionnaires administered to 100 Gen Z students at UM Panabo College. Findings revealed that participants demonstrated a high level of financial literacy, with a mean score of 3.68 (SD = 0.73), and exhibited positive financial behavior, with a mean score of 3.76 (SD = 0.66). Statistical analysis indicated a significant positive relationship between financial literacy and financial behavior (r = 0.443, p = 0.000), accounting for 19.62% of the variance.
These results led to the rejection of the null hypothesis, confirming that financial literacy significantly influences financial behavior among Gen Z college students. The study concludes that enhancing financial literacy equips students with the knowledge and skills necessary to make responsible financial decisions, thereby improving their financial well-being. Recommendations include encouraging students to actively apply financial knowledge in daily decision-making, while educational institutions, policymakers, and families should strengthen financial literacy programs. Future researchers are advised to explore additional factors that may affect financial behavior, thereby contributing to more comprehensive strategies for financial empowerment among young adults.