Financial behavior and problems among university students: Need for financial education

According to Jariah Masud (2004),

Many students rely on loans to get them through college. Yet, sometimes students borrow
too much money while in school. Excess loan money leads to debt that students must pay back
after graduation delaying other financial goals. With the proper educational support about living
independently, students can reduce their chance of obtaining unnecessary debt from educational
loans. Young adults generally learn their skills from parents and teachers as children. However,
parents often overlook teaching financial skills, such as budgeting and investing, while their
children are still living at home. Instead, children are forced to learn how to handle their money
when entering college and sometimes they make mistakes that will cost them several years of
repayment of loans. This study examines what kinds of financial problems students face. By
knowing what problems students encounter, it is possible for educators to offer a course that
teaches the financial skills necessary to overcome these problems. The participants were asked to
indicate what financial education they would be interested in if offered. Nearly all of the students
expressed an interest in learning about financial management.
Link:https://www.researchgate.net/publication/228404924_Financial_behavior_and_problems_a
mong_university_students_Need_for_financial_education?
fbclid=IwAR1mcZPenneCMvjuujHA6rcuM3Ttip-u8FVsTaMDM9RZ8CHsstlmkipJ3Z8

A literature review on the effectiveness of financial education

According to Matthew Martin (2007)
Abstract
This survey summarizes current research on financial literacy efforts. Because most
financial literacy programs are relatively new, much of the literature reviewed here is also new
and part of a field that is still developing as a program of research. However, we can conclude
that financial education is necessary and that many existing approaches are effective. Among the
findings are that some households make mistakes with personal finance decisions; mistakes are
more common for low income and less educated households; there is a causal connection
between increases in financial knowledge and financial behavior; and the benefits of financial
education appear to span a number of areas including retirement planning, savings,
homeownership, and credit use.
Link: https://ideas.repec.org/p/fip/fedrwp/07-03.html
Financial education level of high school students and its economic reflections
According to Tarcísio Pedro DaSilva (2017),
This research contributes to the understanding of the level of financial education of high
school students from public schools, as well as verifying how their financial knowledge has been
generated, providing a view of the gaps in financial education with which these students are able
to attend undergraduate courses later. The objective of the research was to determine the level of
financial education of high school students from public schools, according to individual,
demographic and socializing aspects. The research methodology was characterized as descriptive
regarding procedures such as survey and the approach of the quantitative nature of the problem.
The research population included 4698 high school students from 14 public schools in the city of
Blumenau. In the data processing, the Kruskal–Wallis and chi-square tests were used. The results
indicate that there is an effective financial education among young high school students, which
can be noticed in findings such as: some of the young are not obliged to explain to parents where
they are spending their financial resources; students have acquired, largely, their financial
knowledge with parents and relatives, and in day-to-day practices, but there is little dialog in the
family on financial matters. The financial knowledge coming from the school is low, requiring
an improvement in the quality of this knowledge at this stage or in the future, including
undergraduate courses. Finally, potential workers may cause social problems through their
inability to manage their resources and/or the expenses of their families.
Link:https://www.sciencedirect.com/science/article/pii/S0080210717300924?
fbclid=IwAR3z1usv2Bkl4d1R1KinTIniUBTHU8SJgCbFzu7XKDTCCKALcLJuTw-wqoA

Financial stress and its impact on first year students

According to Fosnacht and Dong (2013)
Abstract
This study examined the relationship between undergraduate engagement and financial
stress coping strategies. The study found that students who evidenced financial stress perceived a
less supportive campus environment but tended to participate in more academically beneficial
activities. The result incite that magnitude of the impact of financial stress varied by the type of
financial stress coping strategy used.
Link: http://cpr.indiana.edu/uploads/ASHE13FosnachtDongFinancialstress.pdf
Poor students face massive financial stress
According to Pauline Machika and Bernadette Johnson (2014)
Institutions of higher learning need to understand the full impact of the conditions of
poverty under which students live, think and learn while studying for a degree or diploma — and
how these conditions affect their academic success. Entry into tertiary education for students
from poor backgrounds is an opportunity to change their economic status at a personal and
family level. But this becomes difficult to achieve when their economic conditions impact on
their ability to achieve academic success. Without adequate financial resources available in
institutions of higher learning, students' experiences of poverty may be only marginally
alleviated, which merely extends and in effect reproduces systemic conditions of poverty. This
article is partly informed by research based on semi-structured interviews with students
concerning their experiences on achieving academic success. Empirical research Mmaselloe
Sekhukhune conducted in 2008 for his master's thesis indicated that many poor students from
low-income households do not have enough funds to afford food, and this has a negative impact
on their academic performance. Five of the 10 students who participated in his study had to
terminate their studies because the National Student Financial Aid Scheme (NSFAS) did not pay
all their outstanding fees. They could not find ways to pay outstanding fees and were therefore
not in a position to receive their results. They had to have these results to register for the next
academic year. Research also published in 2008 by Barbara Jones, Gonda Coetzee, Tracy Bailey
and Sharman Wickham supported these findings. They wrote that inadequate financial resources
constitute one of the most important reasons cited for students dropping out of university.
Though this is supported very strongly by international research literature, it does not
explain why so many students who are financially stable also drop out of university. Here
Vincent Tinto's 2003 findings are important: in the context of higher education, the notion of
poverty must be expanded because it encompasses the entire nature of the teaching and learning
environment. The dimensions of poverty here may be thought of as an individuals' financial
resources, the family's financial resources or the number of dependents, material resources such
as the kind of accommodation students occupy, the physical conditions under which students
learn on campus, students' access to health care, students' wellbeing, the sociocultural resources
that are related to students' academic background and the sustainability of these resources. Under
a combination of these factors, individuals' energies and efforts for sustaining themselves will
not be effective for their survival, which can cause a great deal of psychological distress.
Consequently, it is clearly important for universities to understand what the needs of financially
under-resourced students are so as to best support their academic needs. But South African
higher education institutions face their own challenges
Link: https://mg.co.za/article/2014-04-08-poor-students-face-massive-financial-stress?
fbclid=IwAR2Vn3bX-OBLI6PGL6cGPa4NRN833FG5IVEYbE_JnM1_k7kSH-vKt6Q546M
Student Financial Problems
According to Robin McDaniel (2019)
Many students accumulate debt before they realize what's happening, and it may be
difficult to start digging your way out of debt once you graduate. According to the Institute for
College Access & Success, debt levels for students pursuing a degree in 2016 ranged from a low
of $4,600 to a high of $59,100. That debt can lead to financial problems that follow students for
years--even decades--after graduation.
College tuition and fees are large expenses for students. A full-time college student might
spend thousands of dollars each term for credit hours, campus parking and books. Many times,
these students do not realize they could apply for federal Pell grants to cover many of these
expenditures. Pell grant recipients must meet certain income requirements, but scholarships are
often available for students not eligible for those grants. Find out more through your school
website or counseling office or on websites such as Studentscholarships.org. Avoid parking fees
by carpooling with other students when possible and purchasing books online, in an off-campus,
discount bookstore or from other students to save money. And always check with your instructor
before buying books to make sure you actually need them for class. Supplies such as backpacks,
pencils and notebooks are usually available at a discounted rate in dollar or outlet stores. Online
you can find financial problem among student’s essays or other info to help you in your quest.
Link: https://www.theclassroom.com/student-financial-problems-13608629.html

The impact of financial difficulties and student financial assistance on university studies
According to Valérie Vierstraete (2013),
Around 30% of students registered for an undergraduate program leave without acquiring
a degree or diploma. While several studies have attempted to understand the underlying causes
of university dropouts, some questions remain. For example, it has been established that financial
problems contribute to dropping out, but it is unclear how different methods for financing
postsecondary education influence persistence and academic success in university. This research
sought to analyze the relationship between student financial assistance, institutional bursaries and
co-op placements on the one hand, and persistence and academic success at university on the
other. The results of the research showed that co-op placements had a positive impact on
university persistence, as did other funding sources such as merit scholarships. However, Québec
government loans appeared to have a negative impact on university success, due to the fact that
these loans contribute to increasing student debt. This study helps us to understand that the
current student financial assistance system will need to undergo certain changes in order to
positively impact university success. For example, to foster university persistence, the current
need-based bursary system could be enhanced through the addition of merit-based bursaries.
Link: http://www.frqsc.gouv.qc.ca/en/partenariat/nos-resultats-de-recherche/histoire/the-impact-
of-financial-difficulties-and-student-financial-assistance-on-university-studies-kpb7iqu41428414
FINANCIAL PROBLEM AMONG STUDENT
According to hemilton96wic (2015)
Further studies involve loans, money and stress. There is more to it. Some even takes
advantages from students from such reason. Even so, there are so much ways or steps to make it
less stressful. First of all, we need to make money planning’s before buying anything. Do some
surveys. It is so that we would not buy anything out of the budgets. We should know how to
separates between things that we want or a must have. Due to culture shock, students become
more excited about the new university life that they tend to explore without any boundaries.
Secondly, buying online things should be prevented. Especially towards accessories and
clothing. This is so that we would not be trick to schemes for high prices for low quality stocks.
But it is alright if it is a book. They fail to do the management and flow of their money. They do
not have the skill to manage their own money. They do not ensure that the money well spent and
not misuse. This problems are common among students attempting to balanced small budgets
with living expenses. Some students are not matured enough to handle finances and they
overspend. Next, as a university student, they have to face many problem. One of the most
common problem is difficulty in paying college fees. Some of the students did not get any loan
or scholarship, so they have to depend on their they parents. For those who came from poor
background they are forced to work to gain extra money to pay their fee. For students who are
not able to balance between work and academic, this will definitely effect their studies. It will
eventually cause their CGPA to drop and for more serious cases. Every college do opens
scholarships to student who achieved good pointers for every semester. Aside from that, almost
of students not yet to master managing financial. They were not aware on how to manage their
pocket money while they spent their for non-necessary things or overspend and living away from
their family causes of the financial problems among college student. Almost all college students
opt to take food at outside such as fast food (PIZZA HUT, KFC, MCD) and restaurants, because
food in their cafeteria not worth it. Food in cafeteria tend to be expensive and don’t have quality.
Beside that, student are not allowed to cook in their hostel, so they rather buy food from outside
even though it’s more expensive. Based on the conclusion of financial problem among student
are they have many problem by the student? They can’t take it slightly about this problems. They
still have to find solution so that they won’t regret in future. Students also must take an example
of other effected students who had gone threw money problem as a lesson. In conclusion,
students must have ability to plan their money to avoid financial problems from occurring.
Link: https://hemilton96wic.wordpress.com/author/hemilton96wic/
Effects of financial stress on academic performance
According to Marisol Medina (2013),
Not being able to pay your bills may affect more than just your credit, a new study
suggests. According to a new study led by Harvard, Princeton and Warwick University scientists,
financial hardship may directly influence a person’s cognitive ability. The study followed Indian
farmers that are paid once a year upon selling off their harvest and found the farmers’ cognitive
abilities to be compromised significantly before receiving their pay. The farmers were tested at a
moment of accumulating debt before selling their harvest and once again after receiving a lump
sum for the year. The results were that once their financial worries had been resolved, the same
farmers scored much higher than they had previously. The study connects poverty to low
cognitive ability and concludes that financial stress affects a poor individual’s IQ more than a
well-off individual’s. Valentina Lee, Assistant Professor of Psychology at FIU, studies stress and
its effects. Lee refers to two different types of stress: stressors and strains. Stressors are the
conditions that require some sort of adaptation from the individual and strains are the
consequences of facing those stressors. Financial stress is, like many others, a significant
stressor, not only among students but also working professionals. We would expect it to have
similar psychological, physical, and behavioral strains to that of many other commonly studied
stressors such as workload or conflict at work, ” said Lee in an email statement. Lee refers to
commonly experienced strains, such as depression, and affirms that any form of stressor can
have an impact on a person’s cognitive resources. She cites sleeplessness as a common strain
experienced among many as a stressor that can leave someone unable to function at full mental
capacity at work or school. As a professor, Lee sees that some students appear tired and have
difficulty with time flexibility, something she tries to accommodate by offering plentiful
opportunities for extra credit points and exam reviews.
Link: http://panthernow.com/2013/09/17/effects-of-financial-stress-on-academic-performance/
FINANCIAL LITERACY AMONG SENIOR HIGH SCHOOL STUDENTS
According to ARMSTRONG OPOKU (2015)
ABSTRACT
The study assesses the level of financial literacy of Senior High School students in the Kumasi
Metropolis. The study surveyed 320 students to investigate their level of financial literacy
through the administration of questionnaires. Findings from the study reveal that students need to
improve their personal finance knowledge. The results show that the students answered about
48.7% of the questions correctly. The results also reveal that many of the students are seen to be
familiar with issues relating to simple interest, compounding and loan guarantee. In contrast, the
students are less knowledgeable and inexperienced with issues concerning personal financial
planning, budgeting and overdraft. The incompetency exhibited by the senior high school
students therefore limits their ability to make sound financial decisions and hence more likely to
have financial related issues in the real world. The low level of financial literacy could also make
small financial issues become overwhelming which could turn into financial stress and
consequently affects the other aspects of live such as personal relationships performance at work.
The low level of financial literacy and its consequences then shows the need for stakeholders in
educational system to put policies in place to ensure that the level of financial literacy among
senior high students in Ghana is improved since financial literacy has essential implication for
future behavior. It is recommended that personal finance literacy course is well elaborated in the
academic curriculum of senior high schools. Also, the national financial literacy week should be
extended.
Link: http://ir.knust.edu.gh/bitstream/123456789/8511/1/ARMSTRONG%20OPOKU.pdf