Page 720

www.rsisinternational.org

INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,

MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)

ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XV, Issue II, February 2026

“Investigating the Influence of Financial Literacy on Savings

Behaviour Within College Students of Ernakulam District”

Ms. Namitha N A

, Dr. Presteena Jesna M Jose

Research Scholar, P G Department of Commerce Bharata Mata College (Autonomous), Thrikkakara,

Kochi – 21 Kerala, India

Assistant Professor, P G Department of Commerce Bharata Mata College (Autonomous), Thrikkakara,

Kochi – 21 Kerala, India

DOI:

https://doi.org/10.51583/IJLTEMAS.2026.15020000062

Received: 24 February 2026; Accepted: 02 March 2026; Published: 16 March 2026

ABSTRACT

In today’s fast-paced world, young individuals often engage in excessive spending without fully understanding

their financial limits. Financial literacy has become a crucial subject, particularly for the Gen Z population, as it

directly impacts their financial decision-making. This research examines the level of financial literacy among

college students in the Ernakulam district and its influence on their savings behavior. Financial literacy is

assessed through three key components: financial knowledge, financial attitude, and financial management

skills. The study explores how these independent variables collectively affect savings behavior, which serves as

the dependent variable. Data was collected from 161 college students using a structured questionnaire distributed

via Google Forms, and the results were analyzed using the Statistical Package for Social Sciences (SPSS). The

findings highlight the significance of financial literacy programs in equipping young adults with essential

financial skills, ultimately fostering better financial habits for their future.

Keywords: Financial literacy, Saving behavior, Financial knowledge, Financial attitude, Financial management

skills.

INTRODUCTION

Financial literacy has become an essential competence in today’s rapidly evolving economic environment,

equipping individuals with the ability to make sound financial decisions and ensure long-term financial

wellbeing. According to the Organization for Economic Co-operation and Development (OECD, 2009), financial

literacy is ―a combination of awareness, knowledge, skills, attitude and behaviors necessary to make sound

financial decisions and ultimately achieving individual financial wellbeing. Central to this definition are three

key components: financial knowledge (FK), financial attitude (FA), and financial management skills (FMS),

which form the foundation of this study. Among the many aspects influenced by financial literacy, savings

behavior (SB) plays a crucial role in determining an individual's economic stability. In India, financial literacy

levels remain alarmingly low. Business Standard (2023) reports that only 27% of Indians are financially literate

and a mere 16.7% of students possess basic money management abilities. Moreover, the Asian Development

Bank highlights that just 24% of Indian women and 27% of adults meet the minimum threshold for financial

literacy. These figures underscore the urgency of understanding and improving financial literacy, especially

among young adults. While earlier studies have focused on macro-level determinants of savings behavior—such

as income levels, inflation, and demographic shifts (Xu et al., 2020; Ling, 2021)—there remains a gap in research

exploring micro-level factors, particularly in the youth demographic. College students, who are transitioning into

financial independence, often face complex financial decisions but are frequently overlooked in such studies

(Otto, 2009).This study aims to address this gap by examining the influence of financial literacy on the savings

behavior of college-going students. It specifically investigates whether financial knowledge, financial attitude,

and financial management skills significantly impact students’ saving habits. The research hypothesizes that

there is no significant relationship between each of these financial literacy components and savings behavior. By

testing these assumptions, the study seeks to uncover whether greater financial understanding leads to more

responsible saving practices. The findings are expected to offer valuable insights for educators, policymakers,

Page 721

www.rsisinternational.org

INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,

MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)

ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XV, Issue II, February 2026

and financial institutions in designing targeted financial education initiatives that empower youth to make

informed financial decisions and build a secure financial future.

Research Objectives

• To examine the financial literacy levels among college-going students based on three components: Financial

knowledge, financial attitude and financial management skills.

• To study the influence of financial literacy on savings behavior of college-going students.

METHODOLOGY

The study adopts a quantitative research design to examine the influence of financial literacy levels on the

savings behavior of college-going students in the Ernakulam district. Financial literacy in this context is assessed

through three core components—financial knowledge, financial attitude, and financial management skills—

which serve as the independent variables, while savings behavior is treated as the dependent variable. The study

area is limited to Ernakulam district, and a sample of 161 college students was selected using the convenience

sampling method. Data collection was primarily done through a structured questionnaire developed and

distributed digitally using Google Forms, with responses recorded via Google Sheets. Primary data were

gathered directly from the respondents through this questionnaire, while secondary data were obtained from

relevant journals, books, online articles, newspapers, and websites. The data collected were analyzed using the

Statistical Package for Social Sciences (SPSS), which facilitated the generation of tables and statistical outputs

essential for interpreting the results.

RESULTS AND DISCUSSION

Descriptive Findings

A reliability test confirmed internal consistency, with all four factors showing Cronbach’s Alpha values above

0.7, indicating reliable measurement of the intended constructs.

Financial Knowledge

Respondents generally demonstrate a high level of financial knowledge. Mean and mode scores are high (around

4–5), reflecting strong familiarity with financial concepts.

Financial Attitude

Most respondents show a positive attitude toward saving and investing, with many prepared to save for future

emergencies. This suggests a tendency toward responsible financial behavior.

Financial Management Skills

Respondents exhibit strong financial management skills, focusing on essential habits like budgeting, tracking

expenses, and saving. They prioritize needs over wants, indicating a solid foundation for financial stability and

planning.

Correlation Analysis

All variables (Financial Knowledge, Financial Attitude, Financial Management Skills, and Savings Behavior)

are significantly and positively correlated at the 0.01 level, indicating strong relationships among them.

Regression Analysis

Regression was conducted with Savings Behavior (SB) as the dependent variable and FK, FA, and FMS as

predictors. Key findings include:

Page 722

www.rsisinternational.org

INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,

MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)

ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XV, Issue II, February 2026

• Positive correlation exists between predictors and SB.

• The model explains 56.6% of the variance in SB (R² = 0.566).

• Durbin-Watson statistic = 2.149, indicating no autocorrelation.

• The model is moderately strong and reliable.

• Financial Management Skills have the strongest influence on SB (β = 0.48), followed by FK and FA.

These results suggest that enhancing financial knowledge, attitudes, and management skills can significantly

improve savings behavior.

Validated Model

CONCLUSION

This study investigates the influence of financial literacy on the savings behavior of college- going students in

Ernakulam district, focusing on three key components of financial literacy: financial knowledge, financial

attitude, and financial management skills. The findings reveal that financial literacy significantly impacts

students' savings behavior, with financial knowledge and financial management skills being the strongest

predictors, while financial attitude plays a comparatively lesser role. These results highlight the importance of

enhancing financial literacy among college students to foster better savings habits, which can contribute to

longterm financial security. Future research could expand the geographical scope to include students from

diverse regions, allowing for comparisons of financial literacy's influence on savings behavior across different

socioeconomic and cultural contexts. Additionally, longitudinal studies could provide deeper insights into how

financial literacy impacts savings behavior over time, especially as students enter the workforce. Exploring the

role of digital financial tools and online resources in shaping financial literacy and savings habits among young

adults, as well as conducting comparative studies between college students and working professionals, could

further enrich our understanding of how financial literacy influences savings behavior at different life stages.

REFERENCES

1. Alshebami, A. S., & Aldhyani, T. H. H. (2022). The interplay of social influence, financial literacy, and

saving behaviour among Saudi youth and the moderating effect of self-control. Sustainability, 14(14),

Article 8780.

https://doi.org/10.3390/su14148780

2. Chakravorty, P., & Sharma, S. (2022). Financial literacy among college students: A study in some selected

area of Guwahati. Specialusis Ugdymas, 1(43), 4988–4994.

3. Chawla, D., Bhatia, S., & Singh, S. (2022). Parental influence, financial literacy and investment behaviour

of young adults. Journal of Indian Business Research, 14(4), 520–539.

https://doi.org/10.1108/JIBR-

102021-0357

0.48

0.33

0.40

Page 723

www.rsisinternational.org

INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,

MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)

ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XV, Issue II, February 2026

4. Elnadi, M., & Gheith, M. (2021). Entrepreneurial ecosystem, entrepreneurial self-efficacy, and

entrepreneurial intention in higher education: Evidence from Saudi Arabia. International Journal of

Management Education, 19, Article 100458.

https://doi.org/10.1016/j.ijme.2021.100458

5. Godwin, A., Rihan, A., Wilson, A., & P. J., A. (2023). A study on personal finance management system

among youngsters with special reference to Ernakulam district. Journal of Finance and Management, 5(2),

120–135.

6. Mpaata, E., Koske, N., & Saina, E. (2021). Does self-control moderate financial literacy and savings

behavior relationship? A case of micro and small enterprise owners. Current Psychology. Advance online

publication.

https://doi.org/10.1007/s12144-021-01911-y

7. Owusu, G. M. Y., Ossei Kwakye, T., & Duah, H. (2024). The propensity towards indebtedness and savings

behaviour of undergraduate students: The moderating role of financial literacy. Journal of Applied

Research in Higher Education, 16(2), 583–596. https://doi.org/10.1108/JARHE-11-2022-0340

8. Pandey, A., Ashta, A., Spiegelman, E., & Sutan, A. (2020). Catch them young: Impact of financial

socialization, financial literacy and attitude towards money on financial well-being of young adults.

International Journal of Consumer Studies, 44(6), 531–544.

https://doi.org/10.1111/ijcs.12583

9. Pahlevan Sharif, S., Ahadzadeh, A. S., & Turner, J. J. (2020). Gender differences in financial literacy and

financial behaviour among young adults: The role of parents and information seeking. Journal of Family

and Economic Issues, 41(4), 672–690. https://doi.org/10.1007/s10834-020-09664-2

Ethical Approval

This is to certify that the research study titled “Investigating the Influence of Financial Literacy on Savings

Behaviour Within College Students of Ernakulam District” has obtained ethical approval from the concerned

authority/institution. The study was conducted in accordance with standard research ethical guidelines. The

research did not involve any harm to human participants or animals, and informed consent was obtained

wherever applicable.

Name: Namitha N A_________________________

Designation: Research Scholar________________________

P G Department of Commerce

Bharata Mata College (Autonomous) Ernakulam

Name: Presteena Jesna M Jose Designation: Assistant Professor

P G Department of Commerce

Bharata Mata College (Autonomous) Ernakulam