Impact of Financial Literacy on Spending and Saving Behavior Among College Students

Abstract - This review examines the overall effect of financial literacy on saving and spending habits among university students. Financial literacy, which encompasses education in topics like money management for borrowing, interest, and budgeting, is increasingly being recognized as a need for young people who are faced with sophisticated financial problems. There is uniform evidence that always shows that there is a robust connection between more financial literacy and better financial conduct for university students.Studies indicate that financially educated college students are more careful with their spending, less likely to spend impulsively, and have a budget or spending plan. This is likely to result in reduced utilization of high-cost credit and fewer cases of overspending. Second, financial knowledge positively impacts savings behavior, and students are more likely to save a percentage of their earnings on a regular basis, usually for specific purposes such as emergencies, education, or future needs.On the other hand, inadequate financial education can lead to adverse outcomes such as high debt, poor credit management, and unintended spending. The report stresses the necessity of widespread financial education initiatives among college students in order to enhance their financial literacy so that they can make good financial choices, become financially healthy, and plan for the future. Key Words: Financial literacy, university students, saving, spending, budgeting, money management, credit, financial education, debt, financial behavior.