FINANCIAL LITERACY AND ITS IMPACT ON MONEY MANAGEMENT PRACTICES AMONG HIGHER EDUCATION STUDENTS IN MANIPUR

This study examines the relationship between financial literacy and money management practices among college students in Manipur, a northeastern state of India with distinct socio-economic characteristics. Using a quantitative research design with multi-stage stratified random sampling, data were collected from 370 undergraduate and postgraduate students across government colleges, private colleges, and universities in Manipur. The study employed a structured questionnaire to assess financial literacy levels and money management practices across five dimensions: budgeting and planning, saving and spending behaviors, debt management, and financial decision-making. Descriptive statistics revealed concerning below-average financial literacy levels (M = 2.25) and correspondingly poor money management practices across all dimensions (M = 2.26 to 2.41). However, Pearson correlation analysis demonstrated strong positive relationships between financial literacy and all money management dimensions (r = .641 to .764, p < .001). Multiple regression analyses provided compelling evidence that financial literacy significantly predicts money management effectiveness, explaining substantial variance across budgeting and planning (R² = 53.1%), saving and spending behaviors (R² = 58.3%), debt management (R² = 41.1%), financial decision-making (R² = 45.6%), and overall money management practices (R² = 60.8%). All hypotheses were supported at p < .001 significance level with large effect sizes. The findings highlight the critical need for comprehensive financial education programs in higher education institutions and targeted interventions by policymakers to address financial literacy deficits among young adults in northeastern India. This research contributes valuable insights to the limited literature on financial behavior in culturally distinct developing regions and provides an evidence-based foundation for developing effective financial capability interventions.