Applied Financial Learning as a Key Predictor of Financial Self-Management in Higher Education Evidence from Peruvian University Students

Financial literacy among university students is increasingly important in contexts marked by digital payments, accessible credit and growing financial-product complexity. This study analyzes the explanatory relationships between technical-financial knowledge (TFK), perception/attitude toward financial education (PS), practical application of financial knowledge (PAK), and financial self-management (PFS) among Peruvian university students. A total of 422 surveys were collected, and the final PLS-SEM analysis was conducted with 358 complete cases. The model was estimated in ADANCO using consistent PLS for reflective constructs and Mode B for PFS as a formative construct, with 5000 bootstrap replicates. The results show that TFK positively predicts PS (β = 0.711; p < 0.001) and PAK (β = 0.709; p < 0.001). PFS is explained by both PS (β = 0.282; p < 0.001) and, more strongly, PAK (β = 0.558; p < 0.001), with moderate-to-high explanatory power (R2 = 0.568). The total indirect effect of TFK on PFS was significant (β = 0.596; p < 0.001), and the TFK → PAK → PFS pathway was the dominant mechanism. These findings suggest that university financial education should move beyond conceptual content and prioritize practice-oriented learning strategies, including budgeting, savings planning, product comparison and digitally mediated decision-making.