The Effect of Financial Literacy on Students’ Financial Management Behavior

The dynamic development of the modern economy requires university students to possess sound financial management skills. However, preliminary observations indicate that students’ theoretical understanding of finance is not always reflected in their daily financial behavior, as evidenced by consumptive tendencies and unplanned spending. This study aims to examine the effect of financial literacy on the financial management behavior of Development Economics students at the Faculty of Economics and Business, Nusa Cendana University. This study employs a quantitative causal research design. The population comprises active students enrolled between 2022 and 2025. The sample is determined using proportionate stratified random sampling based on the Slovin formula. Primary data are collected through a Likert-scale questionnaire and analyzed using simple linear regression. The findings indicate that financial literacy has a positive and significant effect on students’ financial management behavior. These results suggest that students with higher levels of financial literacy tend to manage expenses more systematically, save more consistently, and make more rational and responsible financial decisions in their daily lives.