The Impact of the Financial Literacy on the Financial Behavior and its Effect on the Financial Decisions of University Students in Lebanon
1-Jean Elia
Modern University for Business and Science (MUBS), Lebanon
2-Elena Toros
Cyprus International University (CIU), Lebanon
3-Chadia Sawaya
Lebanese University (LU), Lebanon
4-Fadi Bou Reslan
Cyprus International University (CIU), Lebanon
5-Mohamed Balouza
Lebanese University (LU), Lebanon
6-Nada Jabbour AL Maalouf
Modern University for Business and Science (MUBS), Lebanon
Abstract
The term “financial literacy” describes a person’s knowledge of finance, attitudes about financial opportunities, and behavior with money. To make wise financial decisions, financial literacy is essential. Young adults, especially university students, must make difficult financial decisions that affect their financial behavior in today’s severe financial environment. This study aims to examine the association between financial behavior and financial decision-making among university students in Lebanon. The study’s importance thus stems from the severe concerns it raises about the longer-term impact of financial literacy on financial behavior and its influence on financial decision-making. To achieve its main objectives, the study used a quantitative approach. A questionnaire was distributed among students from a variety of Lebanese universities. A convenience sampling technique was used ending with a sample of 598 respondents. SPSS was used for data analysis and precisely Pearson correlation and regression analyses were employed. The findings of the study revealed the positive impact of financial literacy on financial behavior. Also, they showed the positive impact of financial behavior in turn on the financial decision-making of Lebanese university students. Based on these findings, it is highly recommended that university students educate themselves financially to make effective financial decisions.
Keywords: University students; financial decision making; financial literacy; financial behavior; Lebanon
