Local Related Studies

Financial literacy of students are very vital in the survival of students as it connotes with

spending behavior of students. Study shows that financial literacy has a strong positive correlation

with their spending behaviors. This further implies that the higher their financial literacy and

knowledge the more that they can manage their financial obligation and they can allocate more. In

this regard, financial literacy has play a big role among students personal and financial

management skills, budgeting and allocating money properly and their challenges and strategies

when it comes finances. Prioritization is also one of its highlights.

Alvanita, Simeon and Charizer (2013) ascertain the relationship between the financial

literacy and budget practices of the students of International School of Asia and the Pacific (ISAP).

The study shows that the respondents has very good financial literacy and they have diverse budget

saving skills in the area of expenditures and budget saving. Further analysis shows that the

financial literacy of the respondents has a strong positive correlation and budget saving orifices of

the students. In addition, De Guzman (2011) shows also that students spending behaviors focused

on foods and school activities. Furthermore, same study also affirms that students are more likely

to spend their money on their daily expenditures.

On additional note, personal financial management challenges and strategies of students

with low income parents shows that they are more challenges to the following factors: money

saving, expenditure and investment. They have a varies strategies on augmenting their challenges

but on the long note, challenges and strategies are correlated with each other which then shows

that personal financial management is dependent to the what they perceived challenges and

strategies in managing finances ( Brangan, Cagaid & Ramirez, 2013).