Factors Influencing Money Management During the Crisis Period among Undergraduates in Sri Lanka

Abstract

This study investigates the factors influencing money management behavior among undergraduate students in Sri Lanka during times of economic crisis. Recognizing that financial decision-making is multifaceted, the research explores how economic, psychological, and social factors contribute to students' ability to manage their finances. Data were collected through a structured online questionnaire distributed via snowball sampling to a total of 371 undergraduates across both government and private universities. The study adopted quantitative research design and utilized statistical tools such as descriptive statistics, correlation analysis, multiple regression, and independent samples t-tests. The findings revealed that economic and psychological factors significantly and positively influence money management behavior, while social factors had a weaker and statistically insignificant effect. Government and private university students also exhibited notable differences in money management practices, with private university students generally demonstrating stronger financial behavior, possibly due to higher financial support. The study confirms that psychological traits such as confidence, self-control, and perceived financial stability play a crucial role in promoting responsible financial practices among undergraduates. This research makes a significant contribution to the limited body of literature on student financial behavior in Sri Lanka by incorporating comparative analysis and a behavioral lens during a crisis period. The results have practical implications for educational institutions, policymakers, and financial educators in designing targeted financial literacy programs and support systems. The study recommends further exploration using longitudinal and qualitative methods to deepen the understanding of how students' financial behaviors evolve over time.