The Role of Financial Literacy in Reducing Financial Stress among College Students: A Survey-Based Study

Abstract

This study examines the relationship between financial stress and various financial factors, such as financial knowledge, attitude, behavior, money management literacy, and savings propensity. Using a sample of 197 respondents from Mumbai, data was collected through a structured questionnaire employing a 5-point Likert scale. The analysis was conducted using regression modeling in R Studio to explore the influence of these variables on financial stress. The results indicate that financial knowledge (FK) and savings propensity (SP) have a significant positive impact on financial stress, while financial attitude (FA), financial behavior (FB), and money management literacy (MIL) showed no significant effect. This research contributes to the understanding of how financial well-being factors relate to stress levels, offering valuable insights for policymakers and financial educators. Future research could expand the scope by including other socio-economic variables and examining broader geographic regions.