Assessing the Effectiveness of Financial Literacy Programs for Business Student

Abstract

In recent years, researchers, practitioners, and policymakers have come to realize the significance of financial literacy. Owing to continuous transformations in the financial services sector, personal finance has grown increasingly complex, and the consequences of not obtaining sufficient financial education have escalated. The objective of this study was to evaluate the effectiveness of financial literacy programs aimed at university business students. Research question of the study were to what extent are business students financially literate? how effective are programs for financial literacy that are aimed at business students? and how can business students' financial literacy be improved? There was a quantitative analysis carried out. The study used a survey to collect data, and its design was descriptive in nature. A survey consisting of 20 questions related to various financial literacy was administered to a sample of 200 business students of Private universities in Islamabad Pakistan. Descriptive statistics for the overall financial literacy score and scores for three subtopics: Budgeting, Investment, and Risk Management. To evaluate the data, descriptive statistics are used, such as the mean, standard deviation, ANOVA and t-test. Results shows that with an average Overall Score of 62.0% from the pre-program assessment, business students demonstrated a moderate level of financial literacy. Moreover, Significant improvements were also seen in the risk management, investment, and budgeting scores. Study recommended that more individualized and effective learning experience requires adjusting financial literacy interventions to target particular deficiencies found in the pre-program assessment.