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Attitudes, Knowledge and Behavior Levels of freshmen and seniors in Irish Universities
about Personal Finance
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Table of Contents

5. Introduction 3
6. Literature Review 5
6.1 Introduction 5
6.2 Theories, Variables and Area of Interest 5
6.21 Previous Studies to Encourage this Research 11
6.22 Addition to the Literature by this Study 14
6.23 Value Generated by this Research 15
6.24 Procedure to Add Value 15
6.3 Rationale for the Study 16
6.3.1 Connection Clarified with Literature 16
6.3.2 Presence of Sound Reasoning for Conducting Research 17
6.3.3 Indication by Literature on How to Conduct this research 17
6.4 Research Questions and Aims 18
6.41 Hypothesis 18
References 19
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5. Introduction
It has been righteously said that many people spend money that they have earned, to buy
things they do not want and impress people they do not like. The element of money is by far the
only proven need and want driving factor which helps in keeping the world in a proper operating
cycle. Thus, it cannot be stressed upon enough when it comes to knowing, managing and
organizing one’s earnings or personal finances. Personal finance in its simplest terms and as
categorized by numerous researchers can be described as the budgeting, expenditure, saving,
planning, setting goals and managing enough finance aside, as part of a contingency plan (Fei,
2017). The aspect of personal finance is not new to adults and now in the recent decades, young
adults have started to be meticulous about managing their finances. While it comes to managing
personal finances, a determined criteria has been set for the adults to follow which include
setting up a budget through which they can easily keep a track and oversee any expense. It has
been commonly observed that adults opt for savings account and make sure they keep aside
accessible finance for any unexpected times to come. This practice can be credited to the past
experiences and learnings whereas the young adults struggle in keeping their personal finances
afloat (Bharucha, 2018).

The recent trends have exhibited how around the world, every individual has been
suffering when it comes to managing or fulfilling their resources when it comes to saving or
managing their finances the right way. While the knowledge on how to manage and save up
one’s finances is a basic one, many studies have shown that individuals are not taught about it
and neither have they possessed any knowledge about being financial literate. Moreover, while it
is reasonable to expect from educational institutes on teaching their students on how to manage
their personal finances, there exists a very small percentage if educational institutes which come
forward in teaching their students on how to be financially literate (Bhushan & Medury, 2013).
Likewise, the research caters and addresses the scope of being financially educated and the
minimal resources that imply on teaching young adults to be financially literate for their own
good. It cannot be exaggerated enough when it comes to implying how important the aspect of
financial education is for the young adults as well as the adults. A research which catered to
reflect the importance of financial education, a total of 23% amongst a sample of 18 to 24 years
old young adults, only knew what being financially literate meant and could manage their
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finances. The bitter reality exhibits how student loans continue to climb above average while
young adults cannot go beyond making a simple financial transaction (Sinha, et al., 2018).

The relation between financial literate, financial wellness and financial concerns have
seemed alienated amongst younger generation. There exists patterns of the younger generation
struggling and being unaware of how they should plan and cater to future needs and
requirements. By this, a knowledge gap exists that puts the younger generation at a disadvantage
in concern to the being financially educated and therefore being able to manage their finances
(Taft, et al., 2013). The pattern of being financially disruptive in terms of late mortgage
payments, overdrawing checking accounts and having no contingency finance has been
commonly observed between the ranges of 18 to 30 year olds. True to some extent, it can
established that the millennials and generation X were found to be financially stable after the
baby boomers who have had been thoughtful when it comes to managing their finances. The
generation Z has however, struggled with student loans and potentially owe twice the debt then
what generation X catered to. Naturally, personal finances serve an imperative purpose when it
comes to managing and addressing their needs. Budgeting one’s personal finance in the most
effective and efficient way is a counter proportion to spending it recklessly and showing
impulsiveness by the young adults in spending it against the moderate needs (Mandell & Klein,
2009).

It is to be noted that when it comes to discussing personal finances, differences and

variations exist between genders and how they manage and address their personal finances. The
traditional approach suggests women as less responsible when it comes to managing their
personal finance and men are credited to being cautious and responsible for their personal
finances (Fisher, 2010). While there exists disparities when it comes to the nature, behavior and
social factors in between the two genders, variations also reflect in their financial behavior.
Women are thought to be less thoughtful as compared to men when it comes to managing their
personal finances and have different approach and understanding when it comes to investments
(Doda, 2014). Points of parity have been seen in men as they show more interest in managing
finances and are show potential interest in investing. While younger women who are potential
entrepreneurs or young adults who are working have been seen managing their own finances
keen and willingly. There is a general myth that men know more about finances and it had been
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true to an extent, however, in this day in age women are no longer left behind when it comes to
understanding or being financially literate. Recent researchers have found women to be 3.6 times
more efficient in paying back loans and mortgages as compared to men (Roszkowski & Grable,
2011).

As much importance is placed on managing one’s own personal finances or being

financially independent, mush thought and improvement has to be made to the system in
educating the younger generation of being financially literate at the very first. Like any other
education, the financial perspective is broad and knows no end (Lusardi, et al., 2010). It is
imperative for educational institutes and mediums to recognize the need of educating college
students and making them financially literate in order to help them organize and allocate
financial resources in accordance to their needs at all times to come.

6. Literature Review
6.1 Introduction
It has been considered imperative that for better management of personal finances and for
being able to sustain finance for the future, the element of financial literacy or being financially
educated is essential. In this research, we will find out how these variables impact senior students
and freshmen in Irish universities. Furthermore, after establishing this affect, the research will
also help us determine how the traditional literature has over turned through the passage of time.

6.2 Theories, Variables and Area of Interest

6.2.1 Perceived Importance of knowledge in Personal Finance

The concept and establishment of personal finance in literature has been well explained
and catered to in terms of understanding and its application in real life situations. However,
much to the dismay, the application of personal finance has been limited adults only and a little
or no knowledge regarding personal finance has been observed amongst the younger generation
or the young adults (Robb & Woodyard, 2011). Many studies and conclusions have strongly
concluded the minimal importance that has been placed on making the young adults being
financially learnt. Around the world, educational institutes, mainly colleges and universities have
not played a realistic part when it comes to giving education and knowledge on knowing,
managing and planning for personal finances. While noticeable is the fact that many young
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adults tend to dream of being financially independent and secure, there is not much resources and
instructions on how they can imply and manage their financial sources. Amidst all this, the
younger generation who are looking forward to their colleges and need sufficient financial
resources, suffer majorly and potentially end up with loans to pay for. This is where the concern
for implementing financial education arises and making it mandatory is important to students,
who then go on to become adults and contribute to the economy. Students have been widely seen
catering to credit card debts, student loans and struggle to keep their resources afloat and in hand
for the present needs as well as the future requirements (Norvilitis , et al., 2006).

The solution however, to cater to this ignorance and inconsideration is to educate about
the concept of personal finances and most importantly provide college students mandatory
education on being financial literate. The phenomenon of financial literacy has been an old one
and has passed on through generations, much to consider that its implication and impact has
declined by passage of years. The increasing trends of online retailing, preferring needs over
wants and addressing financial resources for education has been commonly observed in the
recent generations. Moreover, due to mismanagement of these very elements, every individual
has sunk into unimaginable depths of loans as compared to previous generations.
Mismanagement of personal finances is also a main resultant of not being knowledgeable enough
about one’s personal finances and the lack of understanding personal finances has been signaled
as a main contributing cause as to why students cannot save and invest money for profitable
outcomes (Bowen, 2002).

6.2.2 Perceived Attitude towards Personal Finance

The terminology of attitude refers to the self-expression or the frame of mind towards a
certain prospect. The concept of attitude towards personal finance deems to portray the potential,
responsibility and the ability of an individual towards their personal finances and financial
condition. While it has already been established that financial literacy has been at a potential
decline amongst the young adults and has been measured as a minor problem within adults, the
frame of mind potentially contributes to the body language and thoughtfulness to being educated
about personal finances (Hung, et al., 2009).
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As an initiation to the attitude towards personal finance, many studies have concluded
that the relation between the knowledge of finance and the attitude towards personal finance is
directly proportional to each other. Studies have shown that college students who possess little or
no knowledge about personal finances tend to pay no heed towards the accessibility of financing
through loans. While the only way to resolve this ignorance and attitude is by educating the
generation, a common conception lies as to why they would be required to be financially literate
when stepping out in the working class (Marsh, 2006)..

Another observation regarding the attitude of individuals or college students who have
taken loans or are in debt, has exhibited their proactive behavior of being positive towards the
concept of debts. As per many studies conducted, it can be concluded that students who have
been initially involved in taking loans in order to address their financial requirements tend to
portray positive viewpoints regarding loans and debts. When they are inquired about if they
would recommend it to any other individual or if they would opt for taking loans in the future,
the answer is usually affirmative (Akers, 2014). This thought process can be contributed to the
idea of how these individuals grow comfortable with the idea of taking in loans to satisfy needs
and requirements of the moment and are positive about its scheduled monthly payments. In
simpler terms, the individual grows comfortable with the idea of taking in loans when once
introduced or exposed to such as opportunity (Booji, et al., 2012).

6.2.3 Perceived Behavior about Personal Finance

A good personal finance behavior unlike its opposite nature is designated to be divided
into four different categories which are interdependent. The first criteria of a good personal
finance behavior is establishing measurable goals in terms of financial achievements and make
plans to attain them. Secondly, as suggested by many researchers, an individual who has good
financial behavior must build and ensure maintenance of one’s own contingency financial fund.
Moreover, the individual should abide by a proper budget which enlists spending and favorable
expenses. The last step caters to the applying and maintaining for an insurance policy ( Heinberg,
et al., 2010). The concept of behavior towards personal finance evaluates the efforts put in by an
individual in order to maintain his or her financial credibility and position for the present as well
as the future. As the need for a more responsible outlook towards being financially literate has
emerged through the very recent years, amongst college students and adults, their attitude is
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further driven by their behavior. As already established that majority of college going students
rely on student loans to facilitate their educational expenses, this leads to the individual paying
back consistently which causes a delay in achieving their future financial goals. A study
conducted in a college in Malaysia indicated that college students were covered with up to knee
length of financial debt and upon investigation, they recommended and suggested learning more
about financial management as part of learning and knowing about financial education in order
to help manage and execute their own finances properly (Jariah, et al., 2004).

As noticeable and thoughtful is the fact that financial illiteracy is ingrained in depth in
college students as well as adults, this has further resulted in mismanagement of financial goals
in the future. The recent researches on couple’s perception and behaviors on the stigma of
personal finance has brought about interesting yet reflect the major consequences of financial
illiteracy. A study carried out included 10 couples and is was narrated as per the results that
either one of the spouse thought that it was important to draw boundaries when it came to
arguments about personal finance and personal issues. Moreover, either one of the spouse also
confessed that their partner would spend too much money from their personal finance onto
meaningless items that were no good to both of them (Gibson Davis, 2009). In another research,
it was concluded that couples struggled in planning their finances for a longer term and rather
just settled with monthly financial plans. It is however, imperative to understand that while
finance is a long term permanent partner, a minimal of 20% couples were able to plan their
finances and expenditures on yearly basis and while the rest struggled with inconsistent financial
plans. Moreover, while many financial analysts suggest opting for insurance right after marriage
and is deemed as a primary determinant of financial status, couples still delay the idea of
insurance to up to and after 8 years of marriage. This has been credited to mismanagement and
ignorance of keeping one’s finances in check and not being able to comply within their financial
status (Fonseca, et al., 2012).

In the past and the present, while approaches and perceptions changed and evolved, one
element which remained consistent and common amongst adults and now in the younger
generation can be referred to as being materialistic. The term materialism signifies high
importance that is attached or linked to any worldly element and as observed, the spending tactic
have radiated a strong sense of materialistic or status oriented approach. This behavior widely
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reflects in both the genders despite the spending behaviors vary in both (Nye & Hillyard, 2013).
Individuals have been driven by manipulation of marketers on status and aesthetic oriented
approach when it comes to spending money and the perspective of functionality is long gone. It
has been found that while marketers tend to manipulate consumers into buying products that they
do not need and customers or individuals under the pressure to keep up with the society tend to
buy items on credit cards loans. The research further measured and concluded the estimated
count of credit card debt as per the American Consumer Credit Counselling to be $680 billion in
the revolving credit category and over $1.7 trillion of total debt. When broken down, it was
estimated that a household had $10,700 as an acquired debt and out of which only half of
individuals were able to pay monthly installments with consistency. It imperative to develop an
understanding about the rising interest rates and their adverse effect on personal finances which
are continuously declining resulting in huge amounts debts (Sher, 2011).

Attached to this very concept is the frequent yet unthoughtful usage of credit cards by the
younger generation or college students. While the ease and accessibility of credit cards cannot be
denied, likewise their frequent use turns to be potentially negative for the younger generation.
The holding of a credit card can also be classified as a status oriented approach, it also
emphasizes the credibility of its holder (Watson, 2003). As per many observations it was seen
that the young adults had sought to using credit cards in order to either to be recognized amongst
their social circle for being rich and more status oriented. On the other hand the second category
which tended to frequent opting of credit card finance were those who has limited or no cash in
hand and were ashamed or embarrassed to describe their financial situation in front of their
social circle or peers. It was also established and concluded that individuals who use credit cards
due to minimum availability of cash were also too embarrassed or hesitant to borrow or ask their
friend to loan a minimal amount. While this behavior towards frequent spending solely based on
loans have left every other individuals personal finance position in danger and thus promotes the
culture of acquiring loans and debts to meet the needs (Kidwell & Turrisi, 2000).

Suggestive tactics as to address the underlying problems regarding the behavior of

personal finance have been categorized by many renowned researchers. However, the basic tactic
is to promote the effectiveness of financial literacy among the youth and the adults. Furthermore,
they should be taught to assess and evaluate their personal financial position and should plan
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right from the beginning when it comes to managing finances and saving for the future. Colleges
and higher level education institutes should reinforce financial curriculums and enforce subjects
that can help bring in effective and practical usage amongst the students and help them manage
and evaluate their financial positions in order to ease the struggle in the future (McCormick,
2009).

6.2.4 Gender variations in Personal Finance

Gender has been stated as one of the most impactful and considerable variables when it
comes to measuring, discussing and evaluating personal finance or financial conditions overall.
While males and females differ in terms of nature, perspectives and approaches when it comes to
managing, utilizing and planning for personal finances. As gender differences influence both the
genders, the way males and females tend to learn and their interest also vary along the line.
When it comes to gender differences in terms personal finance or catering to financial situations
or planning at a whole level, researches done in Tennessee have exhibited and indicated how
male college students were more interested and inclined towards saving, managing and investing
money and were more involved in learning about financial management then female students.
The interests of female students were more inclined towards the money management and
planning rather than investing and evaluating financial position. An underlying basic rule that
contributes to the general idea of such a result is how from the very start boys are labelled as the
bread winners for the family and are kept involved in more rational and hypothetical work which
caters to their interests in numerical subjects. Moreover he societal perception has always catered
to stating that boys are more inclined towards jobs in fields of accounting, finance and
economics and thus are driven by this motivation ( Haiyang & Volpe, 2002). On the other hand
researches state that females are more inclined towards subjects which consist of in depth
thinking processes and largely opt for social sciences and humanity centered subjects instead of
courses which evolve on finance and numerical analogy (Agnew & Harrison, 2015).

Furthermore as discussed previously, the status and appearance oriented approach is

commonly found amongst both genders and observations have been made where the approaches
come into play. It has been observed that women tend to portray the status oriented approach in
terms of their financial interests more frequently amongst their social circles and friends in order
to remain important or to maintain their previously established image. Women tend to be more
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inclined towards the usage of ready cash available in order to show off their status or tend to
exploit the availability of credit cards to purchase a certain item or a service. It has been
observed that when the source of credit card is available at hand, women tend to make more
compulsive purchases which they do not need or require. On the other hand, it has been
observed that men will take into account the aesthetic oriented approach as they favor
functionality and looks above anything else. Men tend to utilize and gain favor from the cash on
hand and it signifies their value when in between friends or their social circle. They often make
purchases with cash to signify power, wealth and a dominating image over the rest as compared
to the women who tend to portray their wealthy image over a small scale (Yoon & Kim, 2016).

Amongst these differences lies another difference which revolves around the generic
nature of the two genders which also cause a noticeable variation when it comes to illustrating
potential efforts for managing personal finances. It has been often discussed and evaluated that
women tend to live longer than men, have a lower rate of retirement saving as compared to men
and tend to be paid less than what their male counterparts are earning. A study compared gender
differences amongst a sample of females a brokerage firm and it was concluded that the sample
had a lesser average of $6100 per annum as compared to the males working on the similar level
(Barber & Odean, 2001). Over the past few years, the issue of gender pay gap has come onto the
international forum and researchers have suggested a significant change in the traditional
approach of less wage for women to a more increase in salaries and acknowledgement for female
efforts. However, it is seen that self-efficacy level in a working women is three times higher than
that of her male counterpart when she has been given the right job and has motivation in terms of
acknowledgement, right pay and a work friendly environment. Women in the recent years and as
suggested by multiple researchers have been showing interests in managing personal finance and
budgeting frequently. While this was thought to be a man’s job, women have taken over
potential high level jobs in finance based firms (Hung , et al., 2012).

As the recent literature suggests, the availability of financial literature all around the
world caters to personal finance variations that exists among genders. Moreover the traditionally
stated gender roles no longer retain their position amongst an educated household and today
women are seen pursuing high education in every field which correlates to managing high profile
careers and tend to maintain a balance between the work life and personal finances. When it
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comes to addressing the male gender, there has been a consistency throughout their work life and
personal life which caters to their already established balance as seen when it comes to managing
and evaluating personal finances (Wilson & Altanlar, 2009).

6.21 Previous Studies to Encourage this Research

Many researchers have analyzed and evaluated the effectiveness of financial literacy or
being financially educated and being able to manage one’s own personal finances at the very
least. The simple existence of financial literacy is critical enough to exhibit its importance
amongst college students and adults regardless of their gender and income class. The financial
education has helped in effective management in individuals when it comes to managing, saving
and investing money for the future use. While studies have observed that low financial literacy
has left millennials or the earning workforce to be unprepared for any crisis or better yet their
retirement, 4 individuals out of 10 have been merely considered and evaluated to be on the right
track for saving and managing their finances in terms of sustainability (Lusardi & Mitchell,
2014).

While these unaddressed problems add up to a broader level, the bottom line of numerous
researches state the observable improvement that has been seen when a research sample has been
educated and taught about the importance of financial education. The conclusion that evolved
stated a profound impact on each individuals understanding of personal finance and moreover
sought out to an improved ability of being able to manage, source out and still save money. It has
also been established that being financial literate may seem tough but once an individual has
mastered the technique, they can ease up their burdens tremendously (Martin, 2007).

An interesting linkage has been observed between a college student’s dependency or

independency on his financial status and the feeling of being self-sufficient or self-efficacy.
Considerably in the recent years, college students have nonetheless been working hard and
effectively to become independent when it comes to earning, managing and spending financial
resources. The idea of working for a better living and education has given birth to the undeniable
feeling of self-efficacy which constitutes to exerting or executing potential capability to attain a
specific performance outcome and achieve a potential milestone or goal solely on the basis of
one’s hard work (Qamar, et al., 2016).
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As noticeable and thoughtful is the fact that financial illiteracy is ingrained in depth in
college students as well as adults, this has further resulted in mismanagement of financial goals
in the future. The recent researches on couple’s perception and behaviors on the stigma of
personal finance has brought about interesting yet reflect the major consequences of financial
illiteracy. A study carried out included 10 couples and is was narrated as per the results that
either one of the spouse thought that it was important to draw boundaries when it came to
arguments about personal finance and personal issues. Moreover, either one of the spouse also
confessed that their partner would spend too much money from their personal finance onto
meaningless items that were no good to both of them (Gibson Davis, 2009).

In another research, it was concluded that couples struggled in planning their finances for
a longer term and rather just settled with monthly financial plans. It is however, imperative to
understand that while finance is a long term permanent partner, a minimal of 20% couples were
able to plan their finances and expenditures on yearly basis and while the rest struggled with
inconsistent financial plans. Moreover, while many financial analysts suggest opting for
insurance right after marriage and is deemed as a primary determinant of financial status, couples
still delay the idea of insurance to up to and after 8 years of marriage. This has been credited to
mismanagement and ignorance of keeping one’s finances in check and not being able to comply
within their financial status (Fonseca, et al., 2012)

Considerably many researches have implied variations that seemingly exist among
females and males and tend to be an involved variable in differentiating both genders behaviors
towards personal finance. A study seemingly suggests how men are more risk takers and tend to
portray an optimistic perspective of the risk. Males tend to invest and evaluate risks on the basis
of getting larger returns on their investments and this is a main cause of inclined favoritism
towards finance. On the other hand, women are described as more risk averse and are thought to
not welcome or adapt to risky situations and rather are opt for comfortable conventional
practices. A study carried out by an online finance research forum suggested that in terms of
investing males are overconfident about their knowledge and females tend to be under confident
about their potential, and conclusively both these factors can undercut the chances of higher
returns (Graham, et al., 2002).
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In terms of mortgage loans, it was found out that males had a larger proportion of debt
and had the tendency of being late when it came to paying back installments for mortgage loans
and this stirred up the need for using the option of available credit. However, when the same
situation was analyzed for females, it was found out that women had a consistent tendency to pay
back loan payments on time and if not, the also tended to pay back a late fee. In terms of
available credit usage, it was found that women carried a balance when it came to making their
due payments. Simultaneously, it was found that both the genders who had high financial literacy
rate, exhibited less instances where they would opt for expensive credit card assistance (Houston,
2012).

6.22 Addition to the Literature by this Study

In a study the concept of financial education as important to cater to the resolving and
benefitting of the individuals but also helps in carving future ways in ease and accessibility for
them. The financial world today is as complex as it was in the past years, however, as predicted
the negligence on managing finances has caused huge loans onto a single individual and has
indefinitely impacted the economy (Greenspan, 2005). It can be easily said that while a problem
arises, it develops gradually from the micro level, then contributing to the macro or the larger
level.

Well known researches have established the imperative concept of distinguishing

amongst a wide range of needs, wants and preferences in order to manage one’s personal
finances successfully. In the recent decades, it is certain that while young adults have easy access
to financial facilities and credit card availability, at a much younger age as compared to the
previous generation statistics. However in many cases where ignorance is not bliss, there is need
for a much broader and comprehensive understanding of finances to be able to differentiate
between what is a need and what is exhibited to be a luxury (Clark, 2003). In an extensive
research conducted in US on college students, a positive indication onto recommendations such
as introducing basic knowledge for courses on finance and micro level economics was deemed to
be considered important for college and high school students. Moreover, the importance and
implication of financial education was also held as a priority and was recommended to be made
compulsory for high school students (Mimura, et al., 2015),
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While college students tend to incline towards the option of either opting for student
loans or have sufficient funds available from their parents, to source college education. There has
been observation in the increased trend of the usage of credit cards at hand. The availability and
importance of a credit card is inspired by cash readily available at hand and subjects to
accessibility at all times of needs. While there was a significant decline in opting for credit card
debts amongst the generation x, an increase has however been seen in the usage and availing of
credit card loans by the millennials. Suggestive cause’s state that the young adults tend to be of
age and come into terms with distinctive challenges and in terms with their financial positions
which need to be addressed by taking in loans if adequate personal finance is not available. Over
the years an addition to the causation has been made and is identified as the literacy of personal
finance and moreover, and individual’s attitude towards their financial position (Autio, et al.,
2009).

6.23 Value Generated by this Research

This research would help in generating the underlying relation and impact of financial
knowledge onto managing personal finances. The research will also help in identifying potential
impacts of behavior, gender and attitude that have proven to have a significant impact on
managing and saving when it comes to personal finance.

The research will cater to empirical data which will be act as evidence to the established
hypothesis and will confirm the nature and impact of these dependent or mediating variables
onto the independent variable.

6.24 Procedure to Add Value

Since the research potentially distinguishes relationships between the three dependent
variables and an independent variable and their potential impacts on personal finance thus
various works come into the perspective. In addition to this, researches have observed and
concluded that young adults or college students who tend to be more responsible and exhibit
serious behavioral efforts to managing their finances just from the very start, tend to have their
finances sorted out. Moreover, they tend to do well in their professional and personal finances in
the future as they know that financial security and financial achievement are linked to good
financial behavior (Scheresberg, 2013).
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Moreover, it was observed that students who had understanding and good grasp of
financial subjects such as financial management, taxes and auditing were found to be frequent in
managing and understanding their finances. When out of a sample, an estimated 56%
participants both male and female concluded that they understood finance based subjects better
and thus were also able to manage their finances accordingly to their needs and wants (Baker &
Nofsinger, 2010).

6.3 Rationale for the Study

It is imperative to understand the aim behind this research is to establish the perceived
impacting variables and thus their importance that should be communicated to the universities
and colleges. With the ongoing economic situation all across the globe, individuals all around the
world have feel prey to the worsening conditions of the economy. In the past years, as per many
researches, where the earning and working class had immense buying and spending power, in the
recent years this has seemingly declined. Where the traditional advice in terms of personal
finance is tossed around in unthoughtful statements, the actual way of dealing with personal
finances is more complicated. The changing economic conditions have brought about an increase
in spending and the earnings are fairly low. This has thoroughly impacted a record high of 50%
of the adults and young adults who have come to believing that their financial situation is getting
worse as days pass by. However, as this economic downturn negatively affects the generation, an
established need by multiple studies suggest how adults and young adults should be taught to
differentiate between a need and a want. Furthermore, young adults should be taught to establish
an understanding of looking out and adjusting to the functionality of a product rather to its status
or appearance oriented image or appeal (Wiedmann, et al., 2004).

While this research reaffirms the effects of knowledge, behavior, attitude and gender onto
personal finance, specifically in the Irish communities and amongst college and university
students. It will also help establish the authenticity of the literature regarding these researches
and if they are applicable in the ever-changing societies till date.

6.3.1 Connection Clarified with Literature

A research that was carried out on a sample of 80 college students at a Midwestern US

university, found out a positive correlation between the level of income and the knowledge of
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personal finance. Moreover, the students exhibited a high proportion of positive relation
associated between the knowledge of personal finance and the levels of self-efficacy. Students
who worked and supported themselves in terms of educational expenses were driven by
motivation and the need to achieve goals for a secure financial position in the future (Heckman
& Grable , 2011).

Furthermore, while other variables remain constant, a relationship between observed

between family backgrounds and attitude towards personal finance. Noticeable is the fact that
were young adults, from the very beginning have been inclined and given the ease of finance
resources readily available, these individuals tend to portray little or no independency until they
are adults and have some experience in the working sector and have a background of earning
their own incomes. Individuals who have been observant to their financial status and know their
limitations, tend to display efforts to either ease the financial burdens or to become financially
independent in order to support their fore coming expenses (Chinen & Endo, 2012).

6.3.2 Presence of Sound Reasoning for Conducting Research

Numerous trends and evaluations that were carried out amongst college students in the
US have shown that out of a total percentage, only 27% college students were able to describe
and discuss financial literacy as per evaluated on their age and need levels. Furthermore, while
financial illiteracy is a consistent practice seen among college students, the working class
exhibits some parity points so to just distinguish them from the college students. At many
instances it has been recorded that despite the level of financial literacy varies in accordance to
education and income levels, the highly educated working individuals with high incomes tend to
be just as ignorant about their financial issues as the less educated, low earning class or the
college students (Perry & Morris, 2005).

This raises the question, as to why does this ignorance continue to spread and much is not
done about it. Amongst individuals, the element of hesitancy or embarrassment has been seen
when it comes to asking about personal finances and addressing them. Many researchers suggest
that to address this widespread issue, the need is to normalize the term of personal finances so
that individuals who are either college students or are a part of the workforce can acquire basic
 18

knowledge about personal finances and ways of how one can benefit from them (Angelica, et al.,
2019).

6.3.3 Indication by Literature on How to Conduct this research

A noticeable majority of the researches and literature mentioned in the context have
indicated using questionnaires as part their researches including (Akers, 2014), (Barber &
Odean, 2001) and (Fisher, 2010) conducted their researches on different ground variables and
amongst the specific age range that includes young adults and adults. The questions were asked
though a questionnaire and included close ended questions for the participants to answer.

6.4 Research Questions and Aims

The research aims to test the potential relationship between knowledge about personal
finance, attitude and personal finance, behavior and personal finance and lastly how gender and
personal finance are correlated. What is important to note is how the study would promote to the
importance of knowledge towards personal finance.

1. Do universities help students learn the importance of personal finance?

2. What are the possible perceived attitudes towards personal finance?
3. What are the different perceived behaviors towards personal finance?
4. Are men more likely to be concerned about personal finance topics as compared
to women?

6.41 Hypothesis
H1a: There is a significant positive relation between knowledge about personal finance
and perceived attitude towards personal finance.

H1b: There is no significant relation between knowledge about personal finance and
perceived attitude towards personal finance.

H2a: There is a significant positive relation between knowledge about personal finance
and behavior towards personal finance.

H2b: There is no significant relation between knowledge about personal finance and
behavior towards personal finance.
 19

H3a: Men are more likely to be concerned about knowledge of personal finance as
compared to women.

H3b: Men are not likely to be concerned about knowledge about personal finance as
compared to women.

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