Financial literacy and behavioural biases among university students

Financial literacy and behavioural biases are crucial factors, which may affect individuals’ financial decisions and behaviour. University students who make financial decisions at this stage of their lives can feel impact of these decisions throughout their lives. Thus, university students’ financial wellbeing is shaped by these two factors. This paper investigates the relationship between financial literacy level and behavioural biases among university students. Target population was selected from University of West of England – Bristol (UWE). Data will be collected via survey method. Financial knowledge, financial attitude and financial behaviour are used in order to measure financial literacy level among university students. Financial literacy is used as dependent variable for the research. The level of behavioural biases will be used as independent variables based on a five-point Likert type scale. The relationship between financial literacy and behavioural biases will be analysed via regression analysis. The result of the research will show to what extent university students with the low level of financial literacy are exposed to behavioural biases, and which factors most affect financial literacy of university students. At the same time, it will also show how can university students prevent behavioural biases in order to avoid wrong financial decisions