The Relationships Between Financial Literacy, Anxiety, and Happiness in College Students

Due to the overwhelming nature of mounting college tuition and rising daily expenses, it is feasible to predict that college students may not feel as happy as their graduated counterparts. This study will investigate the correlation between one’s financial literacy and their emotional well-being (ie. anxiety and happiness). Previous studies have found that financial topics can affect general emotional well being in individuals. Notably, it was found that having financial knowledge was correlated with feelings of anxiousness and worry. Few studies have explored the impact of financial literacy on the specific population of college students. The objective of this study is to explore the connections between being financially literate and well versed in financial hygiene and their correlation with general happiness levels. The methods utilized in this study will consist of presenting the subjects with 3 surveys that are composed of 10 questions each. Participants will be asked a series of questions pertaining to general financial knowledge, financial anxiety, and their overall subjective happiness. The questions will be in the form of questionnaires and Likert scales. We expect to find a positive correlation between financial literacy and subjective happiness, but a negative correlation between financial anxiety and subjective happiness. We will also explore the relationship between financial literacy and financial anxiety. It may be that those high in both may experience decrements in happiness Specifically, we expect to find that those who have been exposed to financial topics will rate themselves as an overall happier individual