The applicability of universal financial literacy amongst first-year Bachelor of Commerce students at the University of Malta

Abstract

Purpose: The principal objective of this study is to evaluate the level of financial literacy among first year Bachelor of Commerce Students at the University of Malta. The study aims to shed a light on the students’ financial knowledge, attitudes, and behaviour. This evaluation is essential as financial decisions have a substantial impact on one’s present and future financial situation, the economy and personal growth. Moreover, financial literacy enables students to successfully handle their future personal and professional financial obligations as they enter into the business industries. Design: A quantitative study was utilised as questionnaires were distributed to the first year Bachelor of Commerce Students, to become familiar with their level of financial literacy. The study sought to collect data from a significant portion of the targeted population, given the course’s sheer amount of enrolled students. Findings: The study’s findings demonstrated a moderate level of financial literacy, defined by moderate financial knowledge, risk aversion and proactive money management like preserving a budget. Nonetheless, they exhibited a reluctance to prepare for retirement and seek professional guidance, which is consistent with larger Maltese population trends. The results of the study led to the formulation of suggestions aimed to improve the students’ financial management abilities and deficiencies observed in financial knowledge like risk diversification. Conclusion: Even though the students have respectable levels of financial literacy, there is still room for improvement. Suggestions were made to help their financial literacy grow further preparing them for any obstacles they might face in the future. Implications: Some important implications which can emerge from this study are, the alteration of education practices like incorporating practical financial education into the curriculum and encouraging community-based financial education. These may improve financial literacy more broadly, which might have wider societal effects like better money management and more stable economies.