From Savings to Consumption: How Financial Literacy Influences College Students' Use of Electronic Wallets and Budgeting Behaviors

Kok Ban Teoh; Boon Keong Teow; Dwi Nita Aryani; Zhihan Liu; Yushuo Liu; Yifei Long; Jiahui Long; Rizkyvania Betarishanti Budiani; Daisy Mui Hung Kee

doi:10.32535/ijafap.v9i1.4389

From Savings to Consumption: How Financial Literacy Influences College Students' Use of Electronic Wallets and Budgeting Behaviors

Kok Ban Teoh, Boon Keong Teow, Dwi Nita Aryani, Zhihan Liu, Yushuo Liu, Yifei Long, Jiahui Long, Rizkyvania Betarishanti Budiani, Daisy Mui Hung Kee

Abstract

As mobile payments become increasingly prevalent in Asia, university students widely use electronic wallets for daily transactions, raising concerns about their financial management behavior. This study examines the effect of financial literacy on spending behavior, saving habits, and budgeting and e-wallet usage among university students. Data were collected from 150 respondents through an online survey. The findings indicate that financial literacy is negatively and significantly associated with spending behavior (r = –0.170, p < 0.05) and positively associated with saving habits (r = 0.192, p < 0.05). However, the relationship between financial literacy and budgeting and e-wallet usage is positive but not statistically significant (r = 0.116, p > 0.05). Regression results show that financial literacy significantly reduces spending behavior (? = –0.159, p = 0.050), while its influence on budgeting behavior and e-wallet feature utilization is not significant. The model explains 6.7 percent of the variance (R² = 0.067). These findings suggest that financial literacy plays a protective role in controlling spending, but additional factors influence digital financial behavior.

Keywords

Asia; Budgeting Behavior; E-Wallet Usage; Financial Literacy; Mobile Payments; Spending Habits; University Students

Full Text:

PDF

References

Amagir, A., Groot, W., Maassen van den Brink, H., & Wilschut, A. (2018). A review of financial literacy education programs for children and adolescents. Citizenship, Social and Economics Education, 17(1), 56–80. https://doi.org/10.1177/2047173417719555

Bhuiyan, M. R. I., Akter, M. S., & Islam, S. (2025). How does digital payment transform society as a cashless society? An empirical study in the developing economy. Journal of Science and Technology Policy Management, 16(4), 756-774. https://doi.org/10.1108/JSTPM-10-2023-0170

Davis, J. M. (2015). Sampling and what it means. The Cambridge guide to research in language teaching and learning, 198-205.

Etikan, I., Musa, S. A., & Alkassim, R. S. (2016). Comparison of convenience sampling and purposive sampling. American Journal of Theoretical and Applied Statistics, 5(1), 1–4. https://doi.org/10.11648/j.ajtas.20160501.11

Gunawan, A., Sadri, M., Pulungan, D. R., & Koto, M. (2022). Study of phenomenon on consumption behavior of Medan city students During pandemic: Financial literacy on e-commerce. Webology, 19(1), 2853-2872. https://doi.org/10.14704/WEB/V19I1/WEB19190

Hassan, M. A., Shukur, Z., & Hasan, M. K. (2021). Electronic wallet payment system in Malaysia. In Data Analytics and Management: Proceedings of ICDAM (pp. 711-736). Singapore: Springer Singapore. https://doi.org/10.1007/978-981-15-8335-3_55

Ingale, K. K., & Paluri, R. A. (2022). Financial literacy and financial behaviour: A bibliometric analysis. Review of Behavioral Finance, 14(1), 130-154. https://doi.org/10.1108/RBF-06-2020-0141

Korella, J. L., & Li, W. (2018). Retail payment behaviour and the adoption of innovative payments: A comparative study in China and Germany. Journal of Payments Strategy & Systems, 12(3), 245-265. https://doi.org/10.69554/YZWE7925

Koskelainen, T., Kalmi, P., Scornavacca, E., & Vartiainen, T. (2023). Financial literacy in the digital age—A research agenda. Journal of Consumer Affairs, 57(1), 507-528. https://doi.org/10.1111/joca.12510

Kumar, A. (2024, April 27). Knowledge transfer in the digital age: Investigating the mechanisms and challenges. SSRN. https://doi.org/10.2139/ssrn.4809874

Kurowski, ?. (2021). Household’s overindebtedness during the COVID-19 crisis: The role of debt and financial literacy. Risks, 9(4), 62. https://doi.org/10.3390/risks9040062

Likert, R. (1932). A technique for the measurement of attitudes. Archives of Psychology, 140, 1–55.

Lusardi, A., & Mitchell, O. S. (2014). The economic importance of financial literacy: Theory and evidence. Journal of Economic Literature, 52(1), 5–44. https://doi.org/10.1257/jel.52.1.5

Ogedengbe, A. O., Jejeniwa, T. O., Friday, S. C., & Olatunji, H. (2024). Framework for digitally transforming financial management systems in SME and public sector organizations. International Journal of Multidisciplinary Research and Growth Evaluation, 5(5), 1122-1142. https://doi.org/10.54660/.IJMRGE.2024.5.5.1122-1142

Organisation for Economic Co-operation and Development. (2024). OECD/INFE survey instrument to measure digital financial literacy (OECD Working Papers on Finance, Insurance and Private Pensions, No. 57). OECD Publishing. https://www.oecd.org/en/publications/oecd-infe-survey-instrument-to-measure-digital-financial-literacy_548de821-en.html

Putrevu, J., & Mertzanis, C. (2024). The adoption of digital payments in emerging economies: challenges and policy responses. Digital Policy, Regulation and Governance, 26(5), 476-500. https://doi.org/10.1108/DPRG-06-2023-0077

Raghubir, P., & Srivastava, J. (2008). Monopoly money: The effect of payment coupling and form on spending behavior. Journal of Experimental Psychology: Applied, 14(3), 213–225. https://doi.org/10.1037/1076-898X.14.3.213

Sabri, M. F., Anthony, M., Law, S. H., Rahim, H. A., Burhan, N. A. S., & Ithnin, M. (2023). Impact of financial behaviour on financial well-being: evidence among young adults in Malaysia. Journal of Financial Services Marketing, 1. https://doi.org/10.1057/s41264-023-00234-8

Seldal, M. N., & Nyhus, E. K. (2022). Financial vulnerability, financial literacy, and the use of digital payment technologies. Journal of Consumer Policy, 45(2), 281-306. https://doi.org/10.1007/s10603-022-09512-9

Taylor, J. (2024). Basics of statistical research for business decisions. Global Academic Press.

Torre, J. M. Y. D., Jangao, J. P. P., Maghilum, J. T., Man-onan, R. J. H., Pepito, S. G., Jr., Rapirap, G. P., Jr., & Cervantes, J. Z. (2025). The impact of personal budgeting skills on college students’ financial stability. Research Journal in Business and Economics, 3(3), 199–205. https://doi.org/10.61424/rjbe.v3i3.574

Xiao, J. J., & O’Neill, B. (2016). Consumer financial education and financial capability. International Journal of Consumer Studies, 40(6), 712–721. https://doi.org/10.1111/ijcs.12285

Xiao, J. J., & Porto, N. (2017). Financial education and financial satisfaction: Financial literacy, behavior, and capability as mediators. International Journal of Bank Marketing, 35(5), 805–817. https://doi.org/10.1108/IJBM-01-2016-0009

Xiao, J. J., Tang, C., & Shim, S. (2009). Acting for happiness: Financial behavior and life satisfaction of college students. Social Indicators Research, 92(1), 53–68. https://doi.org/10.1007/s11205-008-9288-6

Yuttama, F. R. (2025). Behavioral shifts in digital finance: How e-payment influences consumer spending and financial literacy. Journal of Management and Entrepreneurship Research, 6(4), 358-371. https://doi.org/10.34001/jmer.2025.12.06.4-80

DOI: https://doi.org/10.32535/ijafap.v9i1.4389