DefinePK

Abstract

Financial literacy, a critical life skill, is essential for personal financial security and broader economic stability, yet many students struggle with financial management, leading to challenges such as excessive debt and poor savings habits. This study conducted to compare the financial literacy between business and non-business college students in Khyber-Pakhtunkhwa, Pakistan. Using a stratified random sampling method, 300 self-administered questionnaires were distributed equally among business and non-business students in Peshawar. Reliability analysis confirmed the internal consistency of the constructs, with Cronbach’s Alpha values ranging from 0.707 to 0.812, all exceeding the 0.7 threshold. The findings reveal significant disparities in financial literacy between the two groups. Business students outperformed non-business students in Financial Knowledge (mean difference = 14.872, p = 0.000), Financial Skills (mean difference = 3.626, p = 0.002), Financial Attitude (mean difference = 5.697, p = 0.004), and Financial Behavior (mean difference = 1.311, p = 0.001). However, no significant difference was observed in Financial Planning (p = 0.121), indicating a shared gap in long-term financial strategies. These results highlight the role of academic specialization in shaping financial competencies and underscore the need for integrating financial education into non-business curricula to address disparities. The study's implications call for targeted interventions to enhance financial literacy among all students, equipping them for informed decision-making and improved financial well-being.