Abstract:
Sri Lanka, like many other countries, is currently facing a shortage of young adults
with sufficient financial literacy and sound financial behaviour, particularly among
accounting or finance graduates. Financial literacy, encompassing awareness,
knowledge, skills, attitudes, and usage, is essential for making informed financial
decisions. In the evolving financial landscape, graduates often face challenges in
managing complex financial products, rising living costs, and debt. This study
investigates the impact of financial literacy on saving, investing, budgeting, and
borrowing behaviours, ultimately contributing to graduates' long-term financial
stability, wealth accumulation, and overall financial well-being. A quantitative
approach is employed. Structured questionnaire used to collect data from 357
graduates across seven (07) state universities in Sri Lanka. Correlation and regression
analysis were applied to test the hypothesis of the study. The questionnaire was based
on Likert scale to assess participants' perceptions, behaviours, and attitudes toward
financial literacy and financial behaviour. This method is chosen for its effectiveness
in reaching a large sample and ensuring data accuracy. Results of the study provide
valuable insights into the level of financial literacy and its direct correlation with the
financial behaviour of graduates. Additionally, the findings are expected to highlight
areas where financial literacy education can be improved and identify the specific
challenges graduates face in managing their personal finances. Further, study
recommends enhancing financial education programmes, particularly within
university curricula, to better equip students for real-world financial decision-making.
The study's outcomes will contribute to a broader understanding of how financial
literacy affects the financial behaviour of young adults in Sri Lanka, particularly those
in the fields of accountancy and finance.
