Determinants of money management skills: The mediating role of financial literacy

This study examined the mediating role of financial literacy in the relationship between economic, social, and psychological determinants and the money management skills of college students in Calapan City. Utilizing a quantitative research design, data were gathered from 688 respondents at public higher education institutions in Calapan City through a structured, self-administered questionnaire. Random sampling was employed to ensure representative results, while data analysis was conducted using descriptive statistics, Pearson correlation, and reliability testing via Cronbach’s alpha. Findings reveal that economic, social, and psychological factors significantly influence students’ money management skills in saving, budgeting, and investing. Specifically, psychological factors emerged as the most potent determinant of financial behavior. Furthermore, financial literacy demonstrated a significant mediating effect, serving as the critical mechanism that translates external and internal influences into practical money management skills. The results emphasize the necessity of institutionalizing financial literacy initiatives to bridge the theory-practice gap and foster responsible financial decision-making among students as they transition into the professional workforce.