The Impact of Personal Budgeting Skills on College Students’ Financial Stability

Abstract

Handling money wisely is essential for college students who face daily expenses and prepare for future financial responsibilities. This study examined how students’ budgeting skills influence their financial stability, aiming to show that effective budgeting can lead to better saving habits, reduced financial stress, and improved decision-making. Using a descriptive-correlational research design, wherein 213 respondents were chosen at random from a total population of 457 students enrolled, the study explored the relationship between personal budgeting skills and financial stability among college students. A structured questionnaire was utilized to gather data on three aspects of budgeting: budget planning, financial goal setting, and expense tracking. Demographic information such as age, sex, year & program, and average monthly allowance was also collected. The data were analyzed using descriptive statistics and correlation analysis to determine the strength and significance of the relationship between budgeting and financial stability. Findings revealed that most students demonstrate good budgeting practices and recognize the importance of planning and setting goals. However, some still struggle to adhere to their budgets or consistently monitor expenses using digital tools. The correlation coefficient of 0.7247 with a significance level of p < 0.01 indicated a strong positive relationship between budgeting skills and financial stability. Students who exhibit better budgeting habits tend to save more, feel more financially secure, and experience less stress. In conclusion, the study confirms that developing personal budgeting skills significantly enhances students’ financial stability. Thus, schools and communities are encouraged to implement programs and workshops that promote financial literacy and responsible money management.