Financial literacy among young college students: Advancements and future directions 

1.1 Financial literacy

The definition of financial literacy is broad and is closely linked to financial education. Its importance has been emphasized for many years based on the need to obtain basic knowledge about the nature of money (Goyal K. & Satish K., 2021). Across time, the study of financial education and how people learn about relevant topics such as credit, circulation of money has been promoted (Garg N. & Shveta S., 2018). Financial literacy refers to the ability of people to make adequate decisions regarding their financial life based on judgements created from training in topics about the nature and circulation of money, credit, savings for education, retirement, accidents, pensions, among others (Taylor S. & Suzanne W., 2011).

According to Lusardi and Mitchell (2023) financial literacy means people’s knowledge of and ability to use fundamental financial concepts in their economic decision-making. Another definition explains financial literacy as “the ability to use knowledge and skills to manage financial resources effectively for a lifetime of financial well-being” (Knoll and Houts, 2012, p. 383). Under this approach, Blanco et al. (2024) highlight that the social determinants of financial knowledge, behavior, and well-being are also necessary to address racial/ethnic and gender disparities in finance.

Therefore, some authors highlight the transition from the term financial literacy to other more inclusive terms, such as financial capability (Xiao et al., 2022) or financial well-being, including skills to apply knowledge in everyday life (Bartholomae and Fox, 2021). Consistent with these definitions, this study analyzes financial literacy through the lens of financial knowledge, behavior, and attitudes, which are key components to understanding how college students manage their financial lives.

According to Oseifuah (2010), some key elements of financial education skills and knowledge are related to mathematical knowledge, the nature and forms of money, attitudes towards spending and saving, awareness of risks associated with financial products and the ability to make responsible and conscious decisions.

The importance of financial literacy lies in greater financial inclusion, improvements in the economy and the strengthening of the financial sector. People, for example, do not make adequate financial plans to cover their expenses, acquire financial products and services that fail to meet their actual needs, and even become victims of exploitative practices and scams (Aren S. & Sibel D., 2014). Financial literacy is a life skill, a requirement for citizenship and a critical intellectual competence that is essential for young people (such as university students) to acquire to perfect critical thinking, judgement, and other skills of a responsible citizen (Kezar & Hannah, 2010).

1.2 Financial literacy among college students

For several years, the need to include financial education has long been recognized as essential within college curricula. Before entering the labour market, students should master personal finance skills and have acquired training in responsible attitudes and sound financial behavior within their academic curriculum (Kezar & Hannah, 2010; Potrich et al., 2016). A greater inclusion of financial education in the academic programs of universities and higher education institutions would help students learn to properly manage their finances and improve their financial well-being, especially under the environmental and technological influences of the modern world (Ergün, 2018).

Some studies on this topic have focused on emerging economies. For example, Lantara I. Wayan N. & Ni K. R. K. (2015) investigates the level of financial education among undergraduate and graduate students in Indonesia. They found that male students, students with economics and business majors, and those with higher incomes and more work experience have higher rates of financial literacy. Other studies have examined students’ knowledge of savings and spending, banking, risks and insurance, investments, and general financial knowledge (Sarigül, 2014). Other studies have examined models that integrate the financial knowledge, behaviors, and attitudes of university students in Brazil, finding that financial knowledge and attitude have positive impacts on the financial behavior of students (Potrich et al., 2016). The level of financial education among university students in developed countries has also been addressed. Ergün (2018) found that male students, business students, and doctoral students who live in a rental house, students whose parents have a high level of income, students who receive advice on financial matters from their friends who have previously taken financial courses, and students who obtain financial information from college education have more knowledge about personal finances. Based on the above, this research aims to identify the most relevant issues related to financial literacy among young university students.

In addition, it is important to note that financial literacy among university students varies considerably by region and country. Access to financial education programs, the quality of the curriculum and institutional support differ by context. In some countries, formal financial education is integrated into university programs, while in others it is absent or minimal, so socioeconomic conditions, gender and cultural values also influence how financial knowledge is acquired and applied Ahmad N. L. et al. (2021). Thus, comparative and context-specific studies are essential to fully understand the financial literacy landscape of this population.

2.1 Search strategy

The search strategy is designed to take into account the nature of international databases, which require searches in English, as well as the previously detailed inclusion criteria. In this sense, the following specialized search strings are established:

2.2 Inclusion and exclusion criteria

As eligibility criteria, inclusion and exclusion criteria are established to select the most relevant documents according to the objective of the review. Three rounds of review were carried out by all the researchers: first, a review of the title, abstract, and keywords was conducted to exclude those records that were not in line with studies on financial literacy among university students. In a second review, those documents that did not include variables measuring financial literacy were excluded. Finally, the documents were scored from 1 to 3 based on their relevance to the research objective and the quality of their content (see Table 1). In this way, the relevance of the selected documents was assessed in alignment with the research objective.

As part of the exclusion criteria, it was decided not to include documents that focus on populations of primary or secondary school students. Instead, we chose to include those that specifically address financial literacy among higher education students. In addition, articles that lack variables or measures of financial literacy that are analyzed using statistical methods were excluded.

With this approach, a classification system was established that assigns a score of 1 to documents that cover financial literacy factors, even if their analysis is qualitative. The Documents that perform a quantitative descriptive analysis of the financial literacy variables receive a score of 2. Finally, the documents that conduct a correlational study of the variables related to financial literacy are given a score of 3. Therefore, only documents with a score of 3 were included, while those scoring 1 or 2 were considered not relevant.

2.3 Sources of information

Having established the previous considerations, the two main databases currently used to index quality scientific literature, such as Scopus and Web of Science, are defined as sources of scientific information (Caputo & Kargina, 2022). In order to carry out bibliometric analyses and literature reviews, researchers usually use these two databases, either individually or jointly, since they are the largest and have the greatest coverage of publications (Echchakoui, 2020).

2.4 Risk of bias assessment

The systematic review of the financial literacy literature requires a careful process of assessing the risk of bias of the selected studies. A detailed description of the methods and tools used is essential for this assessment. In the present review, the risk of bias was assessed using an automated tool developed in Microsoft Excel. This process was carried out jointly by all the authors, including data collection, thus ensuring consistency and uniformity in the procedure. This methodology guarantees the quality and integrity of the results, as it allows a standardized and collaborative assessment of the included studies.

2.5 Selection process

The implementation of the search strategy in the selected databases yielded a total of 350 records related to the topic of financial literacy among university students. Of these, 210 came from Scopus and 140 from Web of Science. After removing duplicate records, a total of 246 unique documents remained. Books, lecture notes, editorials, review articles, and documents in languages other than English or Spanish were excluded, along with those that were inaccessible. After applying the predefined inclusion and exclusion criteria, 46 documents were selected that aligned with the central theme and scope of this research. This process is illustrated in Figure 1.

Figure 1. PRISMA methodological summary.

Source: Own elaboration based on publications retrieved from Scopus and Web of Science.

3.1 Core financial knowledge

Most studies focus on students’ understanding of basic financial concepts (Beal & Delpachitra, 2003), such as interest rates, inflation, savings mechanisms, and credit (Tejada-Peña et al., 2023). However, deeper concepts such as compound interest, long-term investing, and retirement planning are addressed in fewer publications, despite their relevance to early financial habits.

Related studies have argued that most college students calculate compound interest and, consequently, tend to make mistakes when interpreting financial information associated with the concept of interest rates (Moreno-García, 2024; Moreno-García et al., 2017). In that sense, financial knowledge requires understanding the calculation of interest on loans (simple interest concept) and interest on deposits (compound interest concept), as well as awareness of investments (Channak et al., 2022). In that sense, intervention in curricula, textbooks, and courses in microeconomics and macroeconomics becomes necessary at both undergraduate and graduate levels to address these topics, as well as saving for retirement, budgeting, investing for the long term, and disposing of their assets in old age (Lusardi and Mitchell, 2023).

3.2 Budgeting and spending habits

A recurring theme in the literature is the ability of students to create and follow personal budgets. Budgeting is considered a method to improve effective money management; however, globally, students are the least interested in this process, which evidences the need to intervene in financial education within universities (Phung, 2023). Budgeting is discussed about income management, discretionary spending, and financial stress. Income generally comes from salaries, business, and investments, and in the case of some university students, from scholarships or family support, and the literature has shown that financial literacy and income have a positive and significant effect on personal financial management (Pamella, 2022). In turn, the increase in income associated with entering the full-time labor market requires increasing some money management behaviors, such as discretionary spending (Sinnewe and Nicholson, 2023).

For their part, Johan et al. (2021) have highlighted that, as college students begin living independently, they face new responsibilities for managing their finances, including budgeting, managing income and expenses, and paying bills. Another concern has to do with awareness of investment scams among college students. In the study by Mohd Padil et al. (2022) they found that having adequate budgeting skills can significantly improve awareness of investment scams among students. However, few studies address how students adapt their budgets to irregular income sources (e.g., part-time jobs or scholarships).

3.3 Credit and debt management

While several studies address the use of credit cards and student loans, many do not analyze their psychological and behavioral effects (Zachary Finney and Finney, 2018). Previous studies show that the relationship between financial literacy and risky credit behavior intensifies when college students’ financial stress levels are high (Liu and Zhang, 2021). Andrews (2021) mentions that the explosion of access to consumer credit from the 1980s through the 2000s, college students are using credit cards, often to cover shortfalls in their budgets while trying to pay for college.

The literature reveals that poor debt management is common, and few students understand credit limits, interest accrual, and repayment obligations (Chen et al., 2023). In that sense, an interest has arisen in recent years in the financial well-being line of research driven by the onset of the “student debt crisis” and how factors such as financial behaviors, individual and personal characteristics, family relationships, and formal socialization processes influence this phenomenon (Bartholomae and Fox, 2021).

3.4 Financial technology (FinTech) and digital tools

Recent research links financial literacy to digital platforms (Yin Yin et al., 2022), such as budgeting apps (Kamarudeen and Vijayalakshm, 2023), digital banking (Respati et al., 2023), and online financial education (Agasisti et al., 2023). Previous studies have explored how financial technology acts as an enabler of financial inclusion and financial literacy, which requires understanding how financial literacy drives behavior change, capacity building, and economic resilience (Croitoru et al., 2025). These technologies are especially relevant for digitally literate students, but the literature reveals a gap in assessing their actual effectiveness in improving literacy (Bermeo-Giraldo et al., 2023).

Previous studies have argued that while easily accessible fintech products are on the rise for consumers, a lack of basic financial literacy (FTL) may prevent them from taking full advantage of their benefits (Khan et al., 2023). Thus, as highlighted by AlSuwaidi and Mertzanis (2024) higher levels of financial literacy in a population could catalyze fintech market expansion. Thus, this is a potential research opportunity in the context of financial literacy among university students.

3.5 Financial attitudes and self-efficacy

Another important issue surrounding financial literacy has to do with financial self-efficacy, i.e., the college student’s confidence in his or her ability to acquire information to make effective financial decisions (Lone and Bhat, 2022). Another important factor is financial attitude, as previous studies such as Mustafa et al. (2023) showed that financial attitude and financial literacy significantly influence retirement planning, an essential factor in ensuring that individuals have enough money to live their desired lifestyle in retirement.

Studies explore students’ confidence in money management (Tejada-Peña et al., 2023), their financial goals (Lone and Bhat, 2022), and their emotional responses to financial decisions (Rosales-Pérez et al., 2021). Financial self-efficacy emerges as a moderating factor between knowledge and behavior (Amagir et al., 2022), although instruments to measure it vary considerably.

3.6 Socio-demographic and cultural variables

In recent years, numerous articles have evaluated sociodemographic and cultural factors such as the impact of gender, parental education, income, and field of study on financial literacy (Hanson, 2022; Sahabuddin and Hadianto, 2023). However, in the literature, cultural and class determinants, such as social norms around savings or perceptions of indebtedness, are often overlooked (Yanto et al., 2021). For as explained by Blanco et al. (2024) the financial information needs of women and racial/ethnic minorities can help reduce racial/ethnic and gender gaps in financial wellbeing. In addition, young people need to think about the actual or planned implementation of various retirement strategies, including private pension funds, asset investment, government subsidies, and family support (García Mata, 2021). This suggests the need for more context-specific research.

3.7 Research gaps

The systematic review of financial literacy led to the development of Table 3, which summarizes the main gaps identified in the existing literature. These gaps represent underexplored areas or issues that require further investigation and are crucial for guiding future lines of inquiry. The purpose of highlighting these gaps is to offer a framework that informs future studies and ensures that the most relevant and pressing issues are addressed, thereby enriching the academic understanding of financial literacy. Scholars working in this field are encouraged to review and consider these gaps when designing upcoming research projects.

4.1 Limitations

In terms of limitations, it is important to highlight that the search strategy limits the scope of the study. The time frame (2003-2023) covered two decades of research; thus, the scope of the search was limited to the terms Finance*, literacy, education, University student*, College student, and students. Therefore, it is possible that studies that addressed the topic but did not explicitly mention the search terms in their titles, may have been excluded. Thus, terms such as “university” and “College” were not included independently in the original search equation, nor was the abstract considered as a search field. In that sense, such a methodological decision may have limited the completeness of the results.

This bibliometric study, although comprehensive and based on the PRISMA-2020 methodology, has some limitations that must be recognized. First, the study is limited to the Scopus and Web of Science databases, excluding other relevant academic databases that may contain relevant research on financial literacy. This limitation could lead to a biased view of the field of study. In addition, the reliance on specific tools such as Microsoft Excel® (Excel, 2007) and VOSviewer® (Van Eck and Waltman, 2010) which constrain the bibliometric analysis to the functionalities offered by these platforms. While these tools are widely recognized for their effectiveness, other software or analytical techniques may offer complementary perspectives or alternative methods of interpretation. Finally, the study’s focus on bibliometric indicators related to quantity, quality, and structure—although relevant—may have overlooked other important metrics that could provide a more nuanced understanding of the evolution and trends within the financial literacy literature.

4.2 Practical implications

Regarding the practical implications, this systematic review complemented by a bibliometric analysis aimed to offer a more comprehensive view of the dynamics of the academic and scientific production related to financial education. Therefore, this research provides inputs for policymakers, regulators, and researchers to understand the characteristics of financial education and youth behavior and to identify research fields with potential. Likewise, the findings of this research contribute to consolidating the literature in the field of financial literacy and provide areas of interest for other authors and professionals to carry out future research activities.

The analysis of the literature on financial literacy revealed that quantitative methods predominate; therefore, more qualitative studies should be developed to provide a deep understanding of the behavior of individuals with regard to managing their finances in different contexts.

The findings indicate that future studies should focus on measuring financial illiteracy in various economic contexts because the results of the analysis suggest that financial illiteracy is a phenomenon not only in developing countries but also in advanced economies. Studies that measure the levels of financial education in different population generations, such as Millennials and Centennials, in which financial behavior and knowledge can be influenced by technology, should also be conducted.

Other future studies could analyze emerging economies, with longitudinal studies that allow comparisons of the evolution and new needs demanded by financial markets; the latter will determine the training content required in the financial field.

The systematic review of the literature on financial literacy, through an exhaustive synthesis and analysis of scientific works in the field, has profound practical implications in various sectors and dimensions. One of these is education. By identifying dominant trends and themes in the literature, education systems can adapt and update their curricula to incorporate modern concepts and pedagogical methods in the teaching of financial literacy. This is particularly relevant at the secondary and tertiary levels, where young people begin to have their first experiences with personal financial management.

From a public policy perspective, a robust systematic review of financial education can inform decisions about the design and implementation of national programs aimed at improving the financial health of the population. For example, by identifying geographic areas or demographic groups that are underrepresented in the literature, policymakers can target resources and efforts to these populations to ensure that they are not left behind in terms of financial skills and knowledge.

Another practical implication of this type of study is for the financial sector itself. Financial institutions such as banks, credit unions and others can benefit from a deeper understanding of trends and gaps in financial literacy. This understanding can help them to design products, services and marketing campaigns that are most appropriate and effective for their customer base. In addition, by identifying areas where financial literacy is low, institutions can develop education and training programs targeted at their customers.

Finally, in the area of technological innovation, understanding the literature on financial literacy through systematic reviews can guide the development of digital tools and platforms aimed at improving financial health. FinTechs and technology start-ups can identify opportunities to address unmet needs or develop solutions that are better adapted to emerging trends in financial behavior, particularly in the context of rapid digitization and technological change.

Ethics and consent statement

No ethical approval or consent was required.

Underlying data

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Extended data

Zenodo: Financial Literacy among Young College Students: Advancements and Future Directions, https://doi.org/10.5281/zenodo.14204753 (Rodriguez-Correa et al., 2023).

The project contains the following data:

The repository contains the data extracted from the databases for the bibliometric analysis. It also includes the PRISMA-recommended checklist for systematic literature reviews, along with the corresponding flow diagram.

The data availability statement for this study has been duly registered and archived in the Zenodo open data repository, which is recognized for its commitment to the accessibility and preservation of scientific data. The data and materials supported by this study are publicly available under a Creative Commons Attribution 4.0 International (CC BY 4.0) license and can be accessed at the following DOI link: https://doi.org/10.5281/zenodo.14204753 (Rodriguez-Correa et al., 2023).