MANAGING STUDENT FINANCIAL WELL-BEING IN HIGHER EDUCATION: THE ROLE OF FINANCIAL BEHAVIOUR AND INSTITUTIONAL SUPPORT

Abstract

This study investigates the extent to which financial behaviour serves as a mediating mechanism linking parental financial socialisation to subjective financial well-being among Malaysian community college students. Drawing on Family Financial Socialisation Theory and an ecological framework of well-being, the research utilised a cross-sectional survey where 432 community college students in Johor, the majority of whom were from lower-income households, were involved in data collection. Data was analysed through Partial Least Squares Structural Equation Modelling (PLS-SEM) to test direct and indirect relationships. Results show parental financial socialisation significantly predicts both students’ financial behaviour and subjective financial well-being. However, financial behaviour does not significantly predict subjective financial well-being, and no mediating effect is observed. Model explanatory power is modest, suggesting that while parental influences remain salient, behavioural execution alone is insufficient to account for students’ well-being evaluations in financially constrained contexts. The findings challenge assumptions of financial well-being studies that place primary importance on behavioural aspects and recognise the importance of relational and contextual aspects that transcend behavioural aspects of the financial practices of individuals. The significance of this study is that it establishes that subjective perceptions of financial well-being of vulnerable students are more influenced by socialisation and perceptions of financial security than by behavioural aspects. In addition, this study extends beyond individual financial behaviour by examining how institutional support mechanisms and educational management practices condition the relationship between students’ financial behaviour and their financial well-being