Home⇛Psychology and Education: A Multidisciplinary Journal⇛vol. 50 no. 4 (2025)

From Bookkeeping to Business: How Financial Literacy Shapes Entrepreneurial Intention of College Students

Loui Maie De La Fuente | Allen Grace M. Sarmiento | Wendy T. Cortez

Discipline: Education

 

Abstract:

This study examines the impact of financial literacy on college students' entrepreneurial intentions, highlighting financial knowledge as a crucial factor in motivating business creation. Employing a quantitative causal research design, the study surveyed 344 college students using a structured online questionnaire. The instrument assessed four key dimensions of financial literacy, budgeting, saving, investing, and spending, and measured their impact on entrepreneurial intention through perceived desirability, entrepreneurship education, and entrepreneurial objectives. Data were analyzed using descriptive statistics, Spearman Rank-Order Correlation, and linear regression. The results reveal a significant positive relationship between financial literacy and entrepreneurial intention, with regression analysis indicating that financial literacy accounts for 47.6% of the variance in students' entrepreneurial intention. While respondents demonstrated positive behaviors in budgeting, saving, and spending, the findings highlighted a distinct lack of confidence and familiarity regarding investment. The study concludes that comprehensive financial knowledge empowers students to pursue entrepreneurial ventures with greater confidence. To address the identified gaps, the paper recommends that academic institutions integrate practical investment simulations, business incubation centers, and mentorship programs into their curricula to transform student interest into actual entrepreneurial activity.



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