Abstract
This study investigates determinants of financial behavior (FB) of uni-
versity students at a university in South Africa. It examines whether financial behavior,
confidence, time preferences, risk preferences and financial literacy per- ceptions of university
students differ by financial literacy level. Data were gathered via a questionnaire that included
personal information, FB, financial perceptions and financial knowledge responses as well as a
multiple price list (MPL) risk preferences and time preferences experiment tasks. A convenient
total sample of 191 students (females = 53%) participated in the study. A t-test analysis showed
that FB, risk preferences, confidence levels, time preferences and financial literacy perceptions
of university students significantly differed by financial literacy level. Our results show that
university students with low financial literacy levels are more overconfi- dent, risk loving and
impatient; such FB is synonymous with major causes of financial crises across the world. An OLS
regression model analysis showed that the risk preferences index, financial literacy perception
index and confidence signifi-
cantly influenced the FB of categorized university students.
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