Definition of the financial literacy has been in long discussion among researches and different meaning

of this statement has been employed by scholars. Until now there is no constant definition has been
developed yet. Usually, financial literacy, financial education and financial knowledge often have been
interchangeably in academic literature as well as in media. One definition of financial literacy is an
individual`s ability to understand, manage, analyze and control personal finance matters. Kozina &
Ponikvar, (2015) define financial literacy as a components of human capital that is used in financial
activities to increase individual`s financial well- being. According to Mahdzan &Tabiani, (2013) financial
literacy is basic skills and knowledge that persons need in order to survive in modern society.
Additionally, Krechovska (2015) stated that, the ability of secure personal income, capability to make
decisions on expenditures, consequences of personal decision on current and future income and
orientation on the job market are also another definition of the financial literacy. Especially now, in
twenty first century the financial product innovation, rearranging of the financial service industry,
technological and marketing advances as well as changes in pension, tax and retirement plans are
effecting to the consumers’ attitude and significantly influencing to their financial decision and hence
challenge the financial literacy (Agnew, 2006).Therefore, today financial literacy has became more
important tool than ever and it is vital to the long term well-being of all individuals. Thus, having an
effective level of financial literacy is important for everyone especially for younger generation that
increases effective accessibility of financial services and products. The benefits of the financial literacy
are widely reported globally but the lack of financial literacy leads a number of negative consequences.
Low level of personal financial literacy may lead to wrong financial decision that results into many
problems such as debt or even bankrupts of younger generation. On the other hand, financial literacy
not only important for individuals well- being but it has significant impact to the country`s economic as
well. The financially literate society is an important factor to any country and every country are needed
citizens who are financially literate. As the President of United States of America Barack Obama said that,
“Future prosperity depends on the financial security of all Americans, take time to improve our own
financial knowledge and share that knowledge with our children”. This word of Obama approves that,
the importance of financial literacy of younger generation is essential to the financial security of country
(Albeerdy & Gharleghi, 2015). (Hilgert, Hogarth & Baverly, 2003) added that, “financial literacy is the
application of knowledge, understanding, skills and values in financial contexts and the related decisions
that impact on self, others, the community and the environment”. Thus, financial literacy has impact not
only individual well-being, but on country`s economy as well. Financial literacy is fundamental for
younger adults when they are exposed to a selection of financial products and services where they need
to choose whilst embarking on their own major financial life cycle events such as acquiring a job, earning
their first salaries, secure student loans or managing their credit card spending. Besides that, lifestyle
aspirations spurred on by the influence of advertising and the media are also likely to increase younger
people reliance on debt. Hence, it is a vital for students to be financially literate in order to be strong and
confident in their financial life cycle (Fear &O`brein, 2009). The first year of student life is vital
transitional stage of development within the larger transitional period because; most of the students are
not yet financially independent. Moreover, they perceive this independence as key to achieve adult
status. If for these youngsters are not provided a suitable financial literacy curriculum or knowledge the
students will be needed support for them to enhance their skills in purchase behavior and saving
whereby they can take challenge their potential of accumulating wealth at an early stage (Cameron et
al.,2014)

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 Money Attitude and its relationship with Financial Literacy Today attitudes towards money and the
meaning of money also have become important topics for scholars in the area of finance, economic and
consumer’s psychology (Dowling, Corney & Hoiles, 2013). Money is an important issue for an individual
and it is not only utilitarian commodity but also an emotional representation of worth or through
symbolic meaning. Traditionally money is studied from the point of its economic sense. First off all
money performs economic function around the world such as payment and accumulation, medium of
exchange and measure of the cost of goods. But, now studies found that money have not only economic
issue but also acquired psychological and social features (Simkiv, 2013) According to Moskalenko, (2004)
money makes changes and influence the individual`s life undoubtedly effect the development of the
country`s economy, politics and culture. Moreover, money has been recognized as a motivator of
behavior and factor that creates job satisfaction.

For instance, person falls under influence of money as money becomes an instrument to satisfy person`s
own needs and goals. Furthermore, attitude refers to psychological tendency that is conveyed by
assessing a particular entity with some degree of service or disgrace. Attitude can be defined as an
assessment of the degree to which one likes performing the behavior. Meanwhile attitude has taken
significant role in researches that influence feelings, thoughts and consumer’s decision making process
(Zhang &Kim, 2013). This is to say that student’s attitude towards money may shape their knowledge
financially. So in some point value of money will eventually effect on person`s literacy financially.
Therefore, having a positive attitude towards money will influence student`s behavior to gain more
financial knowledge and literacy in order to increase personal money management. Whereas, poor
negative money attitude will lead to the poor management of the personal money whereas it can be
related to the theory of reasoned action. Moreover, Grable & Joo (2001) have done research among
students and added that; money attitude is related to children being open about their financial situation
with their parents. Hence, by having positive money attitude an individual`s concerns about their current
financial situation and they try to know how to manage money in order to be financially stable.
According to (Das, 2014) The Theory of Reasoned Action speculates that, in an individual`s decision
making process an attitude of the person is a direct predictor to the behavioral intention. The theory of
Reasoned Action was developed by Martin Fishbein and Icek Aizen in 1967 and theory explore that,
individuals will behave based on their preexisting attitudes and behavioral intentions. Thus, within
current theory, an attitude of the person to the specific object will lead to the individual`s basic
motivation to perform an action. Hence, if we link to the theory, with money attitude of the students
towards financial literacy, student`s money attitude will influence to learn financial literacy or develop
financial skills in order to get successful money management in future. Moreover, theory suggests that,
the stronger attitude lead to increased effort to perform the behavior, which also increases the likelihood
for the behavior to be performed well. Thus, student`s attitude towards money is critically important to
the be financially literate. Thus, specific money attitudes are related to self- direction and values implying
that those attitudes of the person likely will get connection with a self- directed behavior for security
such as financial knowledge seeking. All in all, it depends on how students value of money in order to
seek knowledge how to manage their income. Then, it may activate the student’s intention to acquire
skills required for having a better knowledge in area of finance (Hayhoe et al., 2000) Furthermore,
another reason forcing students to be financially literate is changes of society which has influenced
human being in twenty first decades. It is because, in this modern society, moral values are becoming

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 less important and the world is turning into a more materialistic concept whereby young generation are
more concerned with the earning money rather than believing in conservative beliefs of their
forefathers. Therefore, money become more important value for most individuals and it is acting as a
motivation for younger that influencing to order to become more financially literate than previous
generation (Wilhelm & Haynoe, 1999). Additionally, Kidwell & Turrisi (2004) have done research on the
budgeting tendencies of students and have founded that, students with high confidence with their skills
to keep a budget were able to justify reason for keeping budget and they perceived money as normative
expectances. But on the other hand, student with low control of their budgeting relied more on their
emotional feelings towards budgeting rather than cognitive beliefs. It is understood that, it will depend
on perception of students towards money in order to be able to set an appropriate budget for them.
Thus, based on their attitude, perceptions, feeling and thoughts students will decide to increase their
knowledge or not. Furthermore, a considerable of studies found that money attitude positively affects to
the level of the financial literacy among students. In overall, (Wu and Lo, 2009) taking salient outcomes
of Fishbein`s behavior intention model there is positive effect of money attitude towards financial
behavior of the students. Thus, based on the significant researches supports following hypothesis can be
given: H3: There is relationship between money attitude and financial literacy

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