The Impact of Allowances, Financial Management and Spending Behaviour on Academic Performance among University Students

Abstract

This study investigates the relationship between allowances, financial management, and spending behaviours on academic performance among Malaysian university students. Rising living costs are creating financial pressures that may impact academic achievement, making it essential to understand whether students’ financial decisions influence their academic performance. Using a quantitative research design, data were collected through a structured questionnaire administered to 200 students from Malaysian public universities using stratified random sampling. The survey captured demographic information, monthly allowance levels, financial management practices, spending behaviours, and academic performance. Data were analysed using IBM SPSS Statistics 27, employing Pearson correlation and multiple regression analyses. The findings show that monthly allowance has a weak positive correlation with academic performance (r = 0.21, p < 0.01) but does not significantly predict academic performance in the regression model (β = 0.12, p = 0.10). In contrast, financial management (r = 0.25, p < 0.01; β = 0.18, p = 0.02) and spending behaviour (r = 0.22, p < 0.01; β = 0.15, p = 0.03) demonstrate statistically significant positive relationships with academic performance. The regression model is statistically significant (F = 7.54, p < 0.001) and explains 10.3 percent of the variance in academic performance (R² = 0.103). Academic success depends more on how students manage money than how much they receive. The study suggests that financial discipline is key to better grades. It recommends that universities integrate financial literacy and counselling to improve students' academic performance and financial well-being.