Financial Literacy: Challenges for Non-Local Aviation Technology Students

Financial literacy is a fundamental competency that enables university students to manage financial resources effectively and cope with the economic demands of higher education. This study examined the financial literacy, allowance and expense management, budgeting practices, and financial challenges of non-local Aviation Technology students at Indiana Aerospace University. Specifically, it assessed students' financial literacy, identified common financial management practices, ranked the financial challenges encountered, and proposed an action plan to strengthen students' financial capability. A mixed-method research design employing a convergent parallel approach was utilized. Quantitative data were collected through a researcher-developed, validated questionnaire administered to 100 non-local Aviation Technology students selected using simple random sampling, while qualitative responses provided additional insights into students' financial experiences. Quantitative data were analyzed using frequency, percentage, weighted mean, and standard deviation, whereas qualitative responses were subjected to thematic analysis. The findings revealed that respondents demonstrated a high level of financial literacy, exhibiting a strong understanding of fundamental financial concepts and responsible management of their allowances by prioritizing essential expenditures and practicing budgeting. However, students continued to experience financial challenges, particularly impulsive spending, difficulty managing unexpected expenses, inconsistent saving habits, social pressure to overspend, and depletion of allowances before the next financial support period. These findings indicate that although students possess adequate financial knowledge, maintaining consistent financial behaviors remains challenging due to environmental and behavioral factors associated with living away from home. The study concludes that financial literacy should be reinforced through continuous financial education and practical budgeting interventions. It recommends implementing university-based financial literacy programs, budgeting workshops, emergency fund planning, and savings promotion initiatives to enhance students' financial resilience, reduce financial stress, and support their academic success.