Browsing by Author "Christel Joy Arinaitwe"

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    The impact of financial literacy on debt management of university students: A case study of Uganda Christian University
    (Uganda Christian University, 2026-04-16) Christel Joy Arinaitwe
    Financial literacy is increasingly recognised as a critical factor influencing individuals’ ability to manage personal finances and make informed borrowing decisions. This study addresses the impact of financial literacy on debt management among students at Uganda Christian University (UCU), emphasizing that many students rely on loans and credit but lack sufficient financial knowledge to manage debt effectively. The study also addresses low financial literacy levels as one of the key causes of poor budgeting, delayed repayments, and financial stress among the youth. Therefore, the study addresses its purpose, objectives, research questions, scope, and significance to inform policies and educational strategies to promote responsible financial behaviour among university students.The study shows the theoretical and empirical literature on financial literacy and debt management among university students, guided by behavioural and economic theories. It identifies financial literacy—particularly knowledge of financial products, risk management, and investment—as a key factor influencing responsible debt management practices such as budgeting and repayment strategies. These studies show a positive relationship between financial literacy and effective debt management, although factors such as income levels and access to financial services may affect this relationship. The study also identified a gap in context-specific research on financial literacy and debt management among university students in Uganda, particularly at Uganda Christian University. This study used a mixed-methods design and stratified random sampling. Data collected from 51 respondents revealed generally high levels of financial literacy, with students demonstrating awareness of budgeting, emergency planning, and responsible borrowing practices. A comparison between business students displayed slightly stronger financial planning practices than non-business students. However, the findings also showed that financial knowledge does not always translate into consistent financial discipline. Mobile money loans were identified as the most common source of debt, reflecting the influence of accessibility and convenience on borrowing behaviour. This study was limited by time and resource constraints, self-reported data, and a single-institution sample, which were mitigated through stratified sampling, use of free online resources, structured scheduling, and anonymity to enhance reliability. Overall, the study concludes that the practical application of financial knowledge, and strengthening financial education, responsible lending practices, and proactive financial behaviours such as budgeting, saving, and controlled borrowing are needed to improve student financial outcomes.