Pathways to Financial Behaviours Among Tanzanian University Students: Insights into the Mediating Role of Financial Literacy

This study investigates the relationship between Family Financial Socialisation (FFS), Financial Literacy (FL), and Financial Behaviour (FB) among university students, focusing on the mediating role of financial literacy. While previous research has examined the direct effects of family influence on financial behaviour, limited attention has been paid to the indirect mechanisms involved. This study employed a quantitative research design using a structured questionnaire administered to a sample of 460 university students. Data were analysed using Structural Equation Modelling (SEM) to assess both direct and indirect relationships among the variables. The findings reveal that family financial socialisation does not directly influence financial behaviour but has a strong positive effect on financial literacy, which, in turn, significantly predicts financial behaviour. The results confirm that financial literacy mediates the relationship between family financial socialisation and financial behaviour. This study contributes to the theory by demonstrating that family based financial interactions shape financial behaviour primarily through improved financial literacy. Practically, the findings highlight the importance of integrating structured financial literacy programs with informal family-based learning. The study recommends that policymakers, educators, and financial practitioners design holistic interventions that strengthen both family financial socialisation and formal financial education.