Beyond the Books: How Basic Accounting Knowledge Shapes Student Leisure Spending and Budgeting
Keywords:
Financial literacy, accounting education, discretionary spending, budgeting, college students, financial behaviour, contingency planning.Abstract
Introduction/Main Objectives: This study examines whether specialized academic training in basic accounting principles transfers into superior personal financial management among emerging adults, specifically focusing on leisure spending, budgeting, and handling unexpected costs.
Background Problems: A persistent financial knowledge-behaviour gap exists where young adults possess financial knowledge but fail to practice responsible financial behaviour. The research question is: Do accounting students demonstrate significantly better financial behaviour in spending control, budget preparation, and contingency planning compared to general business studies students?
Research Methods: A quantitative comparative design was employed using self-administered online surveys (Google Forms) with 232 commerce department diploma students (Diploma in Accountancy, n=103; Diploma in Business Studies, n=129; aged 19-25). Independent samples t-tests were conducted to compare mean scores across three financial behaviour constructs.
Finding/Results: Accounting students showed significantly more responsible spending habits (Mean=3.921) than business studies students (Mean=3.692; p=0.001). However, no significant differences were found for budget preparation (p=0.062) or managing hidden costs/unexpected expenses (p=0.091).
Conclusion: Basic accounting knowledge specifically improves discretionary spending control but does not automatically enhance broader budgeting competencies or contingency planning. Accounting educators should informally integrate personal budgeting and emergency fund concepts into existing curricula to close remaining behavioural gaps.
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