Managing Money: The Impact of Budgeting on Financial Security Among International Students in Finland.

Abstract

This thesis explores how budgeting affects the financial security of international students studying in Finland. The aim of the study was to understand budgeting habits, financial challenges, and students’ confidence in managing their finances. The research questions focused on identifying students' budgeting practices, their financial difficulties, and how budgeting impacts their financial well-being. A quantitative method was used, and data was collected through an online survey answered by 30 international students. The survey included questions about demographics, income, budgeting behavior, financial challenges, and financial security. The theoretical framework of the study was based on the Life-Cycle Hypothesis and Behavioral Finance Theory, as well as research on financial literacy and budgeting practices. The results showed that most students live with limited financial resources, but a large majority actively manage their budgets. Many students experienced financial difficulties and did not have enough savings for unexpected costs. However, those who practiced budgeting reported feeling more financially secure and confident in handling their finances. Challenges like high living costs, limited income sources, and restricted financial aid opportunities were common.

The conclusions highlight that budgeting plays an important role in helping international students manage their limited resources effectively and reduce financial stress. Limitations of the study include the use of convenience sampling and a small sample size, which may affect the generalizability of the results. Suggestions for future research include expanding the sample size and exploring differences between students from various countries and educational levels.