Financial Literacy and Debt Behaviour : a comparative study of Finnish and international university students in Helsinki

Abstract

This study investigates the relationship between financial literacy and debt behaviour among Finnish and international university students in Helsinki. Against a backdrop of rising student debt and economic uncertainty in Finland, the research employs a mixed-methods explanatory sequential design. A survey based on the OECD/INFE framework measured financial knowledge, behaviour, and attitudes, followed by semi-structured interviews to provide contextual depth. The findings reveal that while Finnish and international students possess similar levels of financial knowledge and reported financial behaviours, significant differences emerge in financial confidence and stress. Finnish students report higher confidence and lower stress, attributed to greater systemic familiarity and robust support networks. International students, despite comparable literacy scores, experience higher financial strain, influenced by structural barriers, cultural differences, and limited access to formal credit. The analysis shows that financial literacy is a strong predictor of responsible debt behaviour, but not a direct predictor of risky debt behaviour, which is more influenced by contextual factors like income and access. Behavioural biases, particularly overconfidence, play a critical mediating role. Notably, student debt behaviour is best understood as a dynamic continuum rather than a fixed binary. The study concludes that enhancing student financial well-being requires not only financial education but also targeted support systems that address the distinct contextual challenges faced by international students.