36 Redeemer’s University Journal of Management and Social Sciences, Vol. 7 (1) 2024 Influence of Student Financial Behaviour and Financial Stress on Parental Financial Socialisation and Academic Engagement: A Sequential Mediation Analysis Joy O. Obanawu and *Olubukola A. Wellington Department of Sociology & Social Work, Faculty of Social Sciences, Redeemer’s University, Ede, Osun State, Nigeria, *Correspondence: okeo@run.edu.ng/ +234 703 284 1162 ABSTRACT Financial well-being and academic engagement are integral facets of a student's holistic development. The principal objective of this research is to analyse the socio-demographic variables that impact the degree of parental financial socialisation among a sample of undergraduates enrolled in two universities in Ede, Osun State. An additional aim of this study was to investigate the potential mediating effect of financial stress and financial behaviour on the relationship between parental financial socialisation and students' academic engagement. The analysis comprised a sample of 387 undergraduates aged 15 to 24 (146 females and 241 males). The proposed models were assessed and data analyses were performed using quantitative approaches, specifically regression analyses using SPSS Hayes' PROCESS Model 6 with bootstrapping techniques. The results showed an indirect effect of parental financial socialisation on academic engagement via students’ financial behaviour and financial stress (β = 0.151, BootSE = 0.023, 95% CI = 0.101, 0.203). The study identified two significant mediation paths were: (1) financial behaviour (β = 0.170) and (2) a joint effect of financial behaviour and financial stress (β = -0.023). Specifically, students who had received more effective financial socialisation were more inclined to exhibit favourable financial behaviours, resulting in a reduced likelihood of experiencing financial stress and an increased likelihood of reporting higher academic engagement. This study's findings contribute to the existing empirical literature on financial socialisation and provide significant insights for policymakers, educators, and parents who aim to improve students' overall development in higher education. Keywords: University students, financial socialisation, academic engagement, financial stress, financial behaviour, sequential mediation mailto:okeo@run.edu.ng/ 37 Redeemer’s University Journal of Management and Social Sciences, Vol. 7 (1) 2024 INTRODUCTION The pursuit of higher education represents a vital juncture in the lives of individuals, which may be marked by numerous academic, personal, and financial challenges (Zhao et al., 2023). Financial well-being and academic engagement are integral facets of a student's holistic development (Porter & Umbach, 2019; Beer et al., 2020; Bowden et al., 2021). Financial well-being encompasses the ability to manage one's financial resources effectively, make informed financial decisions, and achieve a sense of economic security (Riitsalu et al., 2023). The transition from secondary to tertiary education often exposes students to heightened financial responsibilities, including tuition fees, living expenses, academic materials, recreation, and expanding variety of options to expend their financial resources on. Financial literacy and responsible money management are essential skills for young adults as they navigate the complexities of higher education and move toward financial independence. Furthermore, there is concern that financial stress and poor money management techniques may have an impact on students' academic performance and general participation in their studies (Moore et al., 2021; Munir & Zaheer, 2021). Recognizing the intersection of financial well-being and academic engagement, the concept of financial socialization emerges as a key variable in this relationship. Academic engagement among students is crucial to the growth of higher education because it enhances the development of the potentials of future workers, (Fredin et al., 2015). Academic engagement signifies the depth of involvement, interest, and commitment students invest in their educational pursuits (Amerstorfer et al., 2021). It encompasses not only active participation in classroom activities but also a proactive approach to learning, completion of assignments, interaction with professors, and engagement in extracurricular activities (Alonso-Tapia et al., 2023). According to Skinner et al. (2008), students' academic engagement level serves as a buffer against the challenges they encounter as youths and is essential for their successful completion of the learning process. Since many university students are taking on more autonomy in managing their personal finances for the first time (Arnett, 2015), these financial demands, if not managed adeptly, can engender financial stress, potentially impinging upon students' academic engagement and overall well-being. Earlier studies noted that students ranked finances as the second most distressing or challenging issue they encounter with academics being the primary concern (Moore et al., 2021; Egbuchu & Wori, 2023). According to Danes (1994) financial socialisation encompasses the acquisition and cultivation of beliefs, practices, conventions, and behaviours that foster financial stability and prosperity. Various socialisation agents, including family, school, peers, and media, contribute to promoting this process, but parents have been recognized as key agents (LeBaron-Black et al., 2023). Parental financial socialisation (PFS) is the process by which parents transmit values, attitudes, beliefs and behaviours about money to their children. It involves the process by which children are taught about financial practices and values from an early age by their parents, which can take many forms, including verbal discussions on financial matters, modelling behaviours, monitoring use of money, obtaining financial advice and support, and providing hands-on experiences with money (Buckley & Lee, 2021). Parents are regarded as the first teachers of children: Until they start to develop new habits of thinking and behaving financially, students often depend on the values, behaviours, standards, conventions, information, and practices that are employed in their families (Curran et al. 2018). According to Jorgensen et al., (2017) money attitudes and behaviours are generally formed during childhood and adolescence, with parents serving as key role models and primary sources of financial knowledge. 38 Redeemer’s University Journal of Management and Social Sciences, Vol. 7 (1) 2024 Theoretical Background The manner and content of financial education provided by parents to their children—or lack thereof—has an impact on the long-term financial stability of those children. Family financial socialisation (FFS) theory posits that parents impart financial knowledge to their offspring through two separate processes (Gudmunson & Danes, 2011). One such strategy involves explicit financial socialisation, which encompasses deliberate instruction and training that guardians expect to impart specific financial knowledge, attitudes, or competencies to their offspring. An additional strategy operates via implicit familial relationships and interactions that provide opportunities for children to observe and gain insight into financial discussions and activities within the family. According to Gudmunson and Danes (2011), financial socialisation outcomes such as financial attitudes, knowledge, financial behaviour, and well-being are linked to family socialisation processes. While financial knowledge is an important part of being financially socialized, Gudmunson and Danes (2011) argued that financial behaviour and, subsequently, financial well-being, according to their theory, constitute the ultimate objective. Financial behaviour refers to a consistent pattern of actions throughout time, such as making a living, investments, saving, expenditure, and making financial decisions. Therefore, financial behaviour is closely linked to financial stability and well- being. Financial stability encompasses subjective and objective aspects, including financial stress and satisfaction, earnings, savings, and indebtedness (Danes & Yang, 2014). Prior research has investigated the impact of parental financial communication, encompassing direct and indirect methods, such as parental financial monitoring. These studies have revealed a beneficial influence on the economic behaviours of young individuals, including proficient management of expenses, savings, and budgeting. Furthermore, these positive financial management behaviours have been found to predict the financial stability of young adults (Chowa & Despard, 2014; Jorgensen et al. 2017; Fan et al., 2022; Sabri et al., 2023; Mahapatra et al., 2024). The frequency and calibre of these two modalities of socialisation- implicit and explicit-is said to enhance parents' capacity to socialize their children financially. Additionally, the financial, cultural, and human capital assets present within the family influences the parents' capacity to socialise their children for positive financial outcomes; socioeconomic factors may partially account for this, according to Danes and Yang (2014). In Nigeria, with limited access to bursaries, loans or scholarships, many university students heavily rely on their parents for financial support to meet their academic expenses. Therefore, the financial attitudes, practices, and teachings of parents can play a crucial role in shaping how students perceive and handle money matters during their university years (Sabri et al., 2020). Financial socialisation within families can be a hidden asset in meeting the ever-shifting financial obligations of engaging in higher education (Jorgensen et al., 2017). Moreover, PFS can impact students' expectations and perceptions about financial support. Parents who openly discuss financial matters and set realistic expectations regarding financial contributions may help their children develop a more accurate understanding of the financial resources available to them. This can reduce the mismatch between students' financial expectations and the actual financial support they receive, thereby minimizing financial strain and economic pressure. Conversely, inadequate or unclear financial socialisation may lead to unrealistic 39 expectations and a greater likelihood of experiencing economic pressure due to unmet financial needs. Additionally, this deliberate parental involvement acts as a catalyst for enhanced academic engagement by freeing students from the pervasive distractions and preoccupations associated with Redeemer’s University Journal of Management and Social Sciences, Vol. 7 (1) 2024 financial uncertainty (Curran et al., 2018; LeBaron & Kelley, 2021). By alleviating financial stress, students can dedicate their mental and emotional resources wholeheartedly to academic pursuits, leading to heightened motivation, sustained focus, and improved academic performance (Moore et al., 2021; Contreras & Martinez et al., 2023). Ultimately, explicit parent-child financial socialisation not only fosters financial literacy and responsibility but may also engender a positive impact on students' overall college experience, allowing them to thrive academically and embrace the transformative opportunities higher education offers (Sabri et al., 2020). Present Study: While global literature on financial socialisation and its impacts is expanding, the Sub-Saharan African context, and particularly Nigeria, remains underrepresented in this body of research. Studies focusing on the intersections of PFS, financial behaviours, and academic engagement within the region are notably sparse, creating a substantial research gap that this study seeks to address. Although the impact of PFS, students' financial behaviour, financial stress, and academic engagement on the overall development of university students are significant, there is a lack of comprehensive research examining the multifaceted relationships between these factors. The current body of scholarship mostly concentrates on individual relationships, neglecting the interrelated nature of these factors within the university setting variables (Adams et al., 2016; Reid et al., 2020; Sabri et al., 2020; Moore et al., 2021). The objectives of this study is two-fold. The first goal is to identify the sociodemographic factors influencing the experience of parental financial socialisation among undergraduate students in Ede, Osun State, Nigeria. The second objective of this study is to construct a model to elucidate the nexus between exposure to PFS and student academic engagement. This study aims to determine if students' financial behaviour and financial stress work as independent mediators or if they show a sequential pattern of mediation between PFS and student academic engagement. Addressing this research vacuum is crucial due to its potential for informing targeted interventions and policies that enhance students' financial well-being and academic achievement. By demonstrating the causal connections among the variables specified, academics and professionals can formulate customised interventions to tackle the complex obstacles students in tertiary institutions encounter. METHODS Research Design: The survey design, a commonly used method for collecting quantitative data, was utilized in the present study. This design was chosen because it fit the study's objectives. Data were gathered from the participants simultaneously using a descriptive cross-sectional survey design. The design employed in this study is pertinent due to its capacity to concurrently analyse the characteristics of multiple participants and its lack of variable manipulation, in contrast to experimental research. Primary data was acquired by administering a structured questionnaire to the study participants. Study Participants: This study sampled undergraduate students in Redeemer's University and Federal polytechnic Ede, Osun State, Nigeria. Redeemer's University (RUN) is a private faith-based institution while the Federal Polytechnic Ede is a public tertiary institution founded by federal 40 government of Nigeria. The population for the study comprises undergraduate students from the two selected higher institutions. The sample size was calculated using the Cochran’s (1977) formula for the minimum sample size assuming a 50% prevalence of PFS (p), 1.96 critical value for 95% confidence interval (Zα/2), 5% error margin (d) and 10% attrition rate: N = (Zα/2) 2 * pq ÷ d 2 N = (1.96) 2 * (0.5) (0.5) ÷ 0.05 2 = 385 Redeemer’s University Journal of Management and Social Sciences, Vol. 7 (1) 2024 N = 385 + 38.5 N = ≈ 424 participants. Two hundred and twelve (212) first year students each were selected from both schools; however, only 387 (91.3%) of correctly completed questionnaires were utilised for data analysis. Ethical Considerations: Throughout this investigation, adherence to the principles delineated in the Declaration of Helsinki was maintained (World Medical Association, 2013). All participants were made aware of the study's purpose, that their involvement was entirely voluntary, and that they might discontinue at any moment without penalty. They were also not required to reveal their identities and were assured that their data would remain anonymous and confidential. The Ethical Committee of the author’s university approved the study, which assigned the approval number xxx/REC/2023/089. Research Instruments: For the data collection, a structured questionnaire containing both closed- ended and Likert-scale questions was utilised. It covers topics related to parental financial socialisation, financial habits, financial stress and academic engagement. The questionnaire was pre- tested with a small group of students (n = 40) from both schools to ensure clarity and validity. Items related to PFS and financial behaviours were adopted from Shim et al. (2010; 2015). On a five-point Likert scale ranging from zero (indicating never) to four (indicating always), respondents were requested to rate the frequency with which their parents communicated with them and modelled various financial behaviours. The alpha value of Cronbach's for this scale was 0.85. Financial behaviour was measured by asking the participants to indicate on a 5-point scale from 1 (never) to 5 (always) how frequently they had engaged in eight different financial behaviours within the past 6 months (2020; 2021). Higher scores indicated engagement in positive financial behaviours. Cronbach’s alpha for this scale was 0.63. The Engagement and Disaffection Scale developed by Skinner et al. (2009) was used to measure academic engagement. Behavioural and affective dimensions of academic engagement are assessed using five items each on the corresponding scales. The items are evaluated using a Likert scale from 1 (strongly disagree) to 5 (strongly agree), with greater agreement or strong disagreement indicated by higher scores. The Cronbach's alpha coefficient for this scale was 0.68. The current study also considered possible confounding variables that may influence the outcome variables. These variables include participants’ age, gender (male or female), their parents’ educational qualifications, experience of family financial difficulties in the past six months (yes or no), and academic motivation. An eight-item scale (Gillig et al. 2013) examined students' intrinsic motivation to perform academic tasks (Cronbach alpha = 0.80). The scale measures a student's inclination to work hard to learn educational material, read more than required in class out of interest, and appreciate the challenge of learning a challenging new topic. Higher scores indicated higher academic motivation on Likert scales from strongly disagree (1) to agree (5) strongly. Data Analysis 41 The statistical analyses were conducted using SPSS 23.0, with statistical significance at the alpha level of 0.05. Descriptive statistics are used to provide a detailed analysis of the characteristics of the individuals. Categorical variables were represented as counts with their respective percentages, whereas continuous variables were displayed as means accompanied by standard deviations. Subsequently, Pearson correlation coefficients were calculated to investigate the relationship between the main variables of the study. To assess the hypotheses and ascertain the potential paths through which parental financial socialisation influences participants' academic engagement, bootstrapping analyses were performed Redeemer’s University Journal of Management and Social Sciences, Vol. 7 (1) 2024 using SPSS PROCESS macro version 4.0. The predictor variable was PFS, the mediator variables were students' financial behaviour and financial stress, and the outcome variable was academic engagement. Sequential mediation analysis is a statistical technique employed to investigate how a variable influences another variable through a sequence of intermediate variables known as mediators. It is an extension of conventional mediation analysis, which investigates an independent variable's direct and indirect impacts on a dependent variable through a single mediator. Sequential mediation analysis involves testing several mediators in a specific order, where the impact of the independent variable is conveyed through one mediator to the next, finally impacting the dependent variable. Specifically, this study examines the model specifying that PFS initially affects students' financial behaviours, which subsequently have an impact on their levels of financial stress, ultimately influencing their degree of academic engagement. For the sequential mediation analyses (Model 6) of the PROCESS macro, 5000 samples and 95% confidence intervals (CI) were bootstrapped. Determining statistical significance at the 0.05 level requires that the 95% CI of the mediation effect isn't inclusive of zero (0) (Hayes, 2022). As control variables, the mediation models incorporated the participants' age, employment status, and academic motivation. Results Sociodemographic characteristics of the study participants The final sample comprised 241 (62.3%) males and 146 (37.7%) females. Age ranged from 15 to 24 years with majority falling within the 20-24 years category (41.6%, N = 161), followed by the 15-17 years category (31.3%, N = 121) and the 18-19 years category (27.1%, N = 105). Two hundred and ninety-five participants (76.2%) hailed from two-parent families, 116 (22.4%) earned a personal income, and majority had mothers (71.6%, n = 277) and fathers (70.5%, n = 273) with a tertiary education. The majority of individuals (77.4%, N = 288) did not report encountering family financial difficulties (25.6%, N = 99), while a small minority (25.6%) did. A greater percentage of respondents (57.9%, N = 224) indicated they had acquired a high level of PFS. In contrast, the sample's financial behaviour was relatively balanced, with 50.1% (N = 194) of participants displaying poor financial behaviour and 49.9% (N = 193) demonstrating positive financial behaviour. In terms of academic engagement, the participants were also distributed equitably; 52.7% (N = 204) displayed a low level of engagement, while 47.3% (N = 183) demonstrated a high level of engagement in academic activities. Details are in Table 1: 42 Redeemer’s University Journal of Management and Social Sciences, Vol. 7 (1) 2024 Table 1: Distribution of Respondents by Socio-demographic Characteristics (N = 387) Variables Distribution Frequency (N) Percentage (%) Gender Male 241 62.3 Female 146 37.7 Age 15-17 Years 121 31.3 18-19 Years 105 27.1 20-24 Years 161 41.6 Family type Two Parents Family 295 76.2 Others 92 23.8 Institution Type Private Institution 200 51.7 Public Institution 187 48.3 Earning a personal income Yes 116 22.4 No 281 72.6 Mother’s Education Primary 10 2.6 Secondary 100 25.8 Tertiary 277 71.6 Father’s Education Primary 20 5.2 Secondary 94 24.3 Tertiary 273 70.5 Family financial difficulties Yes No 99 288 25.6 77.4 Financial socialisation Low High 163 224 42.1 57.9 Financial behaviour Poor Positive 194 193 50.1 49.9 Academic engagement Low High 204 183 52.7 47.3 Descriptive statistics and correlation analysis The correlation matrix (Table 2) displays multiple relationships among the studied variables. The study found that PFS is positively associated with participants’ age (r = .19, p < .01), mother's education (r = .25, p < .01), and father's education (r = .20, p < .01). This suggests that individuals who receive more PFS tend to be older and come from families with higher levels of parental education. Moreover, there are significant positive associations between students’ financial behaviour and PFS (r = .50, p < .01), academic engagement (r = .39, p < .01), and academic motivation (r = .28, p < .01). This indicates that students who have been exposed to more financial 43 socialization tend to display more favourable financial behaviours, as well as higher levels of academic engagement and motivation. Participants who report higher levels of financial stress are more likely to display poor financial behaviours, lower levels of academic engagement and motivation. The analysis shows a positive relationship between academic engagement and academic motivation (r = .29, p < .01), indicating that students with higher academic motivation are likelier to engage in their academic pursuits. 44 Redeemer’s University Journal of Management and Social Sciences, Vol. 7 (1) 2024 Table 2: Correlation matrix showing bivariate association among the study variables (N = 387) Variables 1 2 3 4 5 6 7 8 9 10 1. Gender - 2. Age .21** - 3. Mother’s education .04 .24** - 4. Father’s education .07 .15** .29** - 5. Family financial difficulties .07 .25** .11* .05 - 6. Financial socialization -.01 .19** .25** .20** -.06 - 7. Financial behaviour .08 .45** .42** .29** .14** .50** - 8. Financial stress .02 -.23** -.31** -.36** .02 -.29** -.63** - 9. Academic engagement .12 .50** .25** .15** .17** .39** .61** -.28** - 10. Academic motivation .05 .21** .29** .28** -.01 .28** .58** -.56** .29** - Mean - - - - - 34.55 15.20 21.32 29.94 13.80 SD - - - - - 7.33 4.14 8.92 8.78 4.75 Note: ** p < .01, * p < .05 Gender is coded: male = 1; female = 2 Family financial difficulties is coded: yes = 1; no = 2 45 Redeemer’s University Journal of Management and Social Sciences, Vol. 7 (1) 2024 Sequential mediation analysis: Table 3 presents the results of an investigation into the mediating effects of students' financial behaviour and financial duress on the relationship between PFS and academic engagement, utilizing adjusted sequential mediation models. The analyses unveiled that only two path coefficients of the model exhibited statistical significance. Therefore, there were significant relationships observed between PFS and students' financial behaviour (β = 0.327, p < 0.001) as well as academic engagement (β = 0.130, p < 0.05). Students’ financial behaviour was inversely associated with financial stress (β = -0.481, p < 0.001), and positively associated with academic engagement (β = 0.519, p < 0.001). Students’ financial stress was positively associated with academic engagement (β = 0.143, p < 0.001). The direct relationship between PFS and students' academic engagement remained significant even after considering potential mediators. This suggests that financial behaviour and stress partially mediate the connection between PFS and students' academic engagement. Table 3: Regression coefficients for the sequential mediation analysis (N = 387). Outcome Predictor R R 2 F β 95% CI Financial behaviour Parental financial socialization .738 .545*** 153.063 .327*** .859, .610 Financial stress Parental financial socialization .67 .45*** 79.97 .023 -.072, .125 Financial behaviour -.481*** -.315, -.198 Academic engagement Parental financial socialization .685 .469*** 67.356 .130* .095, .456 Financial behaviour .519*** .394, .628 Financial stress .143*** .079, .447 Note: *** p < .001, * p < .05 CI = confidence interval Models were adjusted for participants’ age, work status, and academic motivation. The table shows standardized beta values of the sequential mediation models. The direct, indirect, and total effects are shown in Table 4. Table 4 shows that there was a significant total indirect effect of PFS on academic engagement through financial behaviour and financial stress (β = 0.151, BootSE = 0.023, 95% CI = 0.101, 0.203), as well as a significant overall effect (β = 0.596, BootSE = 0.091, 95% CI = 0.418, 0.774). The study found that PFS significantly impacted academic engagement (β = 0.276, BootSE = 0.092, 95% CI = 0.096, 0.456), thereby verifying hypothesis one. Using 5000 bootstrap samples, the 95% CI estimation procedure derived from bootstrap did not include zero for two outcomes. PFS was found to have an indirect effect on students' academic engagement via significant mediation pathways, including (1) financial behaviour (β = 170, BootSE = 0.026, 95% CI = 0.121, 0.224) and (2) financial behaviour and financial stress (β = -0.023, BootSE = 0.009, 95% CI = -0.042, -0.006). 46 Redeemer’s University Journal of Management and Social Sciences, Vol. 7 (1) 2024 Table 4: Total, direct, and indirect effects of parental financial socialization on students’ academic engagement via students’ financial behaviour and financial stress. (N = 387) Path models β Boot SE Boot 95% CI Total effect: PFsoc AE .596*** .091 .417, .774 Direct effect: Fsoc AE .276* .092 .095, .456 Total indirect effect: Fsoc AE .151 .023 .101, .203 Fsoc FB AE .170 .026 .121, .224 Fsoc FST AE .003 .007 -.009, .-019 Fsoc FB FST AE -.023 .009 -.042, -.006 Note: Note: ** p < .001, * p < .05 PFsoc = Parental financial socialization; AE = Academic engagement; FB = Financial behaviour; FST = Financial stress; SE = standard error; CI = confidence interval Models were adjusted for participants’ age, work status, and academic motivation. Bold values indicate statistically significant mediation pathways. The table shows standardized indirect effects with bootstrapped SEs of the sequential mediation models. DISCUSSION Given the expenses involved in acquiring a good university education, many students find that their academic and financial responsibilities are interwoven. This study investigated the direct and indirect relationships between PFS and academic engagement among university students. Specifically, the influence of students' financial behaviour and financial stress in mediating this relationship, was examined, utilizing a sequential mediation analysis. The first objective of the current study was to determine which sociodemographic variables influenced the participants' experiences of financial socialization with their parents. The correlation results indicated that levels of financial socialization was positively associated with parental educational qualification. Complementary analyses of average financial socialization scores across participants’ maternal and parental educational levels (results not shown) showed that participants whose parents had higher academic degrees reported higher scores in financial socialization, demonstrating a graded relationship between parental education levels and financial socialisation outcomes. These findings are consistent with those reported in other research (Kardash et al., 2023; Ndou, 2024). Higher-educated parents are more likely understand financial concepts better; they know better about budgeting, investing, savings, and other financial topics. With this information, they may effectively teach their children about financial literacy, which is becoming increasingly necessary for financial success in today's complex economy. Moreover, parents with higher education may value education in general. They may prioritize teaching their children about life, including finances, to promote intellectual and personal development. The results, however, did not show any statistically significant variation in PFS based on the participants' gender. So far, studies in this area have shown contradictory findings. Serido et al. (2020) discovered that women experience more implicit financial parenting than men, and Garrison and Gutter (2010) found that parents are more likely to parent their boys financially. Parents in 47 Pakistan are more likely to teach their daughters than their boys about money management, according to research by AbdulGhafoor and Akhtar (2024). The finding is possible due to the societal assumption Redeemer’s University Journal of Management and Social Sciences, Vol. 7 (1) 2024 that women should be responsible for the household's budget. However, according to Ameer and Khan's (2020) research, adult men and women have distinct financial socialization experiences. Furthermore, the results indicated a positive correlation between PFS and participants’ age. This outcome could be attributed to several factors: Students' cognitive abilities develop with age, helping them to understand more complicated financial concepts and make informed decisions. Younger students may have less financial independence than older students, and still require parental financial oversight; older students on the other hand with more financial autonomy may have more experience with setting budgets, saving money, and making personal financial decisions (LeBaron et al. 2020). Findings from the regression analysis validate the existence of mediation pathways in the relationship between PFS and student academic engagement via financial behaviour and financial stress in sequence. These results indicates that PFS indirectly affects student academic engagement by fostering the adoption of prudent financial practices, thereby reducing the experience of financial stress which negatively impacts academic engagement (Vosylis & Erentaitė, 2020). This outcome implies that parents who actively participate in financial discussions and model healthy financial behaviours to their children have a beneficial impact on their academic engagement. The finding from the mediation models are supported by results from the correlation analysis. The significant positive relationship between PFS and student’s financial behaviour aligns with the findings of other investigations (Chowa & Despard, 2014; Jorgensen et al., 2017; LeBaron et al., 2020; Fan et al., 2022). Further examination of the findings indicates significant correlations between PFS and financial behaviour, financial stress, academic engagement, and academic motivation, thus highlighting the relationship that exists between financial capability and academic achievement. PFS can have a favourable impact on different aspects of academic engagement, such as motivation, goal-setting, and strength of character. Children who experience positive financial socialization from their parents may be more likely to show higher levels of academic engagement because they will internalize values that support academic success, like self-control, planning, and responsibility. Financial behaviours, such as the practice of budgeting, saving money, and avoiding debt, may prevent financial frustration for students, which might free up mental and emotional energy for concentrating on schoolwork. University students have well-documented financial difficulties, with concerns such as debt and budgeting skills hurting their financial well-being (Beer et al., 2020). Archuleta et al. (2013) noted that many students overspend due to poor budgeting. According to a study by Brougham et al. (2011), students at universities exhibit a higher propensity for compulsive purchasing behaviours, characterized by impulsive spending and irrational purchases, in comparison to the general population. Overspending and impulsive expenditures can escalate debt levels, hence intensifying the financial burden on individuals. With the increasing accessibility of new banking systems, digital financial services and technology, there is a growing prevalence of various ways to spend money and quickly obtain cash, along with the associated risks and obligations. Furthermore, the widespread proliferation of social media platforms in the entertainment, fashion, and technology sectors, together with the vulnerability of students to external influences, has played a role in the development of impulsive consumption tendencies (Jiang & Shi, 2016; Kyriazis, 2020). 48 When students face increased financial stress, they may develop coping mechanisms that influence their financial decisions and behaviours. These behaviours can include pursuing extra sources of income, working part-time, or using loans and credit to cover bills (Letkiewicz, 2016; McCormick et al., 2023). As a result, financial decisions made under stress can either relieve or increase the financial strain, influencing academic engagement. Furthermore, financial stress and Redeemer’s University Journal of Management and Social Sciences, Vol. 7 (1) 2024 worries stemming from poor financial behaviour can negatively impact academic engagement. Students under financial stress may encounter difficulties focusing during class since their minds are frequently engaged with financial anxieties and concerns, which could result in a higher rate of absenteeism (Pascoe et al., 2020). Financial stress can divert students’ attention and energy away from academic pursuits, leading to decreased motivation, lower academic performance, and reduced engagement in educational activities (Jones et al., 2018; Jessop et al., 2020; Reid et al., 2020; Moore et al. 2021). Also, as a result of financial strain, students may be less inclined to participate in school events (Richardson et al., 2017; Boe et al., 2021). This, in turn, can make it difficult for students to integrate socially and academically (Adams et al., 2016). Studies have observed that students who are financially stressed are more likely to take absences from school, reduce their coursework loads, take longer to graduate, and even quit school (Adams et al., 2016; Montalto et al. 2019). Ultimately, higher levels of academic engagement are associated with positive educational outcomes, including improved grades, higher graduation rates, and increased chances of success in the job market. Conversely, low academic engagement can lead to underachievement, increased dropout rates, and limited future prospects. Several study limitations should be considered. Because of the demographics of the sample group and the research context, the study's findings may not be generalizable. Results must be repeated in different research contexts. The utilization of self-reported data for variables such as financial behaviours and academic engagement may lead to response bias and impact the precision of the findings. Using objective measures or numerous data sources could improve the accuracy and reliability of the conclusions. Although the study found substantial relationships across factors, determining causality remains difficult. Longitudinal research or experimental designs may provide more compelling evidence for causal links between PFS, financial behaviour, financial stress, and academic engagement. Conclusion and Recommendations Parents have a significant impact on their children's motivation and success in school, according to the findings of this study. This goes beyond just being involved in school-related activities and encompasses a wider range of elements, including values, behaviours, socioeconomic status, and even financial socialization. Effective PFS can create an environment that is conducive to academic performance by minimising students’ financial stress. The findings of this study suggest that educational institutions and government agencies should prioritize financial literacy programs for young people. By integrating specialized financial education into academic curricula, students' financial literacy can be improved, and they will be better equipped to confront practical financial obstacles. By incorporating financial concepts into various academic disciplines, interdisciplinary approaches can strengthen comprehension and application. Also, support services, such as financial counselling and access to financial assistance resources, should be provided by universities to assist students in efficiently managing financial stress. 49 Moreover, it is essential to encourage parents to discuss finances with their children. Parents can enhance their children's academic engagement and financial decision-making by exemplifying sound financial practices and imparting knowledge on budgeting, saving, and debt management. 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