The Impact of Financial Stress on Academic Performance: Empirical Evidence from Management Undergraduates at Rajarata University of Sri Lanka

Financial stress acts a significant part in shaping the academic performance and overall well-being of undergraduates. Students frequently endure worry and mental strain while they are struggling financially. Stress can diminish motivation, focus, and study time, which can ultimately result in poorer academic performance. Additionally, students who are under financial strain might have to work part-time jobs, cut back on their school hours, and yet participate in academic activities. Additionally, it may have an impact on their preparation for exams, attendance, and assignment submission. Long-term financial strain may potentially result in increased dropout rates and longer study periods. The study focuses on how undergraduates at Rajarata University of Sri Lanka's Faculty of Management Studies perform academically in relation to financial stress.
Thus, financial resources, financial behavior, self-concept, and financial well-being were the four characteristics used to assess financial stress. Using a quantitative study approach, 255 undergraduates out of 2000 were selected from four batches, providing primary data. Using SPSS software, descriptive statistics, correlation, and multiple regression analysis were used to examine the collected data. The findings showed that while financial resources and financial behavior had no discernible impact on academic performance, self-concept and financial well-being had a favorable and significant impact. The study's conclusion emphasizes the need for methods to improve psychological well-being, boost confidence, and lessen worry in order to manage student financial stress, which calls for more than just financial aid. These results have significant ramifications for future study, legislators, and educators. In order to prevent financial difficulties from impeding students' academic progress, it assists them in creating more effective support systems, such as financial aid programs, scholarships, and counseling services.