Education Stream and Financial Literacy: Does It Matter? Evidence from Sri Lankan Undergraduates

The effect of educational streams on financial literacy in Sri Lankan university students is examined by comparing accounting and non-accounting undergraduates in this study. The study made use of a cross-sectional methodology that is recognised by a structured questionnaire encompassing three major variables, namely Financial Skill, Personal Financial Management, and Financial Literacy Awareness, administered to a total of 208 students, consisting of 104 accounting and 104 non-accounting students. The result from the Mann-Whitney U Test indicates that while accounting students indicated a consistently high mean ranking in respect of all three variables, none of these variables are significantly different from each other from a statistical perspective, following which the p-value is 0.127, 0.058, and 0.308, respectively. These outcomes underpin the statement that sleeper effects exist in respect of levels of financial literacy indifferent of educational streams, thus refuting the view that following an educational stream related to accounting would otherwise raise levels of financial literacy. This study contributes to the existing literature on financial literacy by highlighting the role of influences other than academic disciplines. It calls for targeted interventions in the form of practical financial education programs to address the deficiency in financial literacy. Future research might use individual characteristics and external factors, including family background and the availability of financial resources, to understand the determinants of financial literacy in diverse educational and cultural contexts.