From financial knowledge to financial capability: The role of teaching and learning approaches among university students – A conceptual paper

Abstract

Financial literacy has become an increasingly important competency among university students as they navigate complex financial decisions and prepare for greater financial independence. However, conventional approaches to financial education that primarily emphasize transmitting financial knowledge may be insufficient to develop students’ ability to apply it in real-life situations. This conceptual paper examines the role of teaching and learning approaches in strengthening financial literacy and financial capability among university students. Three key strategies are proposed: implementing practical, contextualized financial education programs, aligning the curriculum with national financial literacy initiatives, and adopting teaching and learning approaches that empower students to make informed financial decisions. Furthermore, collaboration between educational institutions, government agencies, and financial industry stakeholders can strengthen the relevance and sustainability of financial education initiatives. This conceptual perspective contributes to the development of a more holistic approach to financial education and provides implications for educators and policymakers seeking to enhance students’ financial capability and long-term financial well-being.