Financial Stress and Mental Health among University Students

Abstract

Financial stress has emerged as a critical issue among university students, significantly influencing not only their academic performance but also their mental and emotional well-being. With the continuous rise in tuition fees, increasing cost of living, and growing dependence on student loans, many students experience persistent financial pressure throughout their academic journey. This study examines the relationship between financial stress and mental health among university students by analysing major financial stressors such as educational expenses, accommodation costs, daily living requirements, and debt obligations.

The research is based on a secondary data approach, drawing insights from existing literature, research articles, government reports, and institutional surveys to identify patterns, trends, and key outcomes. The study further explores how financial stress contributes to various psychological issues, including anxiety, depression, reduced self-esteem, and overall psychological distress, while also impacting academic engagement, concentration, and performance.

The findings reveal a strong and consistent correlation between financial difficulties and deteriorating mental health conditions among students. Additionally, the study identifies that inadequate financial literacy, lack of institutional support, and limited access to coping resources further intensify stress levels. It emphasizes the importance of integrated strategies involving financial assistance programs, student counselling services, and financial education initiatives.

The study concludes that addressing financial stress requires a holistic and multi-dimensional approach, combining policy-level interventions, institutional support systems, and individual coping strategies to enhance students’ overall well-being and academic success.