The impact of price increase and spending power to financial stress and spending behavior among university students.

Rising prices and reduced spending power have become major challenges for university students, affecting their financial behavior and emotional well-being. This study examines how inflation-driven economic pressures influence students’ financial stress and purchasing decisions. A descriptive-correlational design was used, involving 388 college students from a university in Cebu City, Philippines. Data were collected through a structured online survey using a 5-point Likert scale to measure perceptions of price increases, spending power, financial stress, and purchasing behavior. Descriptive statistics and Pearson correlation analysis were applied. Findings show strong agreement that prices of basic goods and services have increased (mean = 4.408) and that students’ spending power is insufficient (mean = 3.803). Students reported adopting cost-saving strategies such as prioritizing necessities, delaying non-essential purchases, and choosing cheaper alternatives (mean = 4.289). Financial stress was also high (mean = 3.899), with anxiety and frustration common among respondents. Correlation analysis revealed a strong positive relationship between price increases and purchasing behavior (r = .664, p < .001) and moderate correlations between spending power and financial stress (r = .522, p < .001). Inflation significantly impacts students’ financial decisions and mental well-being. Institutions should consider flexible payment schemes, financial aid, and programs that promote financial literacy and stress management. Future research may explore long-term effects on academic performance, mental health, and the role of digital financial tools in improving resilience.