Exposure to inflation and financial vulnerability : examining adaptability as a buffering mechanism.

Inflation significantly strains household budgets, disproportionately affecting college students with limited resources. Rising costs for essentials and education heighten financial vulnerability, while adaptability may serve as a coping mechanism. This study examines whether financial adaptability moderates the relationship between inflation exposure and vulnerability. A quantitative descriptive-correlational design was employed, targeting 250 college students from a university in Cebu City, Philippines. Data were collected via an online survey using a structured questionnaire with three scales: exposure to inflation dynamics, financial adaptability, and financial vulnerability. Reliability coefficients were .8741, .7334, and .5644, respectively. Regression analyses tested direct and moderating relationships among variables. Respondents strongly agreed that inflation impacts daily expenses and education costs (M = 4.34), while showing considerable adaptability through expense adjustments and cutbacks (M = 4.11). Financial vulnerability remained high (M = 4.15), with difficulties in saving and managing unexpected costs. Regression analysis revealed significant positive associations: inflation exposure predicted vulnerability (β = 0.2189, p < .001) and adaptability (β = 0.7022, p < .001). Multiple regression indicated that adaptability moderates but does not eliminate vulnerability (R² = .141). Inflation exerts a dual effect—driving adaptive behaviors while sustaining financial fragility. Strengthening financial literacy and self-efficacy is essential to enhance resilience. Policy interventions should address education costs and promote accessible financial tools to mitigate inflation’s adverse impacts.