1.

INTRODUCTION

A budget is the numerical representation of a financial plan for anticipated project costs over a
specific time period (Patil, 2019). Mental accounting (MA) is a set of mental operations that
people and families use to organize, evaluate, and keep track of their finances (Thaler, 1999).
Fennema and Perkins (2008) say that mental budgeting is a way to make decisions by comparing
total costs (including sunk costs and expected future costs) to total expected benefits. It has been
widely used to anticipate and alter behavior (TPB—Ajzen, Organizational Behavior, and Human
Decision Processes, 1991, 50, 179–211; Ajzen, Handbook of Theories of Social Psychology,
2012, 1, 438–459, Ajzen, 2020). The theory of planned behavior (TPB) has been used well to
explain and predict behavior in a wide range of behavioral domains, from safer sex to consumer
behavior, from recycling to modes of transportation, and from technology adoption to privacy
protection. According to Ajzen (2020), the TPB begins with a clear characterization of the
behavior of interest in terms of its goal, the activity involved, the environment in which it takes
place, and the timing.

With the industry's ongoing expansion, there is a growing need for skilled workers and, as a
result, more job opportunities are becoming available. This is particularly advantageous for
international students who are seeking to gain valuable work experience and establish themselves
within the field (C. H. Chen & Zimitat, 2006; Yang, 2007). The increasing levels of prosperity in
sending countries, the increased demand for tertiary education, the anticipated economic and
social benefits of studying abroad, and the commercialization of higher education in host
countries are all contributing factors to this rapid growth (Hughes, 1988; Mazzarol & Southar,
2002; Nafari, Arab; and Ghaffari, 2017). But in order to do well in school, university students
must also deal with a number of problems, such as managing their time and money, not getting
enough sleep, social obligations, and, for some, taking care of their families. The majority of
recent research has focused on how university students manage their finances because statistics
show that most of them don't budget their spending and therefore unexpectedly get into financial
difficulties (Ansong and Gyensare, 2012).
Also, research shows that help and scholarships, difficulties with costs, and the climate of the
home country are what motivate Iranian students to go to college abroad. Still, language, value
and prestige of studying abroad, and employment and career concerns in the home country were
found to be the least important criteria (Nafari, Arab, and Ghaffari, 2017).

By considering the above it is obvious that the financial challenges of students should be
considered, so we aimed to find out what makes Iranian students in Europe conduct financial
planning, we will first give a brief overview of the theory of planned behavior. Then, we'll come
up with a hypothesis, and finally, we'll show how we collected data and what we found.

2. REVIEW OF LITERATURE

According to the theory of planned behavior, taking a look at the behavioral intention of an
individual is the most effective method for predicting and comprehending the behavior of that
individual (Ajzen, 1991). In addition to this, Ajez made the observation that predicting the
behavior of the individual is affected by attitude, subjective norms, and the perception of one's
own behavioral control (PBC).

The intensity of a person's positive or negative feelings toward a particular thing or toward their
intention to engage in a certain action is referred to as that person's attitude toward that item or
action (Ajzen & Fishbein, 2000). The degree to which individuals evaluate certain activities
favorably will play a role in the construction of their later intentions. The researchers Fisbein and
Ajzen (1975) separated attitudes into two distinct groups: those that were directed toward
specific behaviors and those that were directed toward objects. When it comes to conducting, a
person's attitude is determined by the perceived effects of engaging in the behavior of interest
and the person's subjective assessment of those effects, whereas a person's attitude toward an
item is determined by the person's beliefs about the item and their implicit assessment of those
beliefs.

Subjective norms are a person's perspective on the significance of other people's or groups'
acceptance or disapproval of participating in a certain activity. This might be in the form of
approval or disapproval (Ajzen 1991). People's families, significant others, and close friends are
typical candidates for the role of important other referents. In other world, perceptions of the
subjective norms that are relevant to a particular behavior are a reflection of one's assessments of
the ways in which other people feel about that behavior.

PBC is an abbreviation that stands for the individual's perception of how easy or difficult it is to
carry out the action. A person's perspective on the Goal takes into consideration both their prior
experiences and any potential obstacles or other factors that may stand in the way of it being
fulfilled (Ajzen 1991). Another theory developed by Ajzen that deserves to be brought to your
attention at this point is the Theory of Reasoned Action (Ajzen 1988; Ajzen 1991), which
contends that intentions alone are sufficient in forecasting behaviors that individuals have full
volitional control over. It is imperative that you emphasize this theory, Ajzen provided a rebuttal
to this by arguing that PBC becomes more important in directly influencing later behavior when
volitional control over conduct begins to deteriorate.

TBP has recently been used in the majority of studies, including tourism (Ulker-Demirel and
Ciftci, 2020) and entrepreneurship (Al-Mamary and Alraja, 2022, Lortie and Castogiovanni,
2015) food for a healthy life (Ruentip and Santhosh Ayathupady, 2019) banking (Abu-Taieh et
al., 2022) social media networking (Feng et al., 2021) education (Mazlina, Aini and Wan
Zuraida, 2022) transportation (Djokic et al., 2023) and financial difficulty in the household
(Gamel et al., 2022).

Moreover, no recent studies have been done on how students deal with money problems based
on TBP, and only a few studies have been done on banking for students (Tucker, Jubb, and Yap,
2019) Financial attitudes on financial behavior among University Students (Yahaya et al., 2019)
Financial behavior and quality of life of college students (Xiao et al., 2007). In this study, we
attempted to find responses to assumptions based on research literature on the financial planning
of Iranian students in Europe.

3. QUESTION
The main question is:
How can financial planning be predicted among Iranian students studying in Europe?
The sub-questions are:
A. How strong is the link between mental budgeting attitudes and financial planning among
Iranian students studying in Europe?
B. How strong is the link between financial incentives and financial planning among Iranian
students studying in Europe?
C. How strong is the link between past behavior and financial planning among Iranian
students studying in Europe?

4. HYPOTHISES

According to the conceptual model of TPB, there are relationships and independent variables that
can be studied. This study is aimed at focusing on mental attitude and the perception of one's
own behavioral control (PBC). The impact of subjective norms was excluded from this study
because the sample group had similar cultures and considered them the same for all.
Furthermore, this term can be studied in the future even within the same cultural group. 

Fig 1-TPB Conceptual Model

Source: (Bosnjak, Ajzen and Schmidt, 2020)

4.1 Mental Budgeting Attitude

H1. Mental Budgeting Attitude has a positive impact on the conduct of financial planning
intentions.

4.2 Past behavior of Mental Budgeting

H2: Past behaviors of mental budgeting have a positive impact on the conduct of financial
planning intentions.

4.3 Financial incentives

H3: Financial incentives have a positive impact on the conduct of financial planning intentions.
H4: Financial incentives have a positive impact on the conduct of financial planning.
4.4 Model and Relations

Fig 2-Model dimensions

5. VARIABLES
Variables in this study are Mental Budgeting Attitude (MBA), Past Behavior, and Financial
Incentives as independent variables and financial Planning intention and Financial Planning as
depended on variables.

6. METHOD AND DESIGN

6.1 Research Philosophy

Mackey and Gass (2021) argue that positivist philosophy is all about facts and observations, so
the researcher decided to use it for collecting data in this research.
6.2 Research Approach
The study utilizes questionnaire tools and quantitative data to measure the variables.
6.3 Research Strategy
According to Goddard and Melville (2004) the research uses a deductive methodology and
focuses on the analysis of current theories. Statistical analysis makes it easier to understand the
data objectively, which adds to the original study scientific knowledge.
6.4 Methods of data collection, Measurement instruments and Operationalization
A standard questionnaire based on the Saxion University of Applied Sciences form will be
utilized to collect information for this study. The statistical sample will be given copies of this
questionnaire. In the event of any issues, Google Forms will be used as an alternative. Also, In
the questionnaire, measurement items will be checked according to scientific reference sources.
6.5 Subjects or Participants
The study population will be students of Iranian, which studying in Europe.
6.6 Methods of Data Analysis
A survey was conducted as part of the study plan to evaluate the theoretical hypotheses, and a
questionnaire would be utilized to gather information. In terms of how it will be used and how it
will be analyzed, structural equation modeling (SEM) will be used.
SEM (Structural Equation Modeling) is typically used to visualize and validate several statistical
relationships independently (Dash and Paul 2021). According to Hair Jr. et al. (2013), partial
least squares (PLS) and covariance-based (CB) SEM are two alternative statistical methods for
estimating structural models.
The conceptual difference between PLS-SEM and CB-SEM is clear. CB-SEM is the best
approach to use if the goal of the study is to test and confirm theories. In comparison, PLS-SEM
is the suitable approach when the goal of the research is theory elaboration and prediction (Dash
and Paul 2021).
Moreover, when CB-SEM was performed with a limited sample size, the model fit and analytical
power could have been insufficient. PLS-SEM may be carried out with smaller sample quantities
and more advanced models than CB-SEM (F. Hair Jr et al., 2014). The study complied with all
requirements for applying PLS-SEM.
7. DISCUSSION OF LIMITATION
One of the limitations of this research is the non-cooperation of the participants in completing
the questionnaire. Because they don’t put much attention to this survey, and also, access to
students is another difficulty. To overcome this issue, the researcher will use their own networks.

8. SIGNIFICANCE AND CONCLUSION

Our objective is to look at the financial difficulties faced by Iranian students studying in Europe
and to pinpoint the elements that motivate them to make financial plans. It is critical to
comprehend how mental budgeting and the TPB may be implemented to encourage improved
financial decision-making among Iranian students.
It's also critical to look at the variables that encourage Iranian students to study in Europe given
the rising trend of international students looking for employment opportunities and higher
education overseas. We could discover that the financial support they get and the society in their
home country have a big impact on this choice-making process.
In light of this context, we have established a hypothesis and an approach to gathering
information on the variables influencing Iranian students in Europe to undertake financial
planning. We intend to help in the creation of successful methods and programs that promote
their financial well-being by obtaining an understanding of their financial behaviors and
decision-making processes.