As it is usually observed that university students experienced many challenges in making financial decisions or even they lack skills to plan out their funds. Inculcating the habit of savings and investments or even making planned expenses is essential for stable and peaceful mindset which can affect their focus in studies. Therefore this paper aims to investigate the impact of financial literacy, financial attitude and use of digital financial tools influencing the financial behavior of undergraduate in terms of making effective investment decisions, savings and planned spending. The empirical evidence reveals that majority of the female students have higher spending attitude compared to male students and female student’s financial literacy is comparatively higher than male students. Another findings explains that students with pocket money as a source of income has better financial behavior compared to students with part-time income or students receiving income through gifts. Majorly influencing factor which can have positive effect on financial decision making is use of digital financial tools like budgeting apps and social media. As many students have agreed that use of social media and budgeting apps have helped them to gain more knowledge about money management and thus helped in improving their financial behavior positively. The findings of the study suggest that Institutes/Universities can simulation and learning through application as a teaching pedagogy for financial literacy courses.