The impact of financial management techniques on staff retention in Kerala's self-financing arts and science institutions is examined in this study. It investigates the effects of budgeting, wage administration, and financial incentives on staff satisfaction and continuity, given that excessive attrition poses a significant threat to institutional stability and educational quality. Data was gathered from 150 teaching and non-teaching employees at 15 self-financing colleges using a quantitative approach. The association between financial variables and staff retention was investigated using SPSS- based statistical tools, such as regression analysis and correlation. The findings show a strong positive relationship between worker retention and efficient financial management, especially prompt salary disbursement and performance-linked incentives. The study concludes that maintaining high-quality education in the self-financing sector and lowering attrition require careful financial planning and open resource distribution. College administrators are given helpful advice on how to improve financial governance and create a more stable, driven workforce.