Higher education given in conventional degree colleges such as Arts, Science and Commerce is the source of churning the cream of intellects from the society and supplying the same to management, planning, design, teaching and research. Scientific and technological advancements and economic growth of a country is dependent on higher education. Higher education involves financial activities though their chore activity is catering education to their students. Hence, it is certain that every educational institution requires an effective financial management scheme as a tool to operate and control its financial operations. The Arts, Science and Commerce colleges in Navi Mumbai affiliated to University of Mumbai are selected in this paper for the present study. On the basis of the collected information, assumptions are drawn regarding Financial Management in the sample colleges. Navi Mumbai is another and modern version of Mumbai which is turning into a major educational hub for the younger generation residing in the said arena. Also, it is attracting major flow of people towards it as it is a well-planned area. The present paper, therefore, attempts to throw light upon the application of Financial Management in the conventional colleges of Navi Mumbai. Also, an attempt is made to evaluate the information collected through a questionnaire, interviews and interactions with the stake-holders of these colleges regarding the importance of Financial Management in preparation of financial plan, its approval, its communication, monitoring, recording financial transactions, comparison with planned one and ascertaining variation if any All colleges prepare financial plan either in the nature of flexible or fixed financial plan. Most of the Colleges apply mechanism of Financial Management. Further, an attempt is also made to make certain suggestions and recommendations in order to conquer the discrepancy in preparation of financial plan and application of Financial Management efficiently by these colleges.