RELATIONSHIP BETWEEN PARENTS' EDUCATION, CHILDHOOD CONSUMER EXPERIENCE AND THE FINANCIAL LITERACY OF YOUNG ADULT

• Main Author: Anindya Putri - Nim: 19015208 , Farissa
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/27185
• Institution: Institut Teknologi Bandung

<p align="justify">The importance of financial literacy increased as the economic world becomes more complex. Indonesia had targeted to have 75% of financial inclusion by 2019, and it needs to be supported by financial knowledge so that the negative experience could be eliminated. Many supportive programs had been made in order to reach this goal. Yet, out of 100 in 2016, only 67 people use financial product and service while only 29 understand how it actually works. Financial literacy itself can be categorized by many factors including age, gender, family background and even nationality. It is also found that childhood consumer experience could influence the level of financial literacy. Financial education is proven to be able to cope the financial literacy, and the most important stage of financial education is childhood where the young people could obtain skills and basic in order to build the awareness and ability to cope with negative circumstances in the real financial world. The research will use multi linear regression to find the correlation between variables. Childhood consumer experience and parents' education will act as the independent variable that expected to influence the dependent variable which is the level of financial literacy. <br /> <br /> <br /> <br /> Based on the questionnaires distributed to 306 respondents around DKI Jakarta and West Java, it is found that most of the respondent at the age between 18 to 25 years old has a low level of financial literacy (score under 60). This study found that parents' education—neither father's nor mother's level of education—do not significantly influence financial literacy index of young adults. Childhood consumer experience is proven as one of the factors that influence the financial literacy of young adult. Yet, the ability to describe variance only for about 8%. <br /> <br /> <br /> <br /> From the findings, it is important for parents to teach their children more about the financial aspect. Continuous education, as well as the discussion, is also needed to support the financial literacy of young adult. Further research needs to be done to find either similar result also applied to Indonesian young adult as a whole. Additional information is needed as well to provide a better description of variance that could not be explained merely by childhood consumer experience. Furthermore, supplementary evidence for childhood consumer experience is essential to provide verification of self-reported data of respondents’ answer. <p align="justify"> <br /> <br />