THE POWER OF A FINANCIAL LITERACY TOWARDS RISK TOLERANCE AND INVESTING DECISION ON SCHOOL OF ECONOMICS AND BUSINESS STUDENT

• Main Author: Olga, Michelle
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/64497
• Institution: Institut Teknologi Bandung

Financial literacy is a person's financial knowledge to manage their finances well. This is an important thing for everyone, not only for individuals, but also the government and related institutions that are actively conducting socialization about the importance of investing. This is important because based on the multiple linear regression tests in this study, there is a relationship between financial literacy, gender, and risk tolerance among Undergraduate Economics and Business, so with an increase in someone's financial literacy, and their risk tolerance will also increase. Another finding is men have higher financial risk tolerance than women. Then, based on the logistic regression test, risk tolerance also has an influence on their decision to invest, with a high risk tolerance; their decision to invest is also high. This test is carried out through the distribution of online questionnaires to 349 Undergraduate Economics and Business Students who have obtained or are currently undergoing financial courses.