THE INTERRELATIONSHIP BETWEEN FINANCIAL KNOWLEDGE, FINANCIAL BEHAVIOR, FINANCIAL ATTITUDE, AND DEMOGRAPHIC VARIABLES OF UNDERGRADUATE STUDENTS IN PADANG, WEST SUMATERA

• Main Author: Nuza Qisthi, Shakila
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/66145
• Institution: Institut Teknologi Bandung

It is critical for people to have adequate financial literacy in order to improve their standard of living, free from debt bondage, and to keep expenses on track. According to the Indonesian Financial Authority’s survey in 2019, the financial literacy index of Indonesian people was 38.03 percent. This research is conducted to study the financial literacy of undergraduate students and examines the relationship between the students' demographic characteristics and their level of financial literacy, and the interrelationship between the three financial literacy aspects. All the data were collected by distributing questionnaires to undergraduate students in Padang covering age, gender, university, college level/semester taken, and monthly income. Out of the sample, a total of 414 respondents completed the questionnaire. The findings show that on average 47.57 percent of the respondents answered the questions correctly, which is relatively low compared to the financial literacy index by Chen and Volpe (1998) which was also quoted by Margaretha and Pambudhi (2015). Using Structural Equation Modeling (SEM), the research also found that age, gender, university, college level, and monthly income does not have a significant effect on financial knowledge. Not much different, financial knowledge does not significantly affect financial attitude. In contrast, financial attitude and financial knowledge has a significant impact on financial behavior. While, financial attitude cannot mediate the relationship between financial knowledge and financial behavior.