Abstract
The lifestyle of Indonesian people who are very consumptive makes it difficult for people to invest. This can be shown in the number of capital market investors in Indonesia which is only 0.61% of the total population. The low level of financial literacy in Indonesia is one factor. Many people do not understand finance so they cannot manage finances properly. In this study, we look for 130 respondents who are college students to find out how financial socialization and financial experience influence on investment intention through financial literacy. The theory used in this research is theory of planned behavior and social learning theory. In this study, financial literacy can only mediate the financial experience of investment intention. The results of this study are in accordance with the theory of planned behavior in which one of the elements is perceived behavioral control with self-control factors originating from within, namely experience so that the financial experience is expected to generate interest in investing.
Highlights
We look for 130 respondents who are college students to find out how financial socialization and financial experience influence on investment intention through financial literacy
One of the main factors influencing investment interest is financial literacy supported by OJK survey evidence (2018) which shows the results of the financial literacy level of Indonesian people around 21.84% for 2016 and OJK targets the financial literacy rate of Indonesian people to reach 35% in 2019 This will certainly have a good impact on the development of financial products in Indonesia, including investment
The results of this study indicate that there is a positive relationship between financial socialization of financial behavior through financial literacy, as well as a positive relationship between financial experience and financial behavior through financial literacy
Summary
Every human being would want to meet the needs and desires that are very diverse and endless, especially people who live in Jakarta. The relationship between financial experience and financial behavior through financial literacy according to Ameliawati & Setiyani's research (2018), shows positive results, which means that the more financial experience a person has, the better the financial behavior will affect. In this case, a person's experience becomes a very important factor influencing financial management behavior. This study is to test the effect of financial socialization and financial experience on investment intention through financial literacy on college students. This study wants to test the effectiveness of financial literacy as a mediating variable of the two determinants of investment intention to target student respondents
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