Investment Literation Improvement for Preparation of Investments for Young Investors

Linzzy Pratami Putri,Irma Christiana,Isna Ardila,Delyana Rahmawany Pulungan

doi:10.32535/ijafap.v2i3.587

Abstract

This study aims to determine the financial literacy and investment of students and their influence on the ability of students to manage finances and the ability of students to manage assets owned to be invested. The data analysis method used in this research is the Structural Equation Model or SEM method. To see the factors that influence the ability to manage finances and the ability to manage assets, Partial Least Square (PLS) analysis is performed. This analysis is used by looking at the number of samples that are a bit of an obstacle if you want to do an analysis using factor analysis or Structural Equation Model (SEM). Thus, analysis using PLS is appropriate. The results of this study are of 5 (five) literacy variables, namely capital market literacy, type of investment instrument literacy, profit level literacy, investment literacy, and financial literacy on the ability to manage finances, only investment literacy has no significant effect, more influence significant ability to manage finances. Then from (5) five literacy variables that do not have a significant influence on the ability of students to manage assets are capital market literacy and investment literacy.

Highlights

In the current digital era all aspects of life are supported by technology and communication that are automated and facilitate all matters of community life. Wang et al (2011) stated in his research that the development of communication and information technology especially the role of social media has an impact on social life and the lifestyle of the people, especially the younger generation, namely the current millennial generation
In September 2017 domestic ownership increased to 47.77% and the number of Single Investor ID (SID) in September 2017 was 600,489, which increased by 64,495 investors from the previous year
The conclusions that can be drawn from this study are as follows: 1. There is a significant influence on capital market literacy on financial capability

Summary

Introduction

In the current digital era all aspects of life are supported by technology and communication that are automated and facilitate all matters of community life. Wang et al (2011) stated in his research that the development of communication and information technology especially the role of social media has an impact on social life and the lifestyle of the people, especially the younger generation, namely the current millennial generation. Wang et al (2011) stated in his research that the development of communication and information technology especially the role of social media has an impact on social life and the lifestyle of the people, especially the younger generation, namely the current millennial generation. The development of increasingly sophisticated technology makes people's behavior very consumptive and forgets to invest in future needs. As stated by the President of the Republic of Indonesia, Jokowi, quoted from www.liputan6.com, stated that "Why is Wait and See still for Investment?" Previously President Jokowi had stated that investment was the key to promoting national economic growth. According to the records of the Indonesia Stock Exchange (IDX) presented by the BEI President Director quoted from www.kompas.com stating that domestic ownership in the Indonesian stock market has increased quite rapidly. In September 2017 domestic ownership increased to 47.77% and the number of Single Investor ID (SID) in September 2017 was 600,489, which increased by 64,495 investors from the previous year

Objectives

Methods

Discussion

Conclusion