Abstract
This research aims to analyze the effect of financial literacy and self-control on financial behavior among Bogor High School students. This research was conducted in two public high schools in Bogor, West Java, Indonesia, that were selected based on the level of passing grade of the school (high-grade and low grade). In collecting the data, this study used a self-administered questionnaire. About 113 of senior high school students from science and social majors were selected as the sample. This study found that financial knowledge and financial attitude were on a moderate level. High-grade school students tend to have better financial knowledge and attitude than those from low-grade schools. The results of this study also show that the self-control of students was classified as a low category. Those from low-grade schools were more likely to have better self-control compared to students from the high-grade school. Furthermore, financial behavior, which consists of saving and spending behavior, were categorized as poor. There was a significant difference in financial knowledge, financial attitude, and self-control among both schools. The financial attitude was positively significantly related to financial knowledge and behavior. Self-control was associated positively with financial behavior. Further analysis of multiple linear regression shows a positive and significant effect of financial attitude and self-control towards financial behavior.
Highlights
The world is getting more connected in all aspect that makes changes in global economic trends including in term of finance, and it might affect individual financial security (Policy Research Initiative [PRI], 2005)
Based on data related to financial literacy, self-control, and financial behavior as described above, this study aims to: 1) identify characteristics of samples, characteristics of schools, level of financial literacy, self-control, and financial behavior of Bogor High School students; 2) differentiate the level of financial literacy, self- control, financial behavior of Bogor High School students based on the passing grade of the school; 3) analyze the association between characteristics of samples, characteristics of schools, financial literacy, self-control, and financial behavior of Bogor High School students; 4) analyze the effect of characteristics of samples, characteristics of schools, financial literacy, and self-control towards financial behavior of Bogor High School students
The financial knowledge of students was on a moderate level
Summary
The world is getting more connected in all aspect that makes changes in global economic trends including in term of finance, and it might affect individual financial security (Policy Research Initiative [PRI], 2005). People's ability to manage their finances become more important. Those with good financial management are more likely to be financially secured and more able to face any changes in the future (PRI, 2005). Financial management tends to be associated with financial behavior. Good financial behaviors are demonstrated by various activities, including good financial planning, managing, and controlling (Laily, 2013). Is it important for adults, financial behavior is crucial for adolescents as behavior patterns developed in adolescence will be the basis for financial behavior and well-being later in life (Beverly & Burkhalter, 2005)
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