Abstract
Financial knowledge, financial behaviour, financial self-efficacy, and financial behaviour are needed to make the right financial decisions. This study determines the differences in rural and urban junior high school students’ financial knowledge, financial behaviour, financial self-efficacy, and saving behaviour. This study also finds the influence of financial knowledge, financial self-efficacy, and saving behaviour on students’ financial behaviour. This study used the t-test, independent t-test and multiple linear regression methods to analyse the data obtained in the survey. The respondent of the survey is junior high school students aged 11 to 15 years. Data were obtained from the results of questionnaires filled in online by students. The results showed differences in financial knowledge, financial behaviour, and financial self-efficacy in rural and urban junior high school students. The findings in this study show that the financial behaviour of junior high school students in rural and urban areas shows the same results. Our research shows that demographics, financial knowledge, and financial self-efficacy influence students’ financial behaviour. However, financial behaviour is not influenced by students’ saving behaviour.
Highlights
Financial skills such as financial literacy, financial behavior, financial self-efficacy, and financial behavior remain to be developed by the government, various financial institutions, educational institutions, media, and other entities at national and international levels through financial education
This study aims to determine differences in financial knowledge, financial behavior, financial self-efficacy, and saving behavior based on the area where students live
The results showed significant differences in financial knowledge, financial behavior, and financial self-efficacy in junior high school students with living areas in villages and cities
Summary
Financial skills such as financial literacy, financial behavior, financial self-efficacy, and financial behavior remain to be developed by the government, various financial institutions, educational institutions, media, and other entities at national and international levels through financial education. Multiple countries have launched national financial literacy strategies in the last decade to improve the financial well-being of their citizens. Strategies are implemented to improve financial literacy through financial education programs [1]. Financial education is a program that offers the knowledge needed to help people make better financial decisions [2]. SNLKI (2019) shows a financial literacy index of 38.03%, while for financial inclusion, it is 76.19%, both increased from the previous year [4]. The 2013 SNLKI shows a financial literacy index of 21.84% and financial inclusion of 59.74% [5]. The large gap between financial literacy and financial inclusion shows that many Indonesians still do not have this ability. Financial education can provide someone with knowledge related to finance to influence financial decisions and financial behavior [7]
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