The Influence of Financial Literacy on Interest in Investing for the Academic Community of Akademi Keuangan &amp; Bisnis Indonesia Internasional (AKBII), Bandung, Indonesia

Hamka Hamka,Ruly Budiono,Muhamad Jupri

doi:10.46336/ijbesd.v1i1.13

The Influence of Financial Literacy on Interest in Investing for the Academic Community of Akademi Keuangan & Bisnis Indonesia Internasional (AKBII), Bandung, Indonesia

Hamka Hamka, Ruly Budiono + Show 1 more

Open Access

https://doi.org/10.46336/ijbesd.v1i1.13

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Abstract

This paper aims to analyze the effect of financial literacy on investment interests among academicians. The study was conducted on all four aspects of financial literacy, namely general knowledge of personal finance, savings and loans, insurance, and investment partially and simultaneously on investment decisions from lecturers, employees, and students at the Indonesian International Finance and Business Academy in Bandung. The subjects in this study were lecturers, employees, and active students majoring in management and accounting at the Indonesian International Finance and Business Academy in Bandung with a total number of 240 questionnaire respondents. The results of the analysis show that financial literacy has a strong influence on investment interests for the academics of the Bandung International Finance and Business Academy.

Highlights

Financial literacy is a set of skills and knowledge that enables individuals to make effective decisions about their investments to improve their finances (Mitchell & Lusard, 2015)
The multiple regression coefficient value of the General Knowledge Personal Finance variable (X1) is 0.0479, which means that for every increase in general personal finance knowledge by 1%, the investment decision will increase by 0.0479. c
The multiple regression coefficient value of the Savings and Loans variable (X2) is 0.2102, which means that for every 1% increase in knowledge about deposits and loans, the investment decision will increase by 0.2102. d

Summary

Introduction

Financial literacy is a set of skills and knowledge that enables individuals to make effective decisions about their investments to improve their finances (Mitchell & Lusard, 2015). According to ASIC (2011) defines financial literacy as the ability to understand financial conditions and financial concepts and to transform that knowledge appropriately into behavior. Poterba et al (2007) define financial literacy as the ability to use knowledge and expertise to manage financial resources to achieve prosperity. An important goal of the financial literacy program is to educate the Indonesian public so that they can manage their finances intelligently so that the low level of knowledge about the financial industry According to Potrich et al (2015) states that by definition literacy is defined as the ability to understand, so financial literacy is the ability to manage the funds owned to develop and live more prosperously in the future.

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