The Interrelationship Between Financial Knowledge, Financial Behavior, and Financial Attitude of Undergraduate Students in Padang, West Sumatra

Abstract

The purpose of this research is to evaluate the relationship between the students' demographic characteristics and their level of financial literacy, as well as the interrelationship between the three financial literacy components. All of the information was gathered by mailing questionnaires to undergraduate students in Padang, which included questions on age, gender, university, college level/semester taken, and monthly income. The questionnaire was completed by 414 people from the sample. The findings indicate that 47.57 percent of respondents correctly answered the questions on average, which is relatively low. The study also discovered that age, gender, university, college level, and monthly income have no effect on financial knowledge when using Structural Equation Modelling (SEM). Similarly, financial knowledge has no influence on financial mindset. Financial attitude and knowledge, on the other hand, have a positive relationship on financial behavior. Financial attitude, on the other hand, cannot moderate the relationship between financial knowledge and financial conduct. The implications of this research is how colleges, government institutions, and/or other NGOs work together to increase the financial literacy of the youth in the City of Padang.