Understanding Financial Knowledge, Financial Attitude, and Financial Behavior of College Students in Indonesia

Individuals have goals to be achieved throughout their life and require an understanding of financial management to achieve their financial goals. Financial literacy research has increased nowadays, but the results of previous researches have shown an inadequate level of personal financial knowledge among students. This research is conducted with the purpose of illustrating the description of financial knowledge, financial attitude, and financial behavior of college student in Bandung, West Java, Indonesia. The research makes use of primary data obtained from the distribution of questionnaires on associated variables. This research also analyzes the effect of financial knowledge on financial attitude and its impact on financial behavior. Structural Equation Modeling is used in order to determine the causal relationship between related variables. The result of this research shows that descriptively the college students have financial knowledge understanding. They have an agreement with respect to power-prestige, retention planning, anxiety, and achievement-esteem, and also making plans how to reach the financial goals. The results also indicate the effect of financial knowledge on financial attitude and its impact on financial behavior.