The Influence Of Financial Attitude, Financial Knowledge, Parental Education And Parental Income On Financial Management Behavior In Students Of The University Of North Sumatra

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The Influence of Financial Attitude, Financial Knowledge, Parental Education, and Parental Income on Financial Management Behavior in Students of the University of North Sumatra

Introduction

Financial management behavior is a crucial aspect of an individual's life, especially for students who are just starting to navigate the world of finance. The University of North Sumatra, with its large student population, is an ideal setting to study the factors that influence financial management behavior among students. This study aims to explore the influence of financial attitudes, financial knowledge, parental education, and parental income on financial management behavior among students of the University of North Sumatra.

Methodology

This study used a purposive sampling technique to select 396 students from a total population of 12,558 who met the criteria for S1 students in the 2013-2014 class. Data was collected through questionnaires and interviews to get relevant information. The study aimed to identify the factors that influence financial management behavior among students and to explore the relationships between these factors.

Analysis of the Effect of These Factors

1. Financial Attitude

Financial attitudes refer to individual perspectives and attitudes towards money and their management. Students with a positive attitude towards finance tend to have better financial management behavior. For example, they are more likely to make a budget and avoid unnecessary debt. This attitude is very important in shaping a healthy mindset related to financial. A positive financial attitude can lead to better financial decisions, such as saving for the future, investing in education, and avoiding debt. On the other hand, a negative financial attitude can lead to poor financial decisions, such as overspending, accumulating debt, and neglecting financial planning.

2. Financial Knowledge

Financial knowledge includes an understanding of basic financial concepts, such as budgeting, investment, and debt management. Research shows that students who have better knowledge about finance tend to be more skilled in managing their finances. The formal and informal education they receive play an important role in increasing this knowledge. Financial knowledge is essential for making informed financial decisions, such as choosing the right investment options, managing debt, and creating a budget. Students with better financial knowledge are more likely to achieve their financial goals and avoid financial pitfalls.

3. Parental Education

The level of education of parents affects the formation of children's financial attitudes and knowledge. Parents who have higher education are usually more aware of the importance of financial planning and can transmit this knowledge to their children. This shows how important the role of parents in guiding children in managing finances well. Parents with higher education can provide their children with better financial guidance, such as teaching them how to create a budget, invest in education, and manage debt. This can lead to better financial management behavior among students.

4. Parents' Income

Parental income also has a significant impact on student financial management behavior. Students who come from families with higher income may be easier to get access to good financial education and practical experience. However, this student must also learn to manage their money wisely so as not to get caught up in excessive consumption patterns. Parents with higher income can provide their children with more financial resources, such as access to better education, healthcare, and financial services. However, this can also lead to a sense of entitlement and a lack of financial responsibility among students.

Research Implications

The implications of this study indicate that students need to develop good financial management skills from an early age. They must learn to make effective financial planning to practice more responsible financial behavior. In addition, awareness of the importance of the ability to act and make the right financial decisions must be instilled in students, so that they can better manage their finances in the future. This study suggests that financial education should be integrated into the curriculum of schools and universities to equip students with the necessary knowledge and skills to manage their finances effectively.

Conclusion

This study provides insight into the factors that influence financial management behavior among students of the University of North Sumatra. The results show that financial attitudes, financial knowledge, parental education, and parental income all have a significant impact on student financial management behavior. The study suggests that financial education should be integrated into the curriculum of schools and universities to equip students with the necessary knowledge and skills to manage their finances effectively. By developing good financial management skills from an early age, students can achieve their financial goals and avoid financial pitfalls.

Recommendations

Based on the findings of this study, the following recommendations are made:

  1. Integrate financial education into the curriculum: Financial education should be integrated into the curriculum of schools and universities to equip students with the necessary knowledge and skills to manage their finances effectively.
  2. Provide financial guidance to students: Parents and educators should provide financial guidance to students to help them develop good financial management skills.
  3. Encourage financial literacy: Financial literacy should be encouraged among students to help them make informed financial decisions.
  4. Provide access to financial resources: Parents and educators should provide access to financial resources, such as financial services and education, to help students manage their finances effectively.

By implementing these recommendations, students can develop good financial management skills and achieve their financial goals.
Frequently Asked Questions (FAQs) about the Influence of Financial Attitude, Financial Knowledge, Parental Education, and Parental Income on Financial Management Behavior in Students of the University of North Sumatra

Q: What is the main objective of this study?

A: The main objective of this study is to explore the influence of financial attitudes, financial knowledge, parental education, and parental income on financial management behavior among students of the University of North Sumatra.

Q: What is the sample size of this study?

A: The sample size of this study is 396 students who were selected using a purposive sampling technique from a total population of 12,558 S1 students in the 2013-2014 class.

Q: What are the factors that influence financial management behavior among students?

A: The factors that influence financial management behavior among students are financial attitudes, financial knowledge, parental education, and parental income.

Q: How do financial attitudes influence financial management behavior among students?

A: Financial attitudes refer to individual perspectives and attitudes towards money and their management. Students with a positive attitude towards finance tend to have better financial management behavior, such as making a budget and avoiding unnecessary debt.

Q: How does financial knowledge influence financial management behavior among students?

A: Financial knowledge includes an understanding of basic financial concepts, such as budgeting, investment, and debt management. Students who have better knowledge about finance tend to be more skilled in managing their finances.

Q: How does parental education influence financial management behavior among students?

A: The level of education of parents affects the formation of children's financial attitudes and knowledge. Parents who have higher education are usually more aware of the importance of financial planning and can transmit this knowledge to their children.

Q: How does parental income influence financial management behavior among students?

A: Parental income also has a significant impact on student financial management behavior. Students who come from families with higher income may be easier to get access to good financial education and practical experience.

Q: What are the implications of this study?

A: The implications of this study indicate that students need to develop good financial management skills from an early age. They must learn to make effective financial planning to practice more responsible financial behavior.

Q: What are the recommendations of this study?

A: Based on the findings of this study, the following recommendations are made:

  1. Integrate financial education into the curriculum: Financial education should be integrated into the curriculum of schools and universities to equip students with the necessary knowledge and skills to manage their finances effectively.
  2. Provide financial guidance to students: Parents and educators should provide financial guidance to students to help them develop good financial management skills.
  3. Encourage financial literacy: Financial literacy should be encouraged among students to help them make informed financial decisions.
  4. Provide access to financial resources: Parents and educators should provide access to financial resources, such as financial services and education, to help students manage their finances effectively.

Q: What are the limitations of this study?

A: The limitations of this study are:

  1. Sample size: The sample size of this study is relatively small compared to the total population of S1 students in the 2013-2014 class.
  2. Sampling method: The sampling method used in this study is purposive sampling, which may not be representative of the entire population.
  3. Data collection method: The data collection method used in this study is questionnaire and interview, which may not be comprehensive.

Q: What are the future research directions?

A: The future research directions are:

  1. Replication study: A replication study should be conducted to verify the findings of this study.
  2. Longitudinal study: A longitudinal study should be conducted to examine the changes in financial management behavior among students over time.
  3. Comparative study: A comparative study should be conducted to compare the financial management behavior among students from different backgrounds and cultures.