The Mediating Role of Attitude Toward Money on Students’ Financial Literacy and Financial Behavior

Abstract

This research aims at discovering the direct influence of financial literacy on financial behavior; finding out the indirect influence of financial literacy on financial behavior through attitude toward money; and figuring out the direct influence of attitude toward money on financial behavior. This research was conducted at Economics Faculty of State University of Semarang or UNNES with its sample being students who had taken budgeting and financial management courses. The sample was taken using proportionate random sampling and 230 respondents were obtained. The data were collected using questionnaire and they were then analyzed using descriptive analysis and path analysis. Based on the first research result, it was found that financial literacy had direct influence on financial behavior. High financial literacy determined a good financial behavior in the future. Secondly, attitude toward money successfully mediated the influence of financial literacy on students' financial behavior. Thirdly, attitude toward money has a direct influence on financial behavior. In general, students have good financial literacy, attitude towards money, and financial behavior. This allowed them to have a clear priority for their future..

The Interplay Between Financial Literacy, Financial Risk Tolerance, and Financial Behaviour: The Moderator Effect of Emotional Intelligence

“…The study demonstrated that H1, which states that “financial literacy” has a significant positive influence on financial risk tolerance, is supported. The results of this study advance existing research on financial literacy, 5 , 66 , 67 by projecting that financial literacy stimulates financial risk tolerance of investors, allowing them to make more robust and sound financial decisions. The results of this analysis are in harmony with previous studies.…”

“…Furthermore, our third hypotheses state that (a) financial literacy has a significant positive relationship with financial behavior, and (b) financial risk tolerance mediates the relationship between financial literacy and financial behaviour. By investigating financial risk tolerance as the mediating mechanism, our study attempts to bridge the omission in the direct link between financial literacy and financial behavior, 66 , 67 which turn out to be our unique contribution in this study. We come back to its theoretical implications in the subsequent section.…”

“…For instance, prior research has investigated the mediating role of family financial socialisation, 66 financial perceptions (Dewi et al, 2020), 70 and attitude toward money in the relationship between financial literacy and financial behaviour. 67 …”

Investigation of Financial Literacy and Money Attitudes Among First-Year Undergraduate Accounting Students: A Rational Emotive Behavior Therapy-Based Coaching Intervention

“…As soon as they are admitted to a university, most students become responsible for their own finances, but because of a lack of parental supervision, they are more inclined to spend than to manage their money (Susilowati et al., 2020). The purchase of clothes, shoes, and other fashion accessories appears to be a common form of consumerism among these students (Susilowati et al., 2020). As a result, the ability to face financial challenges and make sensible financial decisions is an important skill for university students to learn.…”

“…There are reports showing that a growing number of students have continued to struggle with huge debts because they lack a working understanding of financial literacy and lack the tools required to make the best financial decisions (e.g., Draper, 2019; Fox, 2021). The university student population is currently a major market for financial products and services; in spite of this, students’ poor financial literacy continues to prevent them from fully utilizing these products and services (Susilowati et al., 2020). Inadequate financial literacy impacts a person’s ability to save for long-term goals and their day-to-day attitudes toward money (Zucchi, 2022).…”