Irwan Irawadi Barus, Johnny Chandra, Heny Fitriani, Avininda Dewi Nindiasari, Eko Sudarmanto

The Effect of Financial Literacy, Financial Attitudes, and Financial Planning on Student Financial Behavior in West Java

Introduction

The effect of financial literacy, financial attitudes, and financial planning on student financial behavior in west java. Explore how financial literacy, attitudes, and planning shape student financial behavior in West Java. This SEM-PLS study reveals attitudes have the strongest impact, guiding effective financial education.

Abstract

This study examines the impact of financial literacy, financial attitudes, and financial planning on the financial behavior of students in West Java. Using a quantitative approach, data were collected from 170 student respondents through questionnaires with a 5-point Likert scale. The data were analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS 3). The results show that financial attitudes, financial literacy, and financial planning have positive and significant effects on financial behavior. Among the three variables, financial attitudes have the strongest influence, followed by financial literacy and financial planning. The model explains 81.5% of the variance in financial behavior, indicating strong predictive power. These findings highlight the importance of fostering positive financial attitudes, enhancing financial knowledge, and encouraging structured financial planning to promote responsible financial behavior among students. The study contributes to the growing body of literature in behavioral finance and provides practical insights for educators and policymakers in designing effective financial education programs.

Review

This study by [Author(s) - *if available, otherwise refer to "The authors" or "This paper*"] investigates the critical drivers of student financial behavior in West Java, focusing on the interplay of financial literacy, financial attitudes, and financial planning. The research employs a quantitative approach, analyzing data from 170 student respondents using Structural Equation Modeling–Partial Least Squares (SEM-PLS). The findings reveal a significant and positive influence of all three variables—financial attitudes, financial literacy, and financial planning—on financial behavior, with financial attitudes emerging as the strongest predictor. This contributes meaningfully to the understanding of behavioral finance, particularly within a student demographic, and offers valuable insights for designing targeted financial education interventions. Methodologically, the study presents a robust framework, utilizing SEM-PLS 3, which is well-suited for analyzing complex relationships between latent variables. The sample size of 170 students, while specific to West Java, provides a sufficient basis for the statistical analysis performed. A notable strength is the model's high explanatory power, accounting for 81.5% of the variance in financial behavior, which underscores the identified factors as strong predictors. The clear differentiation in the strength of influence—financial attitudes leading, followed by literacy and planning—is a particularly salient finding that enriches the extant literature and provides a nuanced understanding of these relationships. While the study provides compelling evidence for the importance of fostering positive financial attitudes, enhancing knowledge, and encouraging structured planning, certain aspects might warrant further consideration in future research. The cross-sectional nature of the data, implied by the abstract, may limit the ability to infer causality or observe changes over time. Additionally, the reliance on self-reported questionnaire data could introduce response bias. Nonetheless, the practical implications for educators and policymakers in developing effective financial education programs are clear and well-articulated. This research serves as a strong foundation, suggesting avenues for future work, perhaps through longitudinal studies or comparative analyses across different regions or student populations, to further generalize and deepen these insights into responsible financial behavior.

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