Sociodemographic Factors on Financial Literacy of University Students in Pekanbaru, Indonesia

  • Mimelientesa Irman Institut Bisnis dan Teknologi Pelita Indonesia
  • Suwitho Sekolah Tinggi Ilmu Ekonomi Indonesia
  • Fadrul Institut Bisnis dan Teknologi Pelita Indonesia
Keywords: Sociodemographic Factors, Financial Literacy

Abstract

This study aimed to investigate the effect of socio-demographic factors, including gender, work experience, age, and GPA (Grade Point Average) on the students’ level of financial literacy within some universities in Pekanbaru. This study conducted in two state universities (Riau University and UIN Sultan Syarif Kasim) as well as in four private universities (Caltex Polytechnic University, Muhamadiyah University of Riau, Lancang Kuning University, and STIE Pelita Indonesia). The universities were the object of this study since they had collaborated with the Riau Representative Indonesia Stock Exchange in establishing a financial education in the purpose to develop students’ knowledge on investment products and personal financial management. The population in this research was 78.540 active students and based on Slovin formula this study used 348 students as sample. Sampling technique used was simple random sampling. In addition, this study applied descriptive analysis and Binary Logistic Regression test as the data analysis technique. As the results, this research indicated that two factors, i.e. work experience and GPA significantly affected the students’ level of financial literacy. In contrast, other factors, i.e. gender and age did not affect the level of financial literacy of university students in Pekanbaru City.

 

References

Agarwal, S., Driscoll, J., Gabaix, X.., & Laibson, D. (2009). The age of reason:financial decisions over the lifecycle with implications for regulation. Brookings Papers on Economic Activity 2: 51-117.

Ansong, A., & Gyensare, M.A. (2012). Determinants of University Working-Students’ Financial Literacy at the University of Cape Coast, Ghana. International Journal of Business and Management (7) 9: 126-133.

Ariani, N. A., & Susanti. (2015). Pengaruh Faktor Demografi terhadap Financial Literacy Mahasiswa Fakultas Ekonomi Universitas Negeri Angkatan 2012. Jurnal Pendidikan Akuntansi (JPAK). Vol 3, No 2.

Atkinson, A., & Messy, F. 2012. Measuring financial literacy: results of the OECD / International Network on Financial Education (INFE) Pilot Study [Working Paper n. 15]. OECD Publishing. Retrieved on April 5, 2013, from http://dx.doi. org/10.1787/5k9csfs90fr4 en.

Calamato, M. P. 2010. Learning financial literacy in the family. Unpublished master’s thesis. The Faculty of the Department of Sociology, San José State University.

Calvet, K, Laurent E., John, Y.C & Paolo S. 2009. Measuring the Financial Sophistication Of Households. American Economic Review, 99(2), 393-398.

Chen, H. & Volpe, R. (1998). An Analysis of Personal Financial Literacy Among College Students, Financial Services Review, Vol. 7 No.2, pp. 107-128

Delavande, A., Rohwedder, S., & Willis, R. J. 2008. Preparation for retirement, financial literacy and cognitive resources. [Working Paper n. 2008-190]. Michigan Retirement Research Center. Retrieved on April 25, 2013, from http://www.mrrc.isr.umich.edu/ publications/papers/pdf/wp190.pdf.

Ghozali, I. (2011). Aplikasi Analisis Multivariate Dengan Program IBM. SPSS 19 (edisi kelima.) Semarang: Universitas Diponegoro.

Hogan, E. A., Bryant, S.K., & Overymyer-Day, L.E.. (2012). Relationship Between College Students’ Credit Card Debt Undesirable Academic Behaviors and Cognitions, and Academic Performance. College Student Journal 47(1): 102-112.

Klapper, L., Lusardi, A., & Panos, G. A. (2013). Financial literacy and its consequences: Evidence from Russia during the financial crisis. Journal of Banking & Finance, 37(10): 3904-3923.

Lusardi, A., & Mitchell, O. S. (2007). Baby Boomer Retirement Security: The Roles of Planning, Financial Literacy, and Housing Wealth. Journal of Monetary Economics 54: 205- 224.

_____ .(2011). Financial literacy and retirement planning in the United States. Journal of Pension Economics and Finance, 10(4): 509-525.

Lusardi, A., Mitchell, O.S., & Curto, V. (2010). Financial Literacy Among The Young. Journal Of Consumer Affairs Volume 44(2): 3528-380.

Margaretha, F., & Pambudhi, A.R. (2015). Tingkat Literasi Keuangan pada Mahasiswa S-1 Fakultas Ekonomi. JMK, 17(1): 76-85.

Monticone, C. (2010). How much does wealth matter in the acquisition of financial literacy? The Journal of Consumer Affairs 44(2): 403- 422.

Nababan, D., & Sadalia, I. (2012). Analisis Personal Financial Literacy dan Financial Behaviour Mahasiswa Strata I Fakultas Ekonomi Universitas Sumatera Utara.Medan:Fakultas Ekonomi dan Bisnis Universitas Sumatera Utara.

Nidar, S. R., & Bestari, S. (2012). Personal Financial Literacy Among University Students (Case Study at Padjadjaran University Students, Bandung, Indonesia). World Journal of Social Sciences Vol. 2. No. 4: 162 – 171.

O’Neill, B., & Xiao, J. (2012). Financial behaviors before and after the financial crisis: evidence from an online survey. Journal of Financial Counseling and Planning, 23(1): 33-46.

Organisation for Economic Co-Operation and Development (OECD). (2013). Financial literacy and inclusion: Results of OECD/INFE survey across countries and by gender. OECD Centre, Paris, France.

Potrich, V., & Kirch. (2015). Determinantes da Alfabetização Financeira: Análise da Influência de Variáveis Socioeconômicas e Demográficas. Revista Contabilidade & Finanças 26(69): 362–377.

Robb, C., & Deanna, L.S. (2009). Effect of Personal Financial Knowledge on College Student’s Credit Card Behavior. Journal of Financial Counseling and Planning, Volume 20, Issue 1: 25-43.

Sabri, M.F., & Gudmunson, C.C. (2012). Financial Well-being of Malaysian College Student. Asian Education and Development Studies (1) 2: 153-170.

Scheresberg, C. B. (2013). Financial literacy and financial behavior among young adults: evidence and implications. Numeracy 6(2): 1-21.

Shalahuddinta, A.., & Susanti. (2012). Pengaruh Pendidikan Keuangan di Keluarga, Pengalaman Bekerja dan Pembelajaran di Perguruan Tinggi terhadap Literasi Keuangan. Universitas Negeri Surabaya.

Shim, S., Barber, B.L., Card, N.A., Xiao, J.J., & Serido, J. (2009). Financial Socialization of First-year Collage Studentd: The Role of Parents, Work, and Education. Journal of Youth and Adolescence, 39 (12): 1457-1470.

Shockey, S.S. (2002). Low-wealth adults financial literacy. Money management behavior and associates factors, including critical thinking. Unpublished master’s thesis. University of Utah, United States.

Van Rooij, M., Lusardi, A., Alessie, R. (2011). Financial Literacy and Retirement Planning in the Netherlands. Elsevier 32: 593-608.

Wagland, S. P., & Taylor, S. (2009). When it comes to financial literacy, is gender really an issue?. Australasian Accounting Business and Finance Journal, 3(1): 13-25.

Published
2020-12-20
How to Cite
Irman, M., Suwitho, & Fadrul. (2020). Sociodemographic Factors on Financial Literacy of University Students in Pekanbaru, Indonesia. International Journal of Economics Development Research (IJEDR), 1(3), 225-242. https://doi.org/10.37385/ijedr.v1i3.120
Abstract viewed = 71 times
PDF downloaded = 53 times