




































Australian Finance & Banking Review 

 Vol. 5, No. 1; 2021 

                                                                               ISSN 2576-1196   E-ISSN 2576-120X 

           Published by CRIBFB, USA 

 

15 

THE DETERMINANCE OF THE FINANCIAL BEHAVIOR 

AMONG GRADUATE STUDENTS IN INDONESIA  
 

 

Dr. Nyoto 

Lecturer 

Faculty of Business 

Institut Bisnis Dan Teknologi Pelita Indonesia, Indonesia 

E-mail: nyoto@lecturer.pelitaindonesia.ac.id 

 

Nicholas Renaldo 

Lecturer 

Faculty of Business 

Institut Bisnis Dan Teknologi Pelita Indonesia, Indonesia 

E-mail: nicholasrenaldo@lecturer.pelitaindonesia.ac.id 

 

Dr. Gunasegaran Karuppannan 

Associate Professor 

Faculty of Education and Social Science 

University of Selangor, Shah Alam, Malaysia  

E-mail: drguna@unisel.edu.my 

 

Dr. Abul Bashar Bhuiyan 

Associate Professor 

Faculty of Business and Accountancy  

University of Selangor, Shah Alam, Malaysia 

E-mail: bashariuk@gmail.com 

 

Dr. Mokana Muthu Kumarasamy 

Lecturer 

Faculty of Business and Accountancy  

University of Selangor, Shah Alam, Malaysia 

E-mail: mokana@unisel.edu.my 

 

ABSTRACT 

The lifestyle of adolescents who migrate to work and college will largely determine their future. 

Concerns about economic conditions can cause problems with their behavior. This research has 

aimed to explore the most influential factors on Financial Behavior among graduate students in 

Indonesia. The Primary data collected by distributing questionnaires using a Likert scale. There 

are 239 samples have collected based on the combination of purposive and convenience 

sampling methods. The study used descriptive statistical techniques and path analysis techniques 

for data analysis. Based on path analysis results, study findings indicate that there is a 

significant influence of financial knowledge on financial self-efficacy; financial self-efficacy and 

financial knowledge on financial behavior; financial attitude and financial self-efficacy on 

mailto:nyoto@lecturer.pelitaindonesia.ac.id
mailto:nicholasrenaldo@lecturer.pelitaindonesia.ac.id
mailto:drguna@unisel.edu.my
mailto:bashariuk@gmail.com
mailto:mokana@unisel.edu.my


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financial behavior but there is no significant influence of financial knowledge on financial 

behavior. The study results also showed that adolescent habits are still not good but can be 

improved through education such as character education and achievement of a better motivation 

to deal with economic problems. The study recommended that the good habits can be passed on 

to friends of his age, especially adolescents so they can have a good future. 

 

Keywords: Financial Behavior, Self-Efficacy, Knowledge, Attitude. 

 

JEL Classification Codes: F36, G02, A23. 

 

INTRODUCTION 

The development of advanced technology in 2019 will certainly affect the lifestyle of many 

people. Everything is done through technology such as online shopping, online transactions, 

even to buy food also through smartphone applications. Of course, this will be more familiar 

with adolescents, especially adolescents who migrate to the city. The use of the latest 

technological devices directly affects the cost and lifestyle of a person. The cost of living if done 

properly is still not a problem but the lifestyle of a new adolescent is dominated to gather with 

friends, online shopping, holiday after receiving bonuses, or year-end leave. The use of the latest 

technology certainly costs a lot. The pre-survey results showed that around 34% of Institut 

Bisnisdan Teknologi Pelita Indonesia (IBTPI) students showed bad habits. For those who have 

worked more than 1 year, a regional minimum wage increase of around 8% per year should be a 

good thing but because the adolescent's full prestige style can result in their downfall in financial 

prisons. Adolescents aged 18-25 years can be said as a stage towards maturity. If they fail 

financially in this age range, it will cause a domino effect going forward. 

Important skills for understanding money include controlling expenses, saving, and 

investing. It really depends on how well they follow their financial goals. The matter that a lot of 

people will face, especially younger individuals, is the lack of monetary knowledge that results 

in poor financial management(Susan, 2018). Theory of Planned Behavior (TPB), related to 

rational actions based on the assumption that humans act logically, considering all available 

information, directly and indirectly, calculates the impact of the actions they take. According to 

the theory of rational action, the individual will take action whenever he sees that the action is 

positive and every time the individual believes that someone else wants him to do such an action 

(Arifin, 2017). Research from Herawati et al.,  2018 showed a significant positive effect on 

financial self-efficacy on financial behavior (Herawati, Candiasa, Yadnyana, & Suharsono, 

2018). Research from (Ismail et al., 2017)showed a positive and not significant effect whereas 

Faique et al., 2017 showed significant negative results (Faique et al., 2017). The effect of 

financial attitude on financial behavior can be seen in research from (Susan, 2018)which showed 

significant positive results. These results contradict the study from (Falahati, Sabri, & Paim, 

2012) which gives significant negative results and with positive and insignificant results (Ismail 

et al., 2017). The effect of financial knowledge on financial behavior in research from Arifin, 

2018 showed significant positive results (Arifin, 2018. While Yong, Yew, & Wee, 2018 on the 

same variable gives positive and insignificant results (Yong, Yew, & Wee, 2018). 

Based on the description of phenomena, existing research gaps, and theoretical gaps, it 

will be interesting research to discuss more the financial behavior of IBTPI students in 2019. 

Combined with this research, it can increase their awareness that financial maturity will be very 

beneficial for this generation to face the future. Thus, this research has aimed to explore the most 



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influential factors on the Financial Behavior in among graduate students in Indonesia. It is hoped 

that the results of this study can be beneficial for the development of education both theoretically 

and practically. The theoretical benefit is that this research will be a scientific development in the 

field of personal financial management and human resource management. This research is also 

useful as reference material for academics and also this research can subsequently be a reference 

for future researchers.  

 

LITERATURE REVIEW 

Financial Behavior 

Financial behavior is human behavior related to financial management. Financial behavior is a 

combination of cash flow management, credit management, savings, and investment. Financial 

behavior is related to personal responsibility in financial management. Effective financial 

management such as setting a budget and assessing debt purchases and retirement needs in a 

reasonable time. Financial behavior is the attitude and behavior of someone in managing 

finances. Expenditures and savings behavior are used as benchmarks for research. Financial 

behavior is related to the way people treat, manage, and use available financial resources. 

Financial behavior can be measured in several ways: (1) expenses, (2) payment of bills, (3) 

financial planning, (4) providing money for yourself and family, (5) savings (Arifin, 2018). 

Theory of Planned Behavior (TPB), which is related to rational actions on the assumption 

that humans take logical actions and consider all available information to directly or indirectly 

calculate the impact of their actions. In addition, this theory of planned behavior adds a third 

factor, control of the trust (Arifin, 2017). The theory of Planned Behavior explains that 

individual behavior arises because of intention. Behavioral intentions are determined by three 

factors, namely: (1) Behavioral beliefs, which are individual beliefs about the results to be 

obtained, and evaluation of results, (2) Normative beliefs, are motivations for achieving 

expectations for normative expectations together with others, and (3) Control of belief, namely 

the existence of things that support or hinder the behavior that arises, and how strong the support 

or resistance is (Arifin, 2018). 

According to the theory of rational behavior, every time someone sees that the behavior 

is positive, and every time the individual thinks that someone wants it, he will act. A person's 

intention to do something or not to do something is influenced by two basic factors, namely 

attitudes derived from behavioral beliefs and subjective norms derived from normative beliefs 

(Arifin, 2017). The literature shows that financial behavior and financial management can 

influence the financial situation. Personal financial practices such as cash management, credit 

management, budgeting, financial planning, and general fund management have the greatest 

impact on personal financial satisfaction (Sabri, Paim, Falahati, & Masud, 2013). 

 

Financial or Money Attitude 

Individual attitudes towards money can determine their personality and management style. 

Attitude is a subjective tendency to do something and be expressed which will be demonstrated 

through the evaluation of favorable or unfavorable objects (Susan, 2018). In today's materialist 

environment, money is not limited to the medium of exchange, but also the means to achieve 

happiness and prosperity. Money has four iconic values, namely status, respect, freedom, and 

luxury. Materialistic or obsessed people with money are often more satisfied with their financial 

situation because of their ability to satisfy their material desires. The results showed that the 



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18 

perception of individuals who have welfare is determined by their life aspirations (Sabri & 

Zakaria, 2015). 

Financial attitude plays an important role in determining the success or failure of one's 

financial behavior. Financial attitudes are defined as psychological tendencies and are most 

easily expressed by showing likes or dislikes. Financial attitudes that state the level of 

intelligence that agrees or disagrees can help individuals manage their finances. The higher the 

financial attitude of a person, the higher the awareness to be responsible for financial use, so that 

it will have a positive impact on financial behavior (Arifin, 2018). Financial attitude is defined as 

a person's state of mind, opinion, and judgment about finance. Based on the theory of social 

learning there is a three-way relationship that locks one another, namely behavior, environment, 

and events that affect perceptions and actions. Events in influencing perceptions and actions in 

this study are financial attitudes and financial management behaviors. Financial management 

behavior can be started properly and correctly by applying good and correct financial attitudes 

(Ameliawati & Setiyani, 2018).  

 

Financial Knowledge 

There are two main branches of financial knowledge, namely the ability of respondents to use 

and apply general financial knowledge or special financial knowledge as a synonym for financial 

literacy. Measurement of financial literacy mainly involves four aspects, namely personal 

financial knowledge, general financial literacy, investment, and financial and tax planning. There 

is a scale of knowledge that includes skills and knowledge related to deposits and debits, 

insurance and investment projects, and financial information. Another way to measure financial 

knowledge is through self-assessment of financial knowledge. In addition, financial management 

knowledge is used as an evaluation instrument (Susan, 2018). 

To develop financial behavior, a person must have financial knowledge. Financial 

knowledge is the key to understanding finances and ideas needed that are useful for society. 

Financial knowledge in question is banking and savings, insurance, the use of credit, tax and 

investment. Every individual has financial knowledge depending on how deep the knowledge is 

possessed. Financial knowledge can be measured in several ways, such as (1) interest rates, 

financial costs and credit, (2) credit interest rates and credit data, (3) financial management, (4) 

investment, (5) credit reports (Arifin, 2018).Financial knowledge is the ability to understand, 

analyze, and manage finances to make correct financial decisions to avoid financial problems. To 

have financial knowledge, one must develop financial skills and learn to use financial tools, such 

as preparing a budget, choosing an investment, and choosing an insurance plan. Financial 

knowledge can be obtained from schools, seminars, training, and non-formal education. 

 

Financial Self-Efficacy 

Self-Efficacy can be understood as an individual's belief about his ability to organize and carry 

out a series of actions that are deemed necessary to achieve something desired. In relation to 

financial behavior, self-efficacy can be defined as a belief in a person's ability to change financial 

behavior for the better. Self-Efficacy is a key component in Bandura's social cognitive theory 

that characterizes a person's confidence in his ability to succeed in performing tasks. Individual 

confidence in his own ability can help in determining the expected results because individuals 

have confidence in anticipating all actions to achieve the desired goals. Someone who is 

confident sees difficult tasks as a challenge to be met rather than as a threat that must be avoided. 

He has a stronger interest and deep involvement in an activity carried out, writes challenging 



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goals, and has a strong commitment to achieving the desired goals. Financial independence helps 

to act and change financial behavior for the better (Herawati et al., 2018). 

Financial self-efficacy is defined as one's belief that someone is capable of certain 

behaviors. Self-efficacy is proportional to perceived personal abilities. Self-efficacy affects the 

challenges made, how much effort must be spent, how long to survive in the face of obstacles 

and failures, and whether the failure is motivating or discouraging. Thus, a person's sense of 

ability to engage in responsible financial behavior can also contribute to the individual's 

performance of that behavior (Serido, Shim, & Tang, 2013). Based on (Faique et al., 2017), 

individuals who have high self-efficacy to carry out certain activities are more likely to try to do 

those activities and to develop a positive attitude towards them. Conversely, if individuals have 

low self-efficacy to do some activities, they tend to try to do those activities and they develop a 

negative attitude towards these actions. 

 

Research Framework 

To explain the influence of variables, a research framework can be formed as follows. 

 

 

Figure 1. Financial Behavior Research Framework 

Source: Self, 2020 

 

METHOD 

Place and Time of Research 

This research was conducted in the city of Pekanbaru and carried out in 2019 for the distribution 

of questionnaires and data processing in 2020. 

 

Types of Research 

This type of research is quantitative research with an objective descriptive approach using survey 

methods. Surveys are systems for gathering information from or about people to describe, 

compare, or explain their knowledge, attitudes, and behavior (Sekaran & Bougie, 2016). This 

research will look at factors that can influence Financial Behavior. This research is a cross-

sectional study. 

 

H3

H5

H1 H6

H2

H4

Financial

Knowledge

Financial

Self-Efficacy

Financial

Attitude

Financial

Behavior



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Research Variable 

Exogenous variables are variables that are not dependent on or predicted by other latent variables 

or indicators. The exogenous variable in this study is Financial Knowledge. While the 

endogenous variable is a variable predicted by other latent variables or indicators (Weston & 

Gore, 2006). Endogenous variables in this study are Financial Self-Efficacy, Financial Attitude, 

and Financial Behavior. 

 

Methods of Data Collection and Sampling 

Research techniques using surveys with a questionnaire instrument using a Likert scale. The 

estimated population in this study (adolescents aged 18-25 years) was ± 800,000 people. Klein 

recommends a minimum of 10 cases for each estimated parameter (Streiner, 2005). From the 4 

variables, there are 20 parameters, so a minimum sample of 20 x 10 = 200 samples is needed. 

From the 263 questionnaires distributed, a sample of 239 respondents could be used, with a 

combination of purposive sampling techniques (criteria for students of the Institut Bisnisdan 

Teknologi Pelita Indonesia at least in second semester) and convenience sampling. 

 

Research Instruments 

The instrument was given to respondents using the Likert scale 5-axis Likert scale technique to 

measure the research variables. Respondents will choose answers from positive statements with 

5 alternative choices with the following scores: (1) Strongly Disagree; (2) Disagree; (3) Not 

Agree; (4) Agree; (5) Strongly Agree. 

 

Questionnaire Indicator 

Indicators of each variable need to be elaborated to find out the indicators forming latent 

variables. Indicators of each variable can be seen in table 1. 

 

Table 1. Research Variable Indicators 

 

Attribute Indicator Reference 

 
Financial Attitude   

FA1 
I compare credit options when 

repayments 
(Potrich, Vieira, & Kirch, 2015) 

FA2 I invest regularly (Potrich et al., 2015) 

FA3 
I am responsible for my financial 

well-being 
(Susan, 2018) 

FA4 
I asked if I could get the same item at 

a lower price after buying 
(Ali, Rahman, & Bakar, 2013) 

FA5 I imagine how to treat money (Ali et al., 2013) 

   

 
Financial Behavior   

FB1 I have a reserve fund 

(Potrich et al., 2015) 
FB2 

I analyze finances before making a 

large purchase 

FB3 
I save money every month for future 

needs 
(Potrich, Vieira, & Mendes-Da-Silva, 2016) 

FB4 I made a plan to achieve financial (Susan, 2018) 



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Attribute Indicator Reference 

goals 

FB5 I buy bonds, stocks or mutual funds (Mien & Thao, 2015) 

 
    

 
Financial Knowledge   

FK1 
I understand interest rates, financial 

costs, and credit terms 

(Susan, 2018) FK2 
I understand investment returns and 

risks 

FK3 
I understand how to minimize risk in 

investments 

FK4 
Purchasing power decreases when 

inflation increases 
(Ali et al., 2013) 

FK5 

I understand financial concepts such 

as money management, investment, 

and budgeting 

(Kumar, Watung, N, & Luinata, 2017) 

 
    

 
Financial Self-Efficacy   

FS1 
I can always overcome difficult 

problems if I try hard 

(Lown, 2011) FS2 
I stick to spending plans when 

unexpected expenses arise 

FS3 
I am challenged to make progress 

towards financial goals 

FS4 I can find a way to get what I want (Schwarzer & Jerusalem, 1995) 

FS5 
I feel confident in my ability to 

manage my own finances 
(Serido et al., 2013) 

Source: Summary of various journals, 2020 

 

Data Analysis Technique 

Descriptive Analysis 

Descriptive analysis in this study contains a discussion of the characteristics of respondents 

related to respondent responses. First, the analysis of respondents' characteristics consisting of 

age, gender, marital status, employment, homeownership status, ethnicity, religion, income, 

placement of funds, and primary and secondary financial socialization agents. The analysis will 

be done using mode. Second, the analysis of respondents 'responses which contained a 

discussion of the respondents' responses related to the characteristics of respondents using the 

ANOVA method (Hafni, Renaldo, Chandra, & Thaief, 2020; Renaldo, Sudarno, & Hutahuruk, 

2020). 

 

Questionnaire Eligibility Test 

Before conducting the influence test, the primary data preliminary test is performed. Validity 

explains how well the data collected covers the actual area of investigation. Validity basically 

means measuring what is meant to be measured. Items loaded (loading factor) above 0.40, which 

is the minimum value suggested in the study are considered for further analysis. The second test 

is reliability which involves the extent to which the measurement of a phenomenon provides 



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stable and consistent results. Reliability is also related to repetition. For example, a scale or test 

is said to be reliable if repeated measurements made by it under constant conditions will give the 

same results. The most commonly used measure of internal consistency is the Cronbach’s Alpha 

coefficient. It is recommended that reliability must be equal to or above 0.60 (Taherdoost, 2016). 

 

Assumptions of Path Analysis 

Because the path analysis is an extension of multiple linear regression, many of the same 

assumptions apply to these two techniques. First, the relationship between variables must be 

linear. Second, there should be no interaction between variables. Third, endogenous variables 

must be continuous and normally distributed, with coefficients of skewness and kurtosis below 1. 

Fourth, it is assumed that the covariance between the terms disturbances are zero (equivalent to 

assuming an error does not correlate between predictor variables in the regression), even though 

the analysis variant a more advanced path can deal with violations of this assumption. 

Ultimately, as mentioned earlier, path analysis is quite sensitive to the model specifications 

including variables that are not relevant, or more seriously, eliminating those that are relevant, 

can drastically affect the results (Streiner, 2005). 

 

RESULTS 

Descriptive statistics 

The age of the most respondents is 20 years with a total of 36% and followed by the age of 19 

years with the number of respondents 32%. The number of male respondents was 59% and 41% 

female. Unmarried respondents were 96%. As many as 57% of respondents have worked full 

time and 14% of respondents have been self-employed followed by 12% who work part-time 

with the record respondents still come from among the students. Ownership of houses inhabited 

by respondents as much as 66% owned by parents and 24% are still renting. As many as 75% of 

respondents are Chinese and 11% are Batak Tribes. The majority of religious respondents were 

Buddhist 67% and 17% were Protestant Christians. The length of work of respondents is mostly 

under 5 years. The income of respondents is 92% under Rp. 5,000,000. As many as 38% of 

respondents learn financially from primary socialization agents (31% parents) and the rest from 

secondary agents (schools by 27%). To put down funds as much as 67% of respondents prefer to 

place funds in savings and 16% more in gold. From the descriptive analysis there is an 

assumption that ethnicity influences behavior patterns. In this study, Chinese adolescents showed 

behavior in a larger number pattern for the activity of saving some of their money in the bank. 

 

Analysis of Answers to Respondent Characteristics 

The Financial Self-Efficacy variable has different respondents' responses on ethnicity, religion, 

income, and secondary socialization agents. Respondents from other ethnic groups and Minang 

Tribe groups gave higher scores than the Nias Tribe group and respondents who did not provide 

answers. Hindu and Protestant Christians respondents gave a higher score than Confucianism. 

Respondents whose income is above 10 million rupiahs give a higher score than those whose 

income is 5 to 10 million rupiah. Respondents who learn financially from print media score 

higher than respondents who do not have secondary agents. The indicator "I am difficult to stick 

to the expenditure plan when unexpected expenses arise" has a different response at the age 

where respondents aged 24-25 years and respondents who did not give a higher score than 

respondents aged 18-19 years. 

 



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The Financial Attitude variable has different respondents' responses on marital status, ethnicity, 

and income. Unmarried respondents score higher than those who are separated. Respondents 

from other ethnic groups and Batak ethnic groups gave higher scores than Nias people. 

Respondents whose income is above 10 million give a higher score than those whose income is 5 

to 10 million rupiah and respondents who do not provide answers. The indicator "I compare 

credit options when repayments" has different responses of respondents to primary socialization 

agents where respondents who learn financially from siblings give a higher score than those who 

do not have primary socialization agents. This gives the meaning that ethnicity contributes to the 

pattern of Financial Attitude so that this research will be even more interesting when exploring 

the social behavior of certain circles of society. The Financial Knowledge variable has different 

respondents' responses to gender. Male respondents give a higher score than women. Especially 

on the indicator "I understand how to minimize risk in investment". Psychologically, men are 

riskier than women. Men are born as if they are responsible for making "lots of money" so that 

men are considered as a source of energy earners. Whereas women are only considered as 

financial managers rather than what is produced by men. 

Financial Behavior variables in general do not have differences in respondent responses. 

But on the indicator "I buy bonds, stocks, or mutual funds", respondents who like to put funds in 

securities give a higher score than those who put funds on digital assets. This means that men are 

more interested in physical than digital assets. 

 

Table 2. Results of the Questionnaire Eligibility Test 

 

Indicator 
Pearson 

Correlation 

Cronbach's 

Alpha  
Indicator 

Pearson 

Correlation 

Cronbach's 

Alpha 

FSE1 0,797*** 

0,803 

 
FK1 0,710*** 

0,803 

FSE2 0,645*** 
 

FK2 0,845*** 

FSE3 0,790*** 
 

FK3 0,835*** 

FSE4 0,777*** 
 

FK4 0,646*** 

FSE5 0,739*** 
 

FK5 0,708*** 

       FA1 0,674*** 

0,625 

 
FB1 0,746*** 

0,715 

FA2 0,192*** 
 

FB2 0,772*** 

FA3 0,718*** 
 

FB3 0,792*** 

FA4 0,663*** 
 

FB4 0,807*** 

FA5 0,769*** 
 

FB5 0,246*** 

*** Significant at 1% 
     

Source: Processed data, 2020 

 

Based on table 2, validity testing uses Pearson correlation which shows significant results 

at 1% for all indicators. Whereas for reliability testing with the lowest Cronbach's Alpha 0.625 

meets the requirements above 0.6. The next stage of analysis is path analysis. 

 

Table 3. Testing Results of Path Analysis 

 

Partial Test Estimate S.E. C.R. P 
Direct 

Effect 

Indirect 

Effect 

Squared Multiple 

Correlations 

FSE <--- FK 0,257 0,057 4,493 *** 0,280 0,000 0,078 



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Partial Test Estimate S.E. C.R. P 
Direct 

Effect 

Indirect 

Effect 

Squared Multiple 

Correlations 

FA <--- FSE 0,417 0,062 6,732 *** 0,393 0,000 
0,253 

FA <--- FK 0,218 0,057 3,822 *** 0,223 0,110 

FB <--- FA 0,485 0,062 7,762 *** 0,472 0,000 

0,343 FB <--- FSE 0,172 0,065 2,633 0,008 0,157 0,185 

FB <--- FK 0,061 0,057 1,077 0,282 0,061 0,201 

Source: Processed data, 2020 

 

Squared Multiple Correlations shows how much influence exogenous variables have on 

endogenous variables. Financial Knowledge gives a 7.8% influence on Financial Self-Efficacy. 

Financial Self-Efficacy and Financial Knowledge influence 25.3% of Financial Attitude. 

Financial Attitude, Financial Self-Efficacy, and Financial Knowledge influence 34.3% of 

Financial Behavior. 

 

Figure 2. Path Analysis Results 

Source: Processed data, 2020 

 

Direct and Indirect Effects 

Path analysis can analyze the direct and indirect effects between variables. The amount of direct 

and indirect influence can be seen in table 3 and the direction can be seen in figure 2. The direct 

effect of Financial Knowledge on Financial Attitude (0.223) is greater than the indirect effect of 

Financial Knowledge on Financial Attitude through Financial Self-Efficacy (0.110), then the 

direct influence that most influences which mean Financial Knowledge which will improve 

Financial Attitude. The direct influence of Financial Knowledge on Financial Behavior (0.061) is 

smaller than the indirect effect (0.201), then the most influential is the indirect effect which 

means through good Financial Knowledge, Financial Self-Efficacy, and Financial Attitude will 

improve financial behavior. The direct effect of Financial Self-Efficacy on Financial Behavior 

R
2
 = 0,078 R

2
 = 0,253

H3 0,393***

H5

0,28*** 0,157***

H1 H6

0,223*** H2

0,061

R
2
 = 0,343

*** significant at 1%

Hypothesis RejectedHypothesis Accepted

H4

0,472***

Financial

Knowledge

Financial

Self-Efficacy

Financial

Attitude

Financial

Behavior



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(0.157) is smaller than the indirect effect of Financial Self-Efficacy on Financial Behavior 

through Financial Attitude (0.185), then the most influential indirect effect which means a good 

Financial Self-Efficacy will increase Financial Behavior. 

 

DISCUSSION 

The positive influences of Financial Knowledge on Financial Self-Efficacy are significant 

because, with adequate knowledge, a person will have the desire to develop into a better person. 

The result of the study is in line with (Serido et al., 2013). Understanding financial concepts such 

as money management, investment, and budgeting will enable a person to overcome difficult 

financial problems if he/she tries hard. The positive influences of Financial Knowledge on 

Financial Attitude is significant because good financial knowledge will make someone more 

preventive. This are in line with research from (Susan, 2018; Yong et al., 2018). Adolescent 

understanding of financial concepts will positively determine their financial attitudes. 

Accountability for financial well-being shows good results. Adolescents like to try new things 

and form their personalities who like challenges. 

 The positive influences of Financial Self-Efficacy on Financial Attitude is significant 

because individuals have a high Self-Efficacy to do some activities, they tend to try to do this 

activity and they develop a positive attitude towards this action. The result of this study is in line 

with research from (Faique et al., 2017). Individuals will be more mature and will not think too 

much about financial problems such as fighting with parents or family about finances. The 

indicator "I can always overcome difficult problems if I try hard" shows an independent 

personality that is very consistent and strengthens the character of individuals plus the indicator 

"I feel confident in my ability to manage my own finances" shows high confidence that will 

encourage someone's independence .The positive influences of Financial Knowledge on 

Financial Behavior is not significant because adolescents still do not have much experience in 

finance so they cannot behave properly. This are in line with research from (Yong et al., 2018)on 

Indian ethnic and (Joo & Grable, 2004) but not in line with research from (Arifin, 2017, 2018; 

Ismail et al., 2017; Mien & Thao, 2015) and (Yong et al., 2018) on other ethnics. It is only 

natural if their knowledge is still lacking in financial analysis. Lack of knowledge about financial 

knowledge will lead to bankruptcy, credit problems, low savings rates, and the pleasure of 

impulsive purchases. 

 The positive influences of Financial Self-Efficacy on Financial Behavior are significant 

because good financial efficacy will be in line with adolescent financial habits. The results of this 

study are in line with research from (Faique et al., 2017; Herawati et al., 2018; Ismail et al., 

2017; Serido et al., 2013). Adolescents who are independent and dare to go outside the 

city/country to study or work. The lifestyle of saving for the necessities of living outside will 

make them more careful when shopping and will change their behavior slowly. The positive 

influences of Financial Attitude on Financial Behavior is significant because a person's attitude 

towards finances will affect the person's habits. The results of the study are in line with 

(Ameliawati & Setiyani, 2018; Arifin, 2018; Faique et al., 2017; Mien & Thao, 2015; Serido et 

al., 2013; Susan, 2018; Yap, Komalasari, & Hadiansah, 2016; Yong et al., 2018)and not in line 

with research (Falahati et al., 2012; Ismail et al., 2017). Adolescents who mostly wander allocate 

money from their parents (for those who are not yet working) depending on each other's 

behavior. Some of them even spend it and ask for extra and some set aside to save. This can form 

a personality that has prepared everything for its future, especially if there is an urgent need. 

 



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26 

CONCLUSIONS AND RECOMMENDATIONS 

This study aims to observe to explore the most influential factors on Financial Behavior among 

graduate students in Indonesia. The results of the study concluded that there is an influence that 

gives meaning to Financial Knowledge on Financial Self-Efficacy; Financial Self-Efficacy and 

Financial Knowledge of Financial Behavior; Financial Attitude and Financial Self-Efficacy 

towards Financial Behavior but there is no significant influence of Financial Knowledge on 

Financial Behavior for students in Indonesia. The results showed that adolescent habits are still 

not good but can be improved through education such as character education and achievement of 

a better motivation to deal with economic problems. Good habits can be passed on to friends of 

his age, especially adolescents so they can have a good future. The weakness of this study is that 

the sample size is small and homogeneous. The variables used are still limited to those 

commonly used in Human Resource Management research, and the analysis technique is still 

simple. It is hoped that future research can use a more diverse sample, use an interdisciplinary 

(interdisciplinary/cross-science) approach and methods that can strengthen the hypothesis to be 

tested. 

 

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