Abstract:
At the university level, most of students will face their first independence life. It
brings challenges for a lot of young people, where they have to learn to manage their
own needs, especially for those who are not under family control. Since
undergraduate students have learned about the financial instrument formally and
informally, it gives some influences towards financial behavior. The interaction with
others -peer or community- also can influence people's behavior. However, selfmotivation
also should be considered as the factor in determining people's behavior,
including financial behavior. Financial behavior will be classified into four financial
activities, which are budgeting, saving, spending, and investing. The aim of this
research was to find the best approaches for undergraduate students to improve their
financial behavior, by finding the most significant factor towards each financial
activity. The selected dependent variables are financial education, family influence,
peer influence, and self-motivation. The data was collected by numbers of 400
respondents from undergraduate students in Indonesia. It was analyzed by Structural
Equation Modeling (SEM) and dependent t-test. The result is financial education and
family has significant influence in financial behavior of undergraduate students.
There is different behavior that occured between students who had experience in
financial education and who had no experience in financial education as well as
between students who lived with their parents and who lived separately from their
parents.
