ESTIMATING A MODEL OF FINANCIAL SOCIALIZATION AMONG COLLEGE STUDENTS

Abstract

In Indonesia, financial literacy is quite low. College students are one of piority target to sucessful financial literacy in Indonesia. Financial Service Authority (Otoritas Jasa Keuangan) tries to increase financial literacy through educating society program with the aim of building financial behavior. Parents have importance role within building financial behavior. Financial Behavior creating from financial socialization and leads to financial learning then continue to financial attitudes and leads to financial behavior. However, this time to college students to practice idependently how manage their money without supervisor of parents. This research observed relationship between financial socialization, financial learning, financial attitudes and financial behavior.The sample of this study were 400 college students eight most expensive college students in Indonesia.This research used Structural Equation Modeling (SEM) to find out the influence of variables. The result of this research showed that financial socialization has influenced to financial learning, financial attitudes and financial behavior. In order to improve financial literacy in Indonesia, financial socialization should be improved as well as parents influence.