Analysis of the Influence of Financial Literacy, Lifestyle, and Social Environment on Student Financial Management

Abstract

In this modern era, financial literacy is the main factor that influences a person's abilities in managing student finances effectively. Effective personal financial management It is very important to maintain financial stability, especially among students who frequently experience stress in managing their finances. The aim of this research is to learn how financial literacy, lifestyle, and social environment influence the way students manage their finances. The method used in this research is quantitative from data obtained from the results of the questionnaire. The population sampled in This research included 87 university and private students in Indonesia respondents. Data analysis was carried out using multiple linear regression using (SPSS) version 22. This research shows that knowledge about finances, lifestyle, and the social environment has a significant and positive influence on the way students manage their finances. Students who have a high level of financial literacy tend to be wise in managing finances. Lifestyle has also been shown to influence spending decisions students, where a consumptive lifestyle can increase the tendency to waste. Temporary Therefore, the social environment, both from family and friends, has a significant impact on form a pattern of student financial management. This research suggests a need for improvement financial literacy education among students as well as the positive influence of the social environment encourage better financial management actions.