The Determinants of Financial Literacy towards Disparity among Indonesian Business Student

Abstract

People with a higher level of financial literacy tend to be more proper in making their financial decision, manage their money well and make contribute to their prosperity. Unfortunately, people in many levels were lack of financial literacy. Demographic factors such as age, gender, ethnicity and also financial education are generally assumed as the factors that affect financial literacy. However, there are also some evidences prove that those factors have no effect on increasing financial literacy. This research focuses on financial literacy of business students Institut Teknologi Bandung. This research is intended to examine the level of financial literacy index of students and examine which demographic factors impact financial literacy index of students using multi-linear regression as the analytical tool. The data for this research was collected through questionnaire adapted from DEFINIT-SEADI_OJK (2013) and distributed to 300 business students in ITB. The finding of this research indicates that the financial literacy index of students is generally in low level of financial literacy and the determinants of financial literacy among business students are age, gender, and financial education.