e-ISSN 2231-8526
ISSN 0128-7680

Home / Regular Issue / JST Vol. 30 (2) Jun. 2022 / JSSH-8449-2021


The Influence of Financial Literacy and Attitude Towards Financial Behaviour Amongst Undergraduate Students: A Cross-Country Evidence

Hanin Khalisharani, Irni Rahmayani Johan and Mohamad Fazli Sabri

Pertanika Journal of Science & Technology, Volume 30, Issue 2, June 2022


Keywords: Cross-country, financial attitude, financial behaviour, financial literacy, Indonesia, Malaysia, undergraduate students

Published on: 9 June 2022

Undergraduate students should be able to manage their finances wisely while they are living apart from their parents. Therefore, good financial literacy and attitude should be developed during college to instil positive financial behaviour. It is a cross-country study to analyse the influence of financial literacy and attitude toward financial behaviour amongst Indonesian and Malaysian undergraduate students. This research involved 204 students from the Faculty of Human Ecology, IPB University, Indonesia, and Universiti Putra Malaysia. Data were collected through a self-report questionnaire with a convenience sampling technique. In general, the results revealed that the student’s level of financial literacy was recorded as moderate, while financial attitude and behaviour were categorised as poor. This study identified that Indonesian students scored higher in financial literacy, whereas Malaysian students recorded better financial attitude and behaviour scores. Multiple regression results showed that financial attitude had a significant positive effect on financial behaviour amongst Indonesian and Malaysian students and the group. In contrast, financial literacy had a negative effect on financial behaviour amongst the respondents, except in Malaysia. Moreover, students’ characteristics, such as age, grade point average (GPA), and income, had no significant impact on financial behaviour. The presence of financial education and socialisation to enhance financial behaviour are needed not only to focus on cognitive areas but also to encourage a positive attitude. Stronger support and regulation from the government and stakeholders are vital to ensure the programme’s success.

  • Abdullah, N., Sabri, M. F., & Arif, A. M. M. (2019). The relationship between attitude towards money, financial literacy, and debt management with young worker’s financial well-being. Pertanika Journal of Social Sciences and Humanities, 27(1), 361-387.

  • Ajzen, I. (1991). The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50(2), 179-211.

  • Amanah, E., Rahardian, D., & Iradianty, A. (2016). Pengaruh financial knowledge, financial attitude dan external locus of control terhadap personal financial management behavior pada mahasiswa S1 Universitas Telkom [The influence of financial knowledge, financial attitude and external locus of control on personal financial management behaviour case study of bachelor’s degree student of Telkom University]. E-Proceeding of Management, 3(2), 1228-1235.

  • Ameliawati, M., & Setiyani, R. (2018). The influence of financial attitude, financial socialization, and financial experience to financial management behavior with financial literacy as the mediation variable. KnE Social Sciences, 3(10), 811-832.

  • Appleyard, L., & Rowlingson, K. (2013). Children and financial education: Challenges for developing financial capability in the classroom. Social Policy and Society, 12(4), 507-520.

  • Asian Institute of Finance. (2018, October 9). Understanding millennials: Finance matters [Paper presentation]. Housing Conference 2018, Kuala Lumpur, Malaysia.

  • Badan Pusat Statistik. (2020). Statistik pemuda Indonesia 2020.

  • Bucher-Koenen, T., & Lusardi, A. (2011). Financial literacy and retirement planning in Germany. Journal of Pension Economics and Finance, 10(4), 565-584.

  • Budiono, E. (2020). Analisis financial knowledge, financial attitude, income, locus of control, financial management behavior masyarakat Kota Kediri [Analysis of financial knowledge, attitude, income, locus of control, and financial management behaviour of Kediri City]. Ilmu Manajemen, 8(1), 284-295.

  • DEFINIT, SEADI, & OJK. (2013). Developing Indonesian financial literacy index.

  • Department of Statistics Malaysia. (2016). Laporan penyiasatan pendapatan isi rumah dan kemudahan asas [Household income and basic amenities survey report].

  • Department of Statistics Malaysia. (2021). Population and demography.

  • Dew, J., & Xiao, J. J. (2013). The financial management behavior scale: Development and validation. Journal of Financial Counseling and Planning, 22(1), 43-59.

  • Dewi, N., Rusdarti, & Sunarto, S. (2017). Pengaruh lingkungan keluarga, teman sebaya, pengendalian diri dan literasi keuangan terhadap perilaku konsumtif mahasiswa [The influence of family environment, peers, self-control and financial literacy on student consumptive behaviour]. Economic Education Analysis Journal, 6(1), 29-35.

  • Dwiastanti, A. (2015). Financial literacy as the foundation for individual financial behavior. Journal of Education and Practice, 6(13), 99-105.

  • Engel, J. F., Blackwell, R. D., & Miniard, P. W. (1995). Consumer behaviour. The Dryden Press.

  • Fan, L., & Chatterjee, S. (2018). Financial socialization, financial education, and student loan debt. Journal of Family and Economic Issues, 40(1), 74-85.

  • Fenton-O’Creevy, M., Dibb, S., & Furnham, A. (2018). Antecedents and consequences of chronic impulsive buying: Can impulsive buying be understood as dysfunctional self-regulation? Psychology and Marketing, 35(3), 175-188.

  • Gerrans, P., & Heaney, R. (2016). The impact of undergraduate personal finance education on individual financial literacy, attitudes and intentions. Accounting and Finance, 59(1), 177-217.

  • Harrison, T., Marchant, C., & Ansell, J. (2016). Young adults’ financial capability. The Money Advice Service.

  • Herawati, N. T., Candiasa, I. M., Yadnyana, I. K., & Suharsono, N. (2018). Factors that influence financial behavior among accounting students in Bali. International Journal of Business Administration, 9(3), 30-38.

  • Herdjiono, I., & Damanik, L. A. (2016). Pengaruh financial attitude, financial knowledge, parental income terhadap financial management behavior [The influence of financial attitude, financial knowledge, and parental income on financial management behaviour]. Jurnal Manajemen Teori Dan Terapan/Journal of Theory and Applied Management, 9(3), 226-241.

  • Hilgert, M. A., Hogarth, J. M., & Beverly, S. G. (2003). Household financial management: The connection between knowledge and behavior. Federal Reserve Bulletin, 309-322.

  • Humaira, I., & Sagoro, E. M. (2018). Pengaruh pengetahuan keuangan, sikap keuangan, dan kepribadian terhadap perilaku manajemen keuangan pada pelaku UMKM sentra kerajinan batik Kabupaten Bantul [The influence of financial knowledge, financial attitude, and personality towards financial management behavior among the Small and Medium Enterprises (SMEs) at Batik Craft of Bantul Regency]. Jurnal Nominal, 7(1), 96-110.

  • Ida, & Dwinta, C. Y. (2010). Pengaruh locus of control, financial knowledge, dan income terhadap financial management behavior [The influence of locus of control, financial knowledge, and income toward financial management behaviour]. Jurnal Bisnis dan Akuntansi, 12(3), 131-144.

  • Idris, F. H., Krishnan, K. S. D., & Azmi, N. (2013). Relationship between financial literacy and financial distress among youths in Malaysia - An empirical study. Geografia-Malaysian Journal of Society and Space, 9(4), 106-117.

  • Jacob, K. (2002). Evaluating your financial literacy program: A practical guide. Woodstock Institute.

  • Johan, I., Rowlingson, K., & Appleyard, L. (2021). The effect of personal finance education on the financial knowledge, attitudes and behavior of university students in Indonesia. Journal of Family and Economic Issues, 42(1), 351-367.

  • Khoirunnisaa, J., & Johan I. R. (2020). The effects of financial literacy and self-control towards financial behavior among high school students in Bogor. Journal of Consumer Sciences, 5(2), 73-86.

  • Klapper, L., & Panos, G. A. (2011). Financial literacy and retirement planning: The Russian case. Journal of Pension Economics and Finance, 10(4), 599-618.

  • Kholilah, N. A, & Iramani, Rr. (2013). Studi financial management behavior pada masyarakat Surabaya [Financial management behaviour study among Surabaya citizens]. Journal of Business and Banking, 3(1), 69-80.

  • Laily, N. (2013). Pengaruh literasi keuangan terhadap perilaku mahasiswa dalam mengelola keuangan [The effect of financial literacy on students’ financial management behaviour]. JPA UM Malang, 1(4), 277-285.

  • Loke, Y. J. (2015). Financial knowledge and behaviour of working adults in Malaysia. Margin: The Journal of Applied Economic Research, 9(1), 18-38.

  • Loke, Y. J. (2017). The influence of socio-demographic and financial knowledge factors on financial management. International Journal of Business and Society, 18(1), 33-50.

  • Lusardi, A., & Mitchell, O. S. (2005). Financial literacy and planning: Implications for retirement wellbeing (Working Paper No. 17078). National Bureau of Economic Research (NBER).

  • Lusardi, A., & Mitchell, O. S. (2011). Financial literacy around the world: An overview. Journal of Pension Economics and Finance, 10(4), 497-508.

  • Lusardi, A., Mitchell, O. S., & Curto, V. (2010). Financial literacy among the young. Journal of Consumer Affairs, 44(2), 358-380.

  • Margaretha, F., & Pambudhi, R. A. (2015). Tingkat literasi keuangan pada mahasiswa S-1 Fakultas Ekonomi. Jurnal Manajemen dan Kewirausahaan, 17(1), 76-85.

  • Miền, N., & Thao, T. P. (2015, July 10-12). Factors affecting personal financial management behaviors: Evidence from Vietnam. Proceedings of the Second Asia-Pacific Conference on Global Business, Economics, Finance and Social Sciences (AP15Vietnam Conference), Danang City, Vietnam.

  • Mohamad, A. (2020, October 13). Financial literacy among youth alarmingly low. New Straits Times.

  • Mokhtar, N., Sabri, M. F., & Ho, C. S. F. (2020). Financial capability and differences in age and ethnicity. The Journal of Asian Finance, Economics and Business, 7(10), 1081-1091.

  • Mutlu, Ü., & Özer, G. (2021). The moderator effect of financial literacy on the relationship between locus of control and financial behavior. Kybernetes.

  • Nababan, D., & Sadalia, I. (2012). Analisis personal financial literacy dan financial behavior mahasiswa strata I Fakultas Ekonomi Universitas Sumatera Utara [Analysis of personal financial literacy and financial behavior of undergraduate students of the Faculty of Economics, University of North Sumatra]. Media Informasi Manajemen, 1(1), 1-16.

  • Organisation for Economic Co-operation and Development. (2020). OECD/INFE 2020 international survey of adult financial literacy.

  • Programme for International Student Assessment. (2019). PISA 2021 financial literacy analytical and assessment framework. OECD.

  • Putri, P. T., & Simanjuntak, M. (2020). The role of motivation, locus of control and financial literacy on women investment decisions across generations. Journal of Consumer Sciences, 5(2), 102-123.

  • Ramasawmy, D., Thapermall S., Dowlut S. A., & Ramen M. (2013, February 25-26). A study of the level of awareness of financial literacy among management undergraduates. Proceedings of 3rd Asia-Pacific Business Research Conference, Kuala Lumpur, Malaysia.

  • Ridhayani, F., & Johan, I. R. (2020). The influence of financial literacy and reference group toward consumptive behavior across senior high school students. Journal of Consumer Sciences, 5(1), 29-45.

  • Sabri, M. F., MacDonald, M., Masud, J., Paim, L., Hira, T. K., & Othman, M. A. (2008). Financial behavior and problems among college students in Malaysia: Research and Education Implication. Consumer Interests Annual, 54, 166-170.

  • Sabri, M. F., & Aw, E. C. X. (2019). Financial literacy and related outcomes: The role of financial information sources. International Journal of Business and Society, 20(1), 286-298.

  • Sabri, M. F., & Aw, E. C. X. (2020). Untangling financial stress and workplace productivity: A serial mediation model. Journal of Workplace Behavioral Health, 35(4), 211-231.

  • Sabri, M. F., Aw, E. C. X., Rahim, H. A., Burhan, N. A. S., Othman, M. A., & Simanjuntak, M. (2021). Financial literacy, behavior and vulnerability among Malaysia households: Does gender matter? International Journal of Economics & Management, 15(2), 241-256.

  • Sabri, M. F., Gudmunson, C. G., Griesdorn, T. S., & Dean, L. R. (2020). Influence of family financial socialization on academic success in college. Journal of Financial Counselling and Planning, 31(2), 267-283.

  • Schiffman, L. G., & Kanuk, L. L. (2010). Consumer behavior. Pearson Education.

  • Selcuk, E. A. (2015). Factors influencing college students’ financial behaviors in Turkey: Evidence from a national survey. International Journal of Economics and Finance, 7(6), 87-94.

  • Serido, J., Shim, S., & Tang, C. (2013). A developmental model of financial capability: A framework for promoting a successful transition to adulthood. International Journal of Behavioral Development, 37(4), 287-297.

  • Shaari, N. A., Hasan, N. A., Mohamed, R. K. M. H., & Sabri, M. A. J. M. (2013). Financial literacy: A study among the university students. Interdisciplinary Journal of Contemporary Research in Business, 5(2), 279-299.

  • Shih, T. Y., & Ke, S. C. (2014). Determinates of financial behavior: Insights into consumer money attitudes and financial literacy. Service Business, 8(2), 217-238.

  • Shim, S., Xiao, J. J., Barber, B., & Lyons, A. (2009). Pathways to life success: A conceptual model of financial well-being for young adults. Journal of Applied Developmental Psychology, 30(6),708-723.

  • Shinta, R. E., & Lestari, W. (2019). Pengaruh financial knowledge, lifestyle pattern pada perilaku manajemen keuangan wanita karir dengan locus of control sebagai variabel moderasi [The impact of financial knowledge and lifestyle pattern on financial management behavior of career women, with locus of control as the moderating variable]. Journal of Business & Banking, 8(2), 271-283.

  • Sina, P. G. (2014). Tipe kepribadian dalam personal finance [Personality types in personal finance]. Jurnal JIBEKA, 8(1), 54-59.

  • Sohn, S., Joo, S., Grable, J. E., Lee, S., & Kim, M. (2012). Adolescents’ financial literacy: The role of financial socialization agents, financial experiences, and money attitudes in shaping financial literacy among South Korean youth. Journal of Adolescence, 35(4), 969-980.

  • Solomon, M. R. (2013). Consumer behavior: Buying, having, and being. Pearson Education.

  • Soraya, S., Hastuti, D., & Johan I. R. (2021). The influence of parents feeding practices, eating knowledge, and attitude on eating behavior among senior high school students in South Tangerang, Indonesia. Open Access Macedonian Journal of Medical Sciences, 9(E), 913-918.

  • Suryanto. (2017). Pola perilaku keuangan mahasiswa di perguruan tinggi [Pattern of financial behaviour among university students]. Jurnal Ilmu Politik dan Komunikasi, 7(1), 11-19.

  • Susan, M., & Djajadikerta, H. (2017). Understanding financial knowledge, financial attitude, and financial behavior of college students in Indonesia. Advanced Science Letters, 23(9), 8762-8765.

  • Tang, T. L. P. (1992). The development of a short money ethic scale: Attitudes toward money and pay satisfaction revisited. Personality Individual Differences, 19(6), 809-816.

  • Urban, C., Collins, J. M., Schmeiser, M., & Brown, A. (2015, January). State financial education mandates: It’s all in the implementation. FINRA Investor Education Foundation.

  • Worthy, S. L., Jonkman, J., & Blinn-Pike, L. (2010). Sensation-seeking, risk-taking, and problematic financial behaviors of college students. Journal of Family and Economic Issues, 31(2), 161-170.

  • Xiao, J. J. (2016). Consumer financial capability and wellbeing. In J. J. Xiao (Ed.), Handbook of Consumer Finance Research: Second Edition (pp.3-17). Springer International Publishing.

  • Xiao, J. J., Tang, C., & Shim, S. (2009). Acting for happiness: Financial behavior and life satisfaction of college students. Social Indicators Research, 92(1), 53-68.

  • Yahaya, R., Zainol, Z., Abidin, J., & Ismail, R. (2019). The effect of financial knowledge and financial attitudes on financial behavior among university students. International Journal of Academic Research in Business and Social Sciences, 9(8), 22-32.

  • Yamauchi, K. T., & Templer, D. I. (1982). The development of a money attitude scale. Journal of Personality Assessment, 46(5), 522-528.

  • Yap, R. J. C., Komalasari, F., & Hadiansah, I. (2018). The effect of financial literacy and attitude on financial management behavior and satisfaction. Bisnis & Birokrasi Journal, 23(3), 140-146.

  • Yong, C. C., Yew, Y. S., & Wee, C. K. (2018). Financial knowledge, attitude and behaviour of young working adults in Malaysia. Institutions and Economies, 10(4), 21-48.

ISSN 0128-7680

e-ISSN 2231-8526

Article ID


Download Full Article PDF

Share this article

Recent Articles