Factors Influencing the Consumptive Behavior of University Students in Bali

Abstract

This study aims to investigate the influence of financial literacy, financial behavior, and financial attitude on consumptive behavior among public university students in Bali. The rising consumption index in Indonesia is an issue of concern, especially among the younger generations. Using the theory of planned behavior this study proposes that financial knowledge (financial literacy, financial behavior, and financial attitude) can affect personal finance-related decision-making processes and behaviors. This study collects data through a questionnaire from 500 University of Udayana and University of Ganesha students. This study uses IBM SPSS Statistics 26 to run the data. The results of this study indicate that financial literacy, financial behavior, and financial attitude significantly impact consumptive behavior. A high financial literacy and financial attitudes reduce excessive consumptive behavior, while positive financial behavior will increase consumptive behavior. This study contributes to the scant literature of consumptive behavior by extending the scope of previous studies, providing deeper insights on how financial knowledge can determine consumptive behavior. The results indicate the need for effective financial education programs and financial products for the younger generation, specifically in Bali, to overcome the issue of consumptive behavior. Nevertheless, it is essential to recognise the findings of this study while being aware of certain limitations that do not diminish the overall quality of the research. This study was carried out in a specific province in Indonesia, focussing solely on universities in Bali, examining the influence of financial literacy, financial behaviour, and financial attitude on consumptive behaviour without considering other possibly relevant factors.