Analysis of the Effects of Students’ Personal Financial Literature on Consumptive Behavior at Universitas Muhammadiyah Surakarta

Abstract

According to a poll conducted by Kompas Indonesia, students are more likely to behave consumptively. Consumptive conduct is the outcome of a person's lack of financial knowledge. Consumptive behavior means consuming goods or services in excess, not based on need. As a result, individuals lose control over themselves. The purpose of this study is to describe the influence of finance on consumptive behavior. The effect of financial literacy variables on students' consumptive behavior was measured using a quantitative approach in this study. Students from Universitas Muhammadiyah Surakarta were the population. In the sampling method, the researchers used a simple random sampling technique. The data for this study were collected using a questionnaire or a questionnaire via a Google Form and then analyzed using a simple regression test. Based on the results of simple linear regression analysis and T-test, financial literacy had a significant negative effect on the consumptive behavior of students at Universitas Muhammadiyah Surakarta. A person with a high understanding of financial literacy has a better economic life, makes financial decisions easier for him, and has lower consumptive behavior.