The Influence of Financial Literacy, Family Environment and Pocket Money on Student Financial Management

Abstract

The development of information technology encourages practical life among students, one of which is online shopping, the shopping system is allegedly having a low impact and a wasteful life. In terms of economics, students who do not yet have income but do not have good financial management skills, live extravagantly. This research aims to analyze the effect of financial literacy, family environment and pocket money on financial management of students at Muhammadiyah University of Surakarta. In accordance with the formulation of the problem, the right type of research is quantitative with a survey design, research subjects are active students who take financial management courses, questionnaire research instruments, random sampling is carried out using questionnaires distributed via google form as an instrument in the technique data collection. The data analysis technique used is multiple regression analysis. The results include 1) financial literacy has a positive and significant effect on student financial management, 2) family environment has a positive and significant effect on student financial management, 3) pocket money has a negative effect on student financial management , however, 4) financial literacy, family environment, and pocket money simultaneously have an influence on the financial management of students.