Empowering students: Unleashing the impact of economic literacy and family education on economic decision-making, with a focus on economic rationality

Abstract

This research aims to describe and analyze the influence of economic literacy on student economic behavior, the influence of family financial education on student economic behavior, the impact of economic rationality on student economic behavior, and how economic rationality mediates the relationship between economic literacy and student economic behavior. Rationality economics mediates the relationship between financial education in the family and students' financial behavior. The participants in this study were all students from the State University of Malang, East Java, Indonesia, class of 2021, totaling 6,645 students with a total sample of 287 students. This study used a two-stage sampling technique. The first stage of selection in this research used a regional sampling technique (cluster sampling); in the second stage, the selection was carried out randomly (random sampling). The method used was quantitative research with path analysis techniques using the IBM SPSS-AMOS version 26 software program with structured equation modeling analysis (SEM). The model analysis results show that the constructs ECL, PEKO, RAS, PE, and their components are valid or valid as models. Research data also prove that rationality has a significant relationship with economic behavior.