Economics & Sociology

ISSN: 2071-789X eISSN: 2306-3459 DOI: 10.14254/2071-789X
Index PUBMS: f5512f57-a601-11e7-8f0e-080027f4daa0
Article information
Title: Financial literacy and its variables: The evidence from Indonesia
Issue: Vol. 13, No 3, 2020
Published date: 09-2020 (print) / 09-2020 (online)
Journal: Economics & Sociology
ISSN: 2071-789X, eISSN: 2306-3459
Authors: Vera Intanie Dewi
Universitas Katolik Parahyangan

Erie Febrian
Universitas Padjadjaran

Nury Effendi
Universitas Padjadjaran

Mokhamad Anwar
Universitas Padjadjaran

Sulaeman Rahman Nidar
Universitas Padjadjaran
Keywords: financial literacy, financial behavior, financial decisions, financial goal, financial knowledge, Lecturer, Indonesia
DOI: 10.14254/2071-789X.2020/13-3/9
Index PUBMS: ea2922ff-0d34-11eb-a151-fa163e0fa1a0
Language: English
Pages: 133-154 (22)
JEL classification: H40

The purpose of this study is to investigate and measure the level of financial literacy and its variables within the academic community in Indonesia. The strength of this study is that it extends the concept of financial literacy and its variables. This study explains how members of Indonesian academic community understood their financial literacy levels and the ways in which it can be improved. The study sample comprised 889 lecturers in Indonesia. The survey method was used to measure financial literacy and its variables which include subjective financial knowledge, financial behavior, financial experience, financial awareness, financial skills, financial capability, financial goal, and financial decisions, as reflected in individuals’ financial behavior. The research data were collected using a quantitative survey and were analyzed using structural equation modeling (SEM). The results confirm the relationships between financial literacy and its variables of financial awareness, financial behavior, financial experience, financial skills, subjective financial knowledge, financial capability, financial goals, and financial decisions. This study fills the gap in the literature related to the multi-variables of financial literacy. It provides information to assist policy-makers in developing strategies to increase financial literacy in society.


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