Self-Control, Financial Literacy, and Behavior in Organizing Money

Abstract

The higher educational institutions' students are familiar with technological advancement. As a terrible consequence, they will be trapped in incontrollable consumption by purchasing something they do not need. This circumstance cannot be separated from their classmate's trendy lifestyle and lures. This situation leads to poor organizing money. Besides, according to previous studies, this poor money management is usually affected by low financial literacy. Therefore, this investigation examines the influence of self-control and financial literacy on money management behavior. The population in this research consists of 1,226 active undergraduate students in the accounting and management departments from batches 2016 to 2021 in the business faculty at Maranatha Christian University. Based on the Slovin formula with a 5% fault boundary, the sample size is 302. Considering this situation, we use a stratified random sampling technique by treating the batches as strata. Then, we distribute the questionnaire to them. Unfortunately, only 94 students respond; the response rate is 31.17%. After analyzing their response by a structural equation model based on partial least squares, we conclude that self-control positively affects students' behavior in organizing their money. Unfortunately, financial literacy does not.