THE INFLUENCE OF FINANCIAL LITERACY ON CONSUMPTIVE BEHAVIOR AMONG MANAGEMENT STUDENTS IN BANDUNG

Abstract

Abstract

The prevalence of consumptive behavior among university students has been on the rise, driven by rapid technological developments and increasingly accessible financial services. This research investigates the effect of financial literacy on the spending patterns of management students in Bandung. Employing a quantitative research design with a survey-based methodology, data were gathered from 90 respondents through structured questionnaires utilizing a Likert-scale format to assess both financial literacy and consumptive tendencies. Findings from the simple linear regression analysis reveal a significant positive relationship between financial literacy and consumptive behavior, as indicated by a regression coefficient of 0.514. Despite having a moderate to high level of financial knowledge, students still exhibit strong consumptive tendencies. This suggests that enhanced financial literacy may not suppress consumption levels but instead encourage more deliberate and strategic spending behavior. Accordingly, the study recommends the development of customized financial literacy initiatives that align with student demographics and socioeconomic contexts, aiming to promote better financial planning and long-term financial well-being.

Keywords: Bandung students, Consumptive behavior, Financial literacy, Financial well-being, Regression analysis