The Effect of Personal Finance Education on The Financial Knowledge, Attitudes and Behaviour of University Students in I
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ORIGINAL PAPER
The Effect of Personal Finance Education on The Financial Knowledge, Attitudes and Behaviour of University Students in Indonesia Irni Johan1 · Karen Rowlingson2 · Lindsey Appleyard3 Accepted: 28 September 2020 © The Author(s) 2020
Abstract There is much debate about the impact of personal finance education on financial knowledge, attitudes and behaviour, particularly based on studies in the United Kingdom (UK) and United States of America (US). This paper makes a contribution to this debate, drawing on analysis of a survey of 521 undergraduate students at Bogor Agricultural University (IPB) in Indonesia in 2015. As part of that study, we measured the impact of a 14-week personal finance education course on financial knowledge, attitudes and behaviour. Our findings show that, when controlling for other factors, the personal finance course did, indeed, have a positive and statistically significant impact on financial knowledge. However, there was no statistically significant impact of the course on financial attitudes or behaviour. Our analysis also shows that family financial socialisation was an important driver of financial knowledge, attitudes and behaviour while other drivers of financial behaviour included income, work experience, year/field of study and discussing money with friends. We do not argue here that formal financial education is unimportant but that its role in changing attitudes and behaviour should be considered carefully if this is, indeed, its aim. Keywords Financial education · Financial knowledge · Financial attitudes · Financial behaviour
Introduction Financial Capability and Education in an Increasingly Financialised World Financialisation and the rapid advances in information technology throughout the world have created a more complex The research for this paper was carried out as part of doctoral studies by Irni Johan who was awarded her PhD in 2018 (see https://etheses.bham.ac.uk/id/eprint/8171/). Electronic supplementary material The online version of this article (https://doi.org/10.1007/s10834-020-09721-9) contains supplementary material, which is available to authorized users. * Karen Rowlingson [email protected] 1
Department of Family and Consumer Sciences, IPB University, Bogor, Indonesia
2
School of Social Policy, University of Birmingham, Edgbaston, Birmingham B15 2TT, UK
3
Centre for Business in Society, Coventry University, Coventry CV1 5FB, UK
and dynamic financial sector, in terms of both products and systems (Marcolin and Abraham 2006). Individuals in low, middle, and high income countries are increasingly engaging with this financialised world and this has made money management more complex generally while also opening people up to new vulnerabilities such as risky financial transactions, misleading information, fraud and so on. Younger generations today are in a particularly challenging situation. Jiang and Dunn (2013) revealed that young people had higher levels of debt, spent more money on credit cards, and tended to pay off bi
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