Vera Intanie Dewi

Universitas Katolik Parahyangan,

Bandung, Indonesia

E-mail: vera_id@unpar.ac.id

ORCID 0000-0002-6989-6859

Financial literacy and its variables: The evidence from Indonesia

Erie Febrian

Universitas Padjadjaran,

Bandung, Indonesia

E-mail: erie.febrian@unpad.ac.id

Nury Effendi

Universitas Padjadjaran,

Bandung, Indonesia

E-mail: nury.effendi@unpad.ac.id

Mokhamad Anwar

Universitas Padjadjaran,

Bandung, Indonesia

E-mail: mokhamad.anwar@unpad.ac.id

ORCID 0000-0003-2641-7667

Sulaeman Rahman Nidar

Universitas Padjadjaran,

Bandung, Indonesia

E-mail: sulaeman.rahman@unpad.ac.id

Abstract. 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.

Received: September, 2019

1st Revision: May, 2020

Accepted: September, 2020

DOI: 10.14254/2071-789X.2020/13-3/9

JEL Classification: G41, G51, G53

Keywords: financial literacy, financial behavior, financial decisions, financial goal, financial knowledge, Lecturer, Indonesia