The Effect Of Financial Literacy and Pocket Money on Consumer Behavior of Universitas Muhammadiyah Surakarta (Ums) Students

Abstract

Financial literacy is the life skill necessary to manage financial behavior intelligently in everyday life. Arranging financial expenditures is required for students to allow parental allowance to be managed well and can reduce consumptive behavior. Consumptive behavior is a wasteful behavior in consuming goods or services excessively not based on needs. Consumptive behavior is influenced by the lack of understanding of students to financial literacy and the amount of student pocket money given parents each month. The purpose of this research is to analyze (1) the influence of financial literacy on Consumer Behavior of University of Muhammadiyah Surakarta (UMS) students, (2) influence of parent's income toward Consumer Behavior of University of Muhammadiyah Surakarta (UMS) student, (3) influence of financial literacy and parent income collectively against the behavior of consumptive students of Muhammadiyah University of Surakarta (UMS). This type of research is experimental research with pretestposttest design. Based on the results of research can be explained that students who have low allowance have a low attitude of consumptive behavior as well vice versa. Students with low allowance tend to have low consumptive attitudes. In addition, students who have an understanding of financial literacy and low amount of allowance can manage finances well when compared with students who have high allowance and do not understand financial literacy.