• Abstract

    This study aimed to develop and validate instruments for measuring financial behavioral constructs. This study contributes to looking at the habits of university students in managing pocket money earned from parents in daily life. The sample of this study is economic education students at state universities in Indonesia. Data collection was carried out through online questionnaires. Data analysis was carried out in 2 stages, namely, EFA (Exploratory Factor Analysis) in a pilot study of 112 respondents and CFA (Confirmatory Factor Analysis) of 440 respondents in the field study. The results showed that the financial behavior constructs with three dimensions, namely, saving behavior, spending behavior, and financial planning, have met the validity and reliability requirements to be used in future research. Researchers can then review other factors that affect financial behavior so that they can find other factors that can influence it. In addition, this study can also be carried out in various countries, but sufficient data support is needed if the dimensions in this construct will be used in future research.

  • References

    1. Akben-Selcuk, E. (2015). Factors Influencing College Students’ Financial Behaviors in Turkey: Evidence from a National Survey. International Journal of Economics and Finance, 7(6), 87–94. https://doi.org/10.5539/ijef.v7n6p87
    2. Awang, Z. (2014a). A Handbook on SEM: For Acedemicians and Practitioners.
    3. Awang, Z. (2014b). A Handbook on SEM for Academicians and Practitioners. MPWS Rich Resources.
    4. Baistaman, J., Awang, Z., Afthanorhan, A., & Zulkifli Abdul Rahim, M. (2020). Developing and Validating the Measurement Model for Financial Literacy Construct Using Confirmatory Factor Analysis. Humanities & Social Sciences Reviews, 8(2), 413–422. https://doi.org/10.18510/hssr.2020.8247
    5. Butar Butar, I., Puteri, O., Pangaribuan, C., Setiono, B., & Belda, Y. (2021). A Study on Financial Decision of Indonesian Millennials. International Journal of Economics and Management Systems, 6, 104–111. http://www.iaras.org/iaras/journals/ijems
    6. Dew, J., & Xiao, J. J. (2011). The financial management behavior scale: Development and validation. Journal of Financial Counseling and Planning, 22(1), 43–59.
    7. Herawati, N. T., Candiasa, I. M., Yadnyana, I. K., & Suharsono, N. (2018). Factors That Influence Financial Behavior Among Accounting Students in Bali. International Journal of Business Administration, 9(3), 30. https://doi.org/10.5430/ijba.v9n3p30
    8. Jian, O. Z., Yin, K. Y., & Awang, M. (2020). Developing And Validating the Measurement Model for Employee Engagement Construct Using Confirmatory Factor Analysis. International Journal of Academic Research in Business and Social Sciences, 10(8), 924–941. https://doi.org/10.6007/ijarbss/v10-i8/7662
    9. Kartawinata, B. R., Wijayangka, C., Akbar, A., & Hendiarto, R. S. (2021). The influence of lifestyle and financial behavior on personal financial management for the millennia generation (Study on college students in Bandung city, Indonesia). Proceedings of the International Conference on Industrial Engineering and Operations Management, 2957–2965.
    10. Krejcie, R. V., & Morgan, D. W. (2018). Determining Sample Siza For Research Activities. Advanced Public and Community Health Nursing Practice: Population Assessment, Program Planning and Evaluation, Second Edition, 38, 127–153. https://doi.org/10.1891/9780826138446.0006
    11. Kustono, A. S. (2021). Behavioral Factors and Successful Implementation of Mandatory Management Information Systems in Indonesia. Journal of Behavioral Science, 16(3), 84–98.
    12. Meitriana, M. A., Suwena, I. K. R., & Indrayani, L. (2019). The Influence of Fraud Triangle and Theory of Planned Behavior on Students Academic Fraud in Bali. 69(Teams 2018), 136–141. https://doi.org/10.2991/teams-18.2019.24
    13. Nababan, D., & Sadalia, I. (2012). Analisis Personal Financial Liteacy Dan Financial Behavior Mahasiswa Strata I Fakultas Ekonomi Universitas Sumatera Utara (Personal Financial literacy Analysis And The Financial Behavior Of Undergraduate Students Of The University Of North Sumatra’s Econo. Media Informasi Manajemen, 1, 1–16.
    14. Nofsinger, J. R. (2001). Investment Madness: How Psychology Affects Your Investing and What to Do About It. In Journal of Chemical Information and Modeling.
    15. Ramadhan, A. Y., & Asandimitra, N. (2019). Determinants of Financial Management Behavior of Millennial Generation in Surabaya. Jurnal Minds: Manajemen Ide Dan Inspirasi, 6(2), 129. https://doi.org/10.24252/minds.v6i2.9506
    16. Rey-Ares, L., Fernández-López, S., Castro-González, S., & Rodeiro-Pazos, D. (2021). Does self-control constitute a driver of millennials’ financial behaviors and attitudes? Journal of Behavioral and Experimental Economics , 93. https://doi.org/10.1016/j.socec.2021.101702
    17. Sahid, S., & Habidin, N. F. (2018). Exploring measurement model for entrepreneurial marketing construct: A marketing for SME’s. International Journal of Supply Chain Management, 7(6), 674–683.
    18. Sam, P. A., Frimpong, S., & Kendie, S. (2022). Personal finance behaviour: a reasoned action approach. International Journal of Social Economics. https://doi.org/10.1108/IJSE-02-2021-0097
    19. Sari, E. Y. N., & Anam, A. K. (2021). Sikap Keuangan, Kontrol Perilaku, Efikasi Diri dan Perilaku Keuangan. Organum: Jurnal Saintifik Manajemen Dan Akuntansi, 4(1), 28–39. https://doi.org/10.35138/organum.v4i1.134
    20. Sekaran, U., & Bougie, R. (2011). Research Methods for Business: A Skill-Building Approach, 6th Edition.
    21. Suryanto. (2017). Pola Perilaku Keuangan Mahasiswa Di Perguruan Tinggi. Jurnal Ilmu Politik Dan Komunikasi, VII(1), 11–20.
    22. Suyanto, Setiawan, D., Rahmawati, & Winarna, J. (2021). Effects of Indonesian Students’ Financial Literacy on Financial Behavior. Proceedings of the Sixth Padang International Conference On Economics Education, Economics, Business and Management, Accounting and Entrepreneurship (PICEEBA 2020), 179(Piceeba 2020), 553–558. https://doi.org/10.2991/aebmr.k.210616.086
    23. Van Raaij, W. F. (2012). Consumer financial behavior. In Foundations and Trends in Marketing (Vol. 7, Issue 4). https://doi.org/10.1561/1700000039
    24. Wong, S. K. Y., Misiran, M., Md Yusof, Z., & Supadi, S. S. (2022). Impact of Financial Literacy Level on Financial Behavior among Higher Education Students: A Case Study in KDA University. EDUCATUM Journal of Social Sciences, 8(1), 43.
    25. Wood, P. (2008). Confirmatory Factor Analysis for Applied Research. In The American Statistician (Vol. 62, Issue 1). https://doi.org/10.1198/tas.2008.s98
    26. Yahaya, R., Zainol, Z., Abidin, J. H. O. @ Z., & Ismail, R. (2019). The Effect of Financial Knowledge and Financial Attitudes on Financial Behavior among University Students. International Journal of Academic Research in Business and Social Sciences, 9(8), 22–32. https://doi.org/10.6007/ijarbss/v9-i8/6205

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Copyright (c) 2024 Malque Publishing

How to cite

Nuris, D. M., Sahid, S., & Hussin, M. (2023). The validation of financial behavior instruments for university students: An exploratory and confirmatory factor analysis approach. Multidisciplinary Reviews, 7(2), 2024031. https://doi.org/10.31893/multirev.2024031
  • Article viewed - 289
  • PDF downloaded - 178