UNDERSTANDING FINANCIAL MANAGEMENT BEHAVIOR: THE ROLES OF FINANCIAL LITERACY, FINANCIAL ATTITUDE, AND FINANCIAL SELF-EFFICACY

Abstract

This study examines the direct effects of financial literacy and financial attitude on financial management behavior and their indirect effects through financial self-efficacy among students in the Management Study Program, Universitas Muhammadiyah Yogyakarta. A quantitative explanatory design was employed using questionnaire data from 150 respondents selected through non-probability sampling. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4. The results indicate that financial literacy and financial attitude have positive and significant effects on financial management behavior and financial self-efficacy. Financial self-efficacy also has a positive and significant effect on financial management behavior. Furthermore, financial self-efficacy significantly mediates the relationships of financial literacy and financial attitude with financial management behavior. These findings highlight the role of financial knowledge, financial attitudes, and confidence in managing financial matters in explaining students’ financial management behavior.