THE EFFECT OF FINANCIAL LITERACY AND ATTITUDE TOWARD MONEY TO PERSON FINANCIAL MAGAMENENT (CASE STUDY ON FACULTY ECONOMI RIAU KEPULAUAN UNIVERSITY)

Abstract

This study examines the impact of financial literacy and attitudes toward money on the personal financial management of students in the Faculty of Economics at the University of Riau Islands, Batam. Utilizing Slovin's formula, a sample of 91 respondents was selected through random sampling, and primary data were collected via a questionnaire. The results indicate that financial literacy has a significant positive effect on students' personal financial management, while attitudes toward money do not significantly influence this aspect. However, when considered together, both financial literacy and attitudes toward money significantly affect students' financial management practices. The independent variables account for 13.7% of the variation in the dependent variable, suggesting that 86.3% of the variation is influenced by other factors not examined in this study. These findings highlight the importance of enhancing financial literacy among students to improve their personal financial management skills.