The Determinants of Personal Financial Planning Among Undergraduate Students in Universitas Islam Indonesia

Abstract

Personal financial planning is crucial for young adults, particularly undergraduate students, as it lays the foundation for their financial independence and future stability. This research aims to determine personal financial planning among Moslem undergraduate students at Universitas Islam Indonesia, focusing on the role of financial knowledge in shaping financial attitudes, financial technology, and lifestyle. The research combines qualitative insights from students' perceptions and quantitative analysis using Partial Least Squares Structural Equation Modeling (PLS-SEM) via SmartPLS 4. Data were gathered from 100 respondents across all faculties using a 10-point Likert scale questionnaire. The results reveal that from the three observed variables, which are financial attitude, financial technology, and lifestyle have a significant positive influence on personal financial planning and plays as the most important role in personal financial planning. Financial knowledge itself positively and significantly influences personal financial planning and serves as a mediating variable, enhancing the effects of financial attitude, financial technology, and lifestyle. It means that the importance of financial knowledge as a critical enabler of effective personal financial planning emphasizing the interplay of financial attitudes, technology, and lifestyle among Moslem undergraduate students.