Financial Behavior of Indonesian Moslem Students Scholarship Recipients: The Role of Locus of Control and Financial Knowledge

Abstract

In terms of financial, each individual has its own variables that determines their decision making. Based on the previous researches, individual financial behavior was impacted by internal factors of individual. Those internal factors are locus of control and financial knowledge. Those factors have role for individual in performing financially. This study aimed to determine the effect of locus of control and financial knowledge on financial behavior. This type of research was quantitative research. According to the level of clarity, this research used associative problem formulation. The sample in this study were 246 respondents. While the types of data used were primary and secondary data, with data collection techniques using a questionnaire. Data had passed the validity and reliability test before the process of data analysis. The data analysis technique used was the classic assumption test, multiple linear regression analysis, and hypothesis testing. Data passed all the requirements of classical assumption in order to proceed multiple regression analysis. The results of this study indicated that locus of control and financial knowledge simultaneously affected financial behavior. The results also showed that locus of control and financial knowledge partially affect financial behavior.