Consumptive Behavior: Are Financial Literacy, Electronic Money, Lifestyle, and Self-Control Necessary?

Abstract

Aims: Consumptive behavior has become familiar to students because of the support of an increasingly modern era and the ease of buying needs or wants.   This study aims to determine whether financial Literacy, electronic Money, Lifestyle, and self-control significantly affect consumer behavior, especially among students. Study Design:  Active FEB students in DKI Jakarta Province, Central Java, Special Region of Yogyakarta Place and Duration of Study: at Universitas Negeri Jakarta, Universitas Muhammadiyah Purwokerto, Universitas Wijayakusuma Purwokerto, Universitas Diponegoro, Universitas Tidar, Universitas Gajah Mada and Universitas UPN Yogyakarta, which have a total of 18.255 students. The sample for this study is 160 respondents that was determined using the Slovin technique. Methodology: In this research, the methods used to analyze data are using a Partial Least Square (PLS) based structural equation model (SEM). By using SmartPLS 3.0, each hypothesis will be tested to understand the relationships between variables.   To test Validity and reliability, the research uses an outer model. Hypothesis testing was done using inner models. Results: Financial Literacy had no significant effect on consumptive behavior. Electronic 0money has no significant impact on consumptive behavior. Lifestyle significantly affects consumptive behavior with Original Sample 0,449. Self-control significantly affects consumptive behavior with Original  Sample 0,187. Conclusion: Financial Literacy and electronic Money do not ultimately influence students' consumptive behavior; this could happen because students do not use their financial understanding in everyday life, and the ease of electronic money does not affect students' consumptive behavior. At the same time, Lifestyle and self-control influence student consumption behavior. Uncontrolled Lifestyle and self-control make students consumptive in everyday life.