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The Influence of Financial Literature, Financial Technology,

and Income on Financial Behavior
Amelia Apriyanti 1); Rifka Ramadita 2)

1)
[email protected], Manajemen S1, Economy and Business, Mercubuana University, Indonesia
2)
[email protected], Manajemen S1, Economy and Business, Mercubuana University, Indonesia

Article Informatin: Abstract

Keywords: The purpose of this study was to analyze the effect of Financial Literacy,
Financial Literacy
Financial Technology Financial Technology, and Income on Financial Behavior. The
Income population of this research is Management Students at Mercu Buana
Financial Behavior
University located in West Jakarta. The sample was selected using the
convenience sampling method as many as 48 respondents. The data
Article History: processing technique uses structural equation modeling assisted by the
Received : July 10, 2022
Revision : July 20, 2022 SmartPLS program. 3.2.7. The results of this study indicate that Financial
Received : July 25, 2022 Literacy and Income have a positive and significant effect on Financial
Behavior (Financial Behavior), while Financial Technology is negative
Article Doi:
http://doi.org/10.22441/indikator.v6i3.14235 and does not significantly affect Financial Behavior (Financial
Behavior).

INTRODUCTION
Financial behavior is an issue or topic that is being hotly discussed by many people,
especially at this time of the development of sophisticated technology. However, this irrational
behavior can be interpreted that individuals cannot carry out financial planning and financial
control properly. Good financial indicators can be seen from individual behavior in managing
cash outflows and inflows, credit problems, savings and investments. A person only needs a
short period of time for occasional consumption or doing impulsive shopping without allocating
income for long-term needs (investment) which causes financial problems due to irresponsible
financial behavior.
Organization for Economic Co-operation and Development (2016) defines financial
literacy as and understanding of financial concepts and risks, the following skills, motivation,
and confidence to apply this knowledge and understanding in order to make effective financial
decisions, improve financial well-being (well-being). financial) individuals and society, and
participate in the economic field.
Financial literacy is an important element of economics and finance, both for individuals
and for the global economy. Widespread developments in financial markets have contributed
to raising awareness about the level of financial literacy of the world community. Moreover,
the recent financial crisis has shown that wrong financial decisions, often caused by a lack of
financial literacy, can have tremendous negative consequences.
The survey results from the Financial Services Authority (OJK) noted that the financial
literacy index reached 38.03 percent. That is, out of 100 people around 38 people have adequate
knowledge, skills, and beliefs about financial products and services (well-literate). This means
that the Indonesian people do not yet have sufficient knowledge on how to optimize the use of
money for productive activities. The public also does not understand well the various financial

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products and services offered by formal financial services institutions and are worried that they
will be more attracted to consumerism, even other investments that are dangerous (bodong).
Students in the era of the educated young generation will have an influence in creating a
more stable country's economy. Financial system stability is expected to be achieved efficiently
and effectively so that it can withstand internal and external vulnerabilities. Therefore, all
elements, including financial institutions, financial markets, financial infrastructure, as well as
non-financial companies and every individual, especially millennials can interact with each
other in funding and providing financing for a healthy economy.
The development of technology and information at this time is growing rapidly. Currently,
there are quite a number of users of communication and information technology that have had
an impact on changes in people's lifestyles, one of which is in terms of finance (finance).
Technological developments that have had an impact on digitalization have been accepted by
all sectors, especially in the financial sector. The emergence of digitalization has given birth to
a technology that makes it easier for the public in terms of finance which is usually used by
students or the public in making digital payment systems which are commonly referred to as
financial technology or known as Fintech.
Reported from the news source sindo news Fintech in Indonesia in its development,
especially during this pandemic, looks positive. Statistical data from the Financial Services
Authority (OJK) states that the total disbursement to fintech grew 113.05% Rp128.7 trillion
until the third quarter of 2020. In addition, the accumulation of loans also grew by 103.46% or
also grew by 29.21 million. Thus, public interest in doing credit during the pandemic through
fintech in 2021 will grow. It can be key that financial technology can greatly influence a
person's financial behavior. Moreover, plus there are several fintechs that offer credit, it will
make someone tend to make transactions digitally.
Millennial generation students like this have quite different preferences compared to the
previous generation. With more varied fields of work and competencies, these young people,
as reported by BigAlpha, have quite an astonishing income.The amount of income earned in
the productive age may be very adequate if it is determined by considering people from the
previous generation. The question is, where do these millennials get their money?
Lifestyle is the key. A survey shows that more than three-quarters of young people want
to own the same clothes, cars and tech equipment as their friends. Socio-economy and lifestyle
have a big role in showing their daily existence. Saving is done not to buy assets, but the
preference is to fulfill a lifestyle, such as hanging out, drinking coffee, shopping, and luxury
vacations. Meanwhile, there are still young people who do not do financial planning like the
previous generation.
For each level of income or income, proper financial management and supported by good
financial knowledge are expected to improve the status of social life. Regardless of the increase
in a person's income level, without proper financial management, financial security will
definitely be difficult to achieve. Low financial knowledge can lead to wrong financial
planning.
Based on the research gap, there are factors that can influence financial management
behavior, including financial literacy (Wagner, 2014). Financial literacy is an understanding
related to knowledge and attitudes in matters relating to finance (Putri & Rahyuda, 2017).
Wagner (2014) states that the optimal level of understanding of individuals related to finance
can help individuals to carry out better financial management. This is supported by Sholeh
(2019) showing the influence of the financial literacy variable. While Yap et al. (2016),
Zahriyan (2016) stated that a person's low level of financial literacy will not affect his financial
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behavior. Based on previous research using the same variables by Nyoman Trisna Herawati
(2015, Pipit Rosita Andarsari, Mega Noerman Ningtyas (2019), Ahmad Humaidi1 Muhammad
Khoirudin, Ainun Riska Adinda & Achmad Kautsar (2020) , Ari Susanti , Ismunawan, Pardi,
Elia Ardyan (2017), Nurul Safura Azizah (2020), Delyana R. Pulungan (2017), Ari Susanti ,
Ismunawan, Pardi , Elia Ardyan (2017), states that financial literacy is significantly positive on
financial behavior. Meanwhile, the research conducted by Nisa Ihlasul Amaiyah and Hadi
Ismanto (2020), Alfrin Erman Sampoerno and Nadia Asandimitra (2021), explained that from
the results of their research that financial literacy had no significant or insignificant effect.
Stating that Financial Literacy is significantly positive on financial behavior. Meanwhile, the
research conducted by Nisa Ihlasul Amaiyah and Hadi Ismanto (2020), Alfrin Erman
Sampoerno and Nadia Asandimitra (2021), explained that from the results of their research that
financial literacy had no significant or insignificant effect. Stating that Financial Literacy is
significantly positive on financial behavior. Meanwhile, the research conducted by Nisa Ihlasul
Amaiyah and Hadi Ismanto (2020), Alfrin Erman Sampoerno and Nadia Asandimitra (2021),
explained that from the results of their research that financial literacy had no significant or
insignificant effect.
The second factor that can influence financial behavior is financial technology
(FINTECH). The Effect of Financial Technology on Financial Satisfaction Through Financial
Behavior The variable use of financial technology on financial satisfaction through financial
behavior shows insignificant results with a CR value of 1.395 (less than 1.96) and a significance
level (p-value) of 0.163 (greater than 0.05). Thus, the use of financial technology has no effect
on financial satisfaction through financial behavior as an intervening variable. Mercubuana
students in DKI Jakarta can access account information at almost no cost and can behave
comfortably in financial transactions using financial technology. This clearly affects the
financial behavior of students. But not only positive financial behavior, but also negative
financial behavior, one of which is consumption behavior. the use of financial technology
makes it easier for everyone in online shopping transactions that are booming lately.
Satisfaction with spending needs is met, but financial satisfaction with future availability of
money makes everyone worry about their financial condition. The results of this study are in
accordance with (Widiastuti & Wahyudi, 2021) who found that Financial Technology has no
effect on financial behavior, meaning that existing Fintech promo applications (such as go-pay,
ovo, and others) have no effect on financial behavior. However, in a previous study by
Khoirudin et al (2020) obtained the results that Financial Technology had a significant effect
on Financial Behavior. The results of this study are in accordance with (Widiastuti & Wahyudi,
2021) who found that Financial Technology has no effect on financial behavior, meaning that
existing Fintech promo applications (such as go-pay, ovo, and others) have no effect on
financial behavior. However, previous research by Khoirudin et al (2020) and Erlangga &
Kresnawati (2020) found that Financial Technology had a significant effect on Financial
Behavior. This means that existing fintech promo applications (such as go-pay, ovo, etc.) have
no effect on financial behavior. However, previous research by Khoirudin et al (2020) and
Erlangga & Kresnawati (2020) found that Financial Technology had a significant effect on
Financial Behavior. This means that existing fintech promo applications (such as go-pay, ovo,
etc.) have no effect on financial behavior. However, previous research by Khoirudin et al (2020)
and Erlangga & Kresnawati (2020) found that Financial Technology had a significant effect on
Financial Behavior.

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Income is an individual's income that is earned through profits and has not been taxed,
referred to as gross profit and the calculation is also adjusted by the individual to determine
income (Ida & Dwinta, 2010). Purwidianti (2013) states that the higher a person's income level,
the higher his financial responsibility for managing finances. This is supported by Fatimah &
Susanti (2018) the influence of income variables on FMB. Meanwhile, Ida & Dwinta (2010)
stated that the amount of a person's income does not affect financial management behavior.
Previous research conducted by Wida Purwidianti and Rina Mudjiyanti (2016), Nisa Ihlasul
Amaiyah and Hadi Ismanto (2020), Robin Alexander, Ary Satria Pamungkas (2018), Naila Al
Kholilah Rr. Iramani (2013), Alfrin Erman Sampoerno and Nadia Asandimitra (2021), stated
that income had a significant positive effect on financial behavior. Meanwhile, research
conducted by Robin Alexander, Ary Satria Pamungkas (2018), Alfrin Erman Sampoerno and
Nadia Asandimitra (2021), Tirani Rahma Brilianti (2019), Robin Alexander, Ary Satria
Pamungkas (2019), explains that from the results of their research that income is not significant
or insignificant effect.

LITERATURE REVIEW AND HYPOTHESES

Financial Literacy
A person's competence to manage finances is a skill and ability that is formed to utilize
resources in an effort to achieve a goal. An inseparable dimension of financial literacy is one's
financial knowledge (Huston, 2010). Several other opinions about the indicators that affect
financial literacy are budgeting, savings, credit and investment (Remund, 2010) conclude that
the four indicators that most influence financial literacy. Matters related to financial literacy are
how to manage income, manage finances, investments, credit or credit and manage savings.
Financial literacy does not only involve knowledge and ability to handle financial problems,
but also non-cognitive attributes (PISA, 2012). Attitude is not important in financial literacy.
Financial attitude is defined as a person's psychological related to personal financial problems
(Gutter, 2008). Attitudes such as finance are open to information, assess the importance of
managing finances, not impulsive in consumption, orientation to the future, and responsibility.
Chen and Volpe (1998) define literacy
Finance as the ability to manage finances, according to Lusardi & Mitchell (2007) financial
literacy can be interpreted as financial knowledge, with the aim of achieving prosperity. This
can be interpreted to mean that preparations need to be made to face globalization (prepare
yourself), and more specifically, globalization in the financial sector.

Financial Technology
Financial Technology (Fintech) is the result of a combination of financial services and
technology that ultimately changes the business model from conventional to moderate, which
first has to meet face-to-face and bring in a number, can now be done remotely. transactions by
making payments that can be made in seconds (www.bi.go.id). According to Bank Indonesia
regulations, fintech is a technology technology that produces new products, technology
services, and models and can have an impact on monetary security, or the efficiency of financial
systems, security, and payment systems (PBI, 2017: 3). The purpose of Financial Technology
(Fintech) is for Bank Indonesia to regulate the application of financial technology to encourage
innovation in finance by applying the principles of consumer protection and risk management

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as well as prudence in order to maintain security, the financial sector, and the payment system.
efficient, smooth, safe and reliable (PBI, 2017: 4).

Income
According to Barker (2010:154), "Income is an increase in equity, excluding contributions
from equity participants, capital maintenance adjustments and other reserve changes."
Meanwhile, according to Garman & Forgue (2000: 36-37), "Income or income is not only
obtained from salary or wages but there are many types of income that individuals must also
include in income such as bonuses and commissions, child support and allowances, public
assistance, benefits, etc. social security, pensions and profit-sharing income, scholarships and
grants, interest and dividends received (from savings accounts, investments, bonds, or loans to
others), income from the sale of assets, and other income (gifts, tax money, rent, royalties).
Based on some of the income, it can be said that income is an increase or increase in all
distributive transactions received by an individual, a family or a household during a certain
period. And transactions received are only obtained from salaries or wages but from bonuses &
commissions, pensions, social security, child benefits, investment returns from interest and
dividends received, income from asset sales and other income.

Financial Behavior
Financial behavior (financial behavior) can be defined as a person's behavior in matters
relating to financial management in everyday life (Xiao, 2008; Risman et al., 2021)). In general,
his behavior includes behavior related to income, expenses, credit, savings, and protection.
Thus, financial behavior relates to the management of income and the use of that income to
meet the needs of today's consumption and business for the future.
A person's financial management behavior can be seen from four things (Dew & Xiao, 2011),
namely:
1. Consumption in the household is expenditure on various goods and services. Financial
behavior can be seen from how individuals carry out daily consumption activities,
2. Cash flow management (cash flow management) is the main indicator of financial health
which is a measure of the ability to pay all costs owned. Good cash flow management is an
action that can balance between income and expenses. Cash flow management can be seen
from whether in paying bills on time, paying attention to records or proof of payments,
making financial budgets and future financial planning.
3. Savings and Investments (savings and investments) are part of income that is not consumed
in a certain period. From this unused income, it is saved for future use in the event of an
unforeseen event. Investment is an action in allocating or investing existing resources with
the aim of getting benefits in the future and
4. Debt management (credit management) is a person's ability to take advantage of debt so as
not to produce losses that will result in destruction, in other words debt can be used to
increase.

HYPOTHESIS
Relationship between Financial Literacy and Financial Behavior
Mendes-da-silva (2016) in his research states that the term financial literacy has often been
used as a synonym for financial education or financial knowledge. However, this construction
is actually conceptually different because financial literacy has a deeper meaning than financial
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education. Thus, using the two terms interchangeably to mean the same thing can lead to
misunderstandings. Financial literacy has two dimensions, namely understanding which
represents personal financial knowledge from financial education and use which refers to the
management of personal financial knowledge. In this context, a person may have financial
knowledge, but to be considered literate, they must have the ability and confidence to
implement decisions.
Referring to OJK, there are four levels of financial literacy classification, namely: 1) well
literate—more than 80%, have understanding and trust in financial service institutions and
financial products and services, including products and features related to financial services,
benefits and risks, and rights and obligations, as well as having skills in using financial products
and services; 2) have sufficient literacy—60-80%, have understanding and trust in financial
service institutions and financial products and services, including features related to financial
products and services, benefits and risks, as well as rights and obligations; 3) lack of literacy—
30%-60%, only have an understanding of financial service institutions, financial products and
services; and 4) illiterate—less than 30%,
This study uses a financial literacy index based on DEFINIT-SEADI-OJK (2013) which
refers to the research of Lusardi and Mitchell (2011). There are two indicators, namely basic
financial literacy and advanced financial literacy. However, to match the research subjects,
most of whom do not really understand the capital market, the indicators used are only basic
financial literacy. This basic financial literacy consists of 11 questions which include:
1) Identity when opening an account; 2) Minimum deposit when opening an account; 3)
Minimum balance in the account; 4) Savings guarantee; 5) Simple interest; 6) Compound
interest; 7) Loan interest; 8) Discounts; 9) Inflation; 10) Temporary value for money; 11) The
illusion of money.
This study uses dummy variables (1 and 0) if the respondent's answer is correct, it will be
coded 1 and 0 if wrong.
Behavioral finance is associated with a person's responsibilities regarding the way they
manage money. Effective financial management includes budgeting, assessing the importance
of purchases and prioritizing needs and so on. The budgeting process is carried out to ensure
that individuals can manage their financial obligations in a timely manner using the income
they receive (Ida & Dwinta, 2010). This financial behavior variable was measured using 8
modified questions from the OECD-INFE (International Network on Financial Education),
namely: 1) Be careful in buying goods; 2) Focus on using money; 3) Save; 4) Pay bills on time;
5) Ready to take the risk of an investment; 6) Make a budget; 7) Make a long-term financial
plan; 8) Controlling expenses.
Empirical evidence shows that financial literacy has a positive effect on financial behavior.
Individuals with the knowledge and ability to manage their finances well will demonstrate good
financial behavior such as investing, saving, and using credit cards. An empirical study by
Lusardi & Tufano (2015), and Rahman & Risman (2021). shows that people with low financial
literacy are more likely to have problems with money.
H1: Financial literacy has a positive effect on financial behavior.

Relationship between Financial Technology and Financial Behavior

When linking financial technology with financial behavior, financial satisfaction can be
categorized into two main: functions, namely technology that assists transactions and
technology that assists planning. Transaction-based technologies include ATM cards, credit

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cards, telephone & internet banking. ATM cards can be used to access bank accounts at
electronic terminals without the hassle of looking for a local bank, especially when traveling.
In general, many people use credit cards, mobile banking, and internet banking to compete in
today's online purchase transactions. Credit cards create online transactions so the user usually
has several transaction alerts linked to the smartphone to unify. You can also use official debit
to set up automatic electronic payments for credit. Using financial technology, users can access
account information almost at no cost and users can behave comfortably in financial trance
actions (Lee & Lee, 2001).
New technologies derived from automation have achieved extraordinary financial results
in behavioral finance. Thus, the use of financial technology can influence financial behavior.
This is in line with research conducted by Bi, (2015), Hutabarat (2018), and Felicia (2018).
New technologies derived from automation have achieved extraordinary financial results in
behavioral finance. Thus, the use of financial technology can influence financial behavior. This
is in line with research conducted by Bi, (2015), Hutabarat (2018), and Felicia (2018). New
technologies derived from automation have achieved extraordinary financial results in
behavioral finance. Thus, the use of financial technology can influence financial behavior. This
is in line with research conducted by Bi, (2015), Hutabarat (2018), and Felicia (2018).
H2: Financial Technology has a positive effect on Financial Behavior

Relationship between Income and Financial Behavior

A person who has a lower income is less likely to save (Aizcorbe et al, 2003). In addition,
there is a greater possibility that individuals with available sources of funds (income) will
exhibit more responsible financial management behavior, considering that the available funds
(income) provide an opportunity to act responsibly (Ida and Dwinta, 2010). Working with
widely available resources will show more responsible financial management behavior, given
that available funds provide an opportunity to act responsibly (Perry & Morris, 2005). Hilgert,
Hogarth, and Beverly (2003) reported that according to the Survey of Consumer Finances in
2011,
In addition, Aizcorbe, Kennickell, and Moore (2003) found that families with low incomes
tend to report saving behavior. Arifin (2017) finds that there is no influence of Income on
Financial Behavior. Income has no relationship to financial behavior, which means that
individual income, whether high or low, does not affect individual behavior. Individuals with
high income levels are not always able to manage their expenses in a good way, which is caused
by irresponsible financial behavior and tends to think short. Perry and Morris (2005) state that
income has a positive relationship to financial behavior.
H3 : Income has a positive effect on financial behavior.

Based on the relationship between the variables above, the research model is as follows:

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Figure 2. Research Model

Financial literacy
H1

H2 FINANCE
Financial Technology
BEHAVIOR

H3 Income H3

H1: Financial literacy has a positive effect on financial behavior.

H2: Financial Technology has a positive effect on Financial Behavior
H3 : Income has a positive effect on financial behavior.

METHODOLOGY
The design of this study is a descriptive study with a cross sectional design method with
the population being all students at Mercu Buana University located in DKI Jakarta with a
sample of 61 respondents. The sampling method in this study is a non-probability sampling
method with a convenience sampling technique, which means that not all students in DKI
Jakarta have the same opportunity to be selected as samples. The sample used in this study had
predetermined criteria that this study selected 48 respondents who fit the criteria. The criteria
are Management Students at Mercu Buana University located in Jakarta. Based on the data that
has been collected, it is known that as many as 41 people (67.2%) are female and the remaining
20 people (32, 8%) are male. A total of 12 people (20%) aged 18-20 years, 47 people (78.3%)
aged 21-30 years, and the remaining 1 person (1.7%) aged 31-40 years.
The respondents in this study were the majority of students majoring in Management as
many as 48 people (78.4%), the rest were students majoring in Accounting as many as 13 people
(21.3%). Several instruments were adapted from previous research to measure research
variables as shown in Table 1 using a five-point Likert Scale with 1 indicating "strongly
disagree" and 5 indicating "strongly agree" for the variables of Financial Literacy, Financial
Technology, Income and Financial Behavior. while Income is measured using the Nominal
Scale as a dummy variable. This income variable is coded 1 for an income of IDR 500,000 –
IDR. 1.000.000 code 2 Rp. 1,000,000 – 1,500,000, code 3 Rp.1,500,000 – Rp. 2,000,000 and
code 4 > Rp. 2,500,000. The instrument has conducted a validity analysis with the results of
convergent validity analysis, namely the loading factor value must be greater than 0.7 for
confirmatory research and the loading factor value between 0.6 - 0.7 for exploratory research
is still acceptable. However, for research in the early stages of developing a measurement scale,
the loading factor value of 0.5 – 0.6 is still considered sufficient (Chin, 1998). and the AVE
value of all variables is greater than 0.5 (Henseler et al., 2009). Then for the discriminant
validity analysis, the cross loading value of each variable indicator is greater than the correlation
between other variables and the Fornell-Larcker analysis shows the AVE square root value is
greater than the correlation between other variables so that all instruments are declared valid
(Hair et al., 2011). Meanwhile, the reliability analysis is based on the value of Cronbach's alpha

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and composite reliability, each of which shows a value of more than 0.6 so that all indicators in
the study are reliable (Hair et al, 2011). The level of significance used in this study is 5%.
Data collection in this study was carried out by distributing questionnaires manually and
online using google-form and analysis using structure equation modeling (SEM) with the help
of the SmartPLS 3.2.7 program.
Table 1. Variables of Measurement Data
Number of
Variable Indicators scale Source
Independent Variable
1. Financial Literacy 9 Likert Perry & Morris (2005)
2. Financial Technology 8 Likert Perry & Morris (2005)
3. Income 8 Likert Perry & Morris (2005)
Related Variables
Financial Behavior 8 Likert Xiao & Dew (2011)

1. Validity test
a. Convergent Validity
Table 2. Analysis Results Avarage Variance Extracted (AVE)
Variable Avarage Variance Extracted (AVE)
Financial Literacy 0.338
Financial Technology 0.649
Income 0.423
Financial Behavior 0.555
Based on Table 2, it can be seen that the AVE value contains variables that have a value
below 0.5 and have an AVE value above 0.5, where there are 2 variables that meet the
convergent validity criteria as measured by the AVE value. This shows that there are 2 variables
that do not meet the AVE value and there are 2 variables that have met the convergent validity
criteria.
Table 3. Results of Loading Factor
Financial Financial
Indicator Behavior Financial Literacy Technology Income
LT1 0.531
LT2 0.619
LT3 0.53
LT4 0.574
LT5 0.628
LT6 0.679
LT7 0.605
LT8 0.718
LT9 0.690
FT1 0.647
FT2 0.776
FT3 0.783

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FT4 0.797
FT5 0.802
FT6 0.844
FT7 0.861
FT8 0.907
WW1 0.700
WW2 0.500
WW3 0.784
PD4 0.746
PD5 0.744
PD6 0.556
WW7 0.555
WW8 0.551
PK1 0.764
PK2 0.811
PK3 0.719
PK4 0.726
PK5 0.757
PK6 0.719
PK7 0.788
PK8 0.644
According to Henseler et al (2009) an indicator can be removed from the research model if the
indicator has a loading factor value below 0.4 and the indicator is declared good if it has an
outer loading value.
Figure 2. Convergent Validity Analysis Results

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b. Discriminant Validity
Discriminant Validity measured from the cross loading value of each indicator and the
Fornell-Larcker criteria. The following table shows the results of the cross loading values of
each indicator.
Table 4. Results of Cross Loadings . Value
Financial Financial
Indicator Behavior Financial Literacy Technology Income
LT1 0.389 0.531 0.409 0.601
LT2 0.280 0.619 0.421 0.377
LT3 0.378 0.530 0.437 0.463
LT4 0.375 0.574 0.389 0.318
LT5 0.320 0.628 0.442 0.449
LT6 0.590 0.679 0.551 0.436
LT7 0.407 0.605 0.228 0.456
LT8 0.557 0.718 0.540 0.487
LT9 0.393 0.690 0.425 0.521
FT1 0.375 0.367 0.647 0.418
FT2 0.401 0.497 0.797 0.452
FT3 0.376 0.512 0.861 0.446
FT4 0.363 0.458 0.844 0.363
FT5 0.376 0.604 0.766 0.565
FT6 0.432 0.689 0.783 0.553
FT7 0.569 0.649 0.907 0.548
FT8 0.341 0.480 0.802 0.462
WW1 0.393 0.439 0.421 0.700
WW2 0.210 0.383 0.460 0.500
WW3 0.735 0.693 0.390 0.784
PD4 0.471 0.512 0.305 0.746
PD5 0.356 0.497 0.341 0.744
PD6 0.394 0.294 0.337 0.556
WW7 0.336 0.524 0.595 0.555
WW8 0.383 0.438 0.415 0.551
PK1 0.764 0.495 0.329 0.464
PK2 0.811 0.568 0.462 0.520
PK3 0.719 0.534 0.232 0.442
PK4 0.726 0.539 0.200 0.435
PK5 0.757 0.478 0.417 0.436
PK6 0.719 0.570 0.329 0.663
PK7 0.788 0.596 0.464 0.600
PK8 0.664 0.552 0.607 0.469

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Based on Table 4, it can be seen that the value of the loading factor of each indicator
of each variable is greater than the value of the cross loadings of other variables. This shows
that these indicators have met the criteria for discriminant validity as measured by the cross
loading value. The following is Table 5 the results of the Fornell-Lercker value analysis of each
variable.

Table 5. Results of Fornell-Lercker Analysis

Financial Financial Financial
Variable Behavior Literacy Technology Income
Financial
Behavior 0.745 0.732 0.514 0.686
Financial Literacy 0.623 0.673
Financial
Technology 0.805
Income 0.596 0.749 0.651
Based on Table 4, it can be seen that the AVE square root value of each variable is
greater than the correlation between variables so that it meets the Fornell-Larcker criteria.
This shows that these variables meet discriminant validity.
2. Reliability Test
Reliability analysis was carried out by taking into account the Cronbach's Alpha and
Composite Reliability values of the variables in the study which are shown in Table 6 below.

Table 6. Reliability Analysis Results

Variable Cronbach's Alpha Composite Reliability
Financial Behavior 0.885 0.909
Financial Literacy 0.805 0.849
Financial Technology 0.921 0.936
Income 0.806 0.851

Based on the results of the analysis shown in the table above, it can be concluded that
all of Cronbach's Alpha and Composite Reliability each variable has a value of 0.6 (Hair et al,
2011), it can be concluded that the variables used in this study reliable.

3. Hypothesis Testing Results

The results of the data analysis can briefly be explained as shown in Table 7, as follows:
Table 7. Hypothesis Testing Results
Variable Coefficient T-Statistics p-values
H Financial Literacy Behavior
1 Finance 0.503 3.496 0.001
H Financial Technology ->
2 Financial Behavior -0.014 0.092 0.927
H Income -> Financial
3 Behavior 0.318 2.052 0.041

Based on Table 7 above, it can be concluded that the Financial Literacy variable has a
positive and significant influence on Financial Behavior as evidenced by the t-statistics value
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of 3.496 and the coefficient value of 0.503. Meanwhile, for the results of testing the second
hypothesis, Financial Technology has a negative and insignificant effect on Financial Behavior
with a t-statistics value of 0.092 and a Coefficient value of (-0.014); while income has a positive
and significant influence on financial behavior with a t-statistics value of 2.052 and a
coefficient of 0.318.

Discussion & Conclusion

1. The Effect of Financial Literacy on Financial Behavior
The results of this study indicate that Financial Literacy has a positive and significant
effect on financial behavior, as shown in table 7 above where the t-statistic value is greater than
1.96 which means that H1 is not rejected. This positive influence indicates that the greater a
person's financial literacy, the better a person's financial behavior will be. The results show that
respondents have a high level of financial literacy because the respondents work as students,
where students must have a literacy level and understand finance so that students will have the
skills, motivation, and confidence to apply their knowledge and understanding in order to make
financial decisions. effective way to improve financial well-being and participate in the
economy.
The results of this study are in accordance with previous research by Financial Literacy as
this can be implemented in its ability to control greater finances. Previous research conducted
byNyoman Trisna Herawati (2015, Pipit Rosita Andarsari, Mega Noerman Ningtyas (2019),
Ahmad Humaidi1 Muhammad Khoirudin, Ainun Riska Adinda & Achmad Kautsar (2020) ),
Ari Susanti , Ismunawan, Pardi, Elia Ardyan (2017), Nurul Safura Azizah ( 2020), Delyana R.
Pulungan (2017), Ari Susanti, Ismunawan, Pardi, Elia Ardyan (2017), stated that financial
literacy was significantly positive on financial behavior.

2. The Influence of Financial Technology on Financial Behavior

The results of this study indicate that it has a negative and insignificant effect on financial
behavior, as shown in table 7 above where the t-statistic value is smaller than 1.96 which means
that H2 is not rejected. This negative effect shows the minus coefficient. It can be said that a
person's high or low Financial Technology cannot affect a person's financial behavior. This
phenomenon can be explained that someone who has knowledge of Financial Technology
(Fintech) is not based on one's financial behavior.
This is in line with research (Widiastuti & Wahyudi, 2021) which results that Financial
Technology has no effect on financial behavior, meaning that existing Fintech promo
applications (such as go-pay, ovo, and others) have no effect on financial behavior. Meanwhile,
in the study (Widiastuti & Wahyudi, 2021) which found that Financial Technology had no
significant effect on Financial Behavior, it means that existing Fintech promo applications (such
as go-pay, ovo, and others) have no effect on financial behavior.

3. Influence of Income on Financial Behavior

The results of this study indicate that positive income has a significant effect on financial
behavior, as shown in table 7 above where the t-statistic value is greater than 1.96 which means
that income will affect a person's financial behavior, either high or low, does not affect
individual behavior. . This phenomenon can be explained by the way that individuals with high
income levels are not always able to manage their expenses in a good way, due to irresponsible
financial behavior and a tendency to think short. Thus, often an individual with a high income
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level still encounters financial problems. Generally, whenever an individual experiences an

increase in income, then expenditure also increases and even exceeds additional income
(Kholilah and Iramani, 2013). The results of this study are in line with the research of Perry &
Morris (2005) which states that income has a positive relationship to financial behavior.
Someone with a high level of income is able to manage expenses well. The results obtained
from several student respondents who can manage their income carefully based on good
financial behavior so that student financial behavior is able to make students smart in managing
their finances for the future. Someone with a high level of income is able to manage expenses
well. The results obtained from several student respondents who can manage their income
carefully based on good financial behavior so that student financial behavior is able to make
students smart in managing their finances for the future. Someone with a high level of income
is able to manage expenses well. The results obtained from several student respondents who
can manage their income carefully based on good financial behavior so that student financial
behavior is able to make students smart in managing their finances for the future.
On research previously conducted by Purwidianti and Mudjiyanti (2016), Amaiyah and
Ismanto (2020), Alexander, Pamungkas (2018), Iramani (2013), Sampoerno and Asandimitra
(2021), stated that income had a significant positive effect on financial behavior.

Suggestion
In connection with the results of this study, the researcher will provide some suggestions
that may be useful for other researchers or for further research, namely by taking a wider range
of sampling so that it can strengthen and complement previous research. To further increase the
number of respondents, so that the results obtained are more accurate and can strengthen the
results of the study. And add several other variables such as Financial Knowledge, Financial
Education, Emotional Intelligence and other variables that influence financial behavior.
Basically this section describes how the research was conducted. The main materials of
this section are: (1) research design; (2) population and sample (research target); (3) data
collection techniques and instrument development; (4) and data analysis techniques. For
research that uses tools and materials, it is necessary to write down the specifications of the
tools and materials. Tool specifications describe the sophistication of the tools used while.

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