ABSTRACT
The purpose of this study is to determine the level of financial literacy among college students, to examine the effect of financial literacy on financial behavior. In this study, dependent variable of financial literacy is projected by general knowledge, interest rate and inflation, time value of money, and risk diversification. The measurement is using multiple choice questions and it was calculated based on the percentage of the correct answers. The dependent variable is measured using questions. This study is an applied research using explanatory method. The samples contain 535 college students. The data were analyzed by calculating the percentage of the correct answers to determine the level of financial literacy, and the multiple linear regression and hypothesis testing using F-statistics and t-statistics were used to analyze the effect of the financial literacy on the financial behavior. The results show that respondents answered about 56.6% of financial literacy questions correctly. It indicates that the level of financial literacy remains low. The result of financial behavior indicates that 80% of students still ignore to plan their financial decision. From multiple regression analysis, there is a significant effect of financial literacy on financial behavior.
