Introduction
Literacy is one of the important skills that individuals must possess in their daily lives. In general, literacy is not only limited to the ability to read and write, but also includes understanding information in various forms, including visual, digital, and financial information.
In the context of finance, financial literacy is the ability to understand basic financial concepts and apply them in economic decision-making. This literacy includes understanding how to acquire, manage, allocate, and mitigate financial risks, both individually and within organizations.
In the modern era, financial literacy has become a basic necessity, especially for students. Students are in a transitional phase towards independence, so understanding financial management is very much needed. With a good foundation in financial literacy, students can be more prudent in planning their finances, managing expenses, saving, and facing financial risks in the future.
The Influence of Financial Literacy on Student Financial Management Behavior
Various studies have proven that the level of financial literacy affects students’ behavior in managing finances. At Singaperbangsa University Karawang, research shows that the higher the students’ understanding of basic financial aspects such as saving, borrowing, and investing, the better their behavior in managing finances. Only the aspect of insurance does not show a significant influence.
A similar finding was discovered in a study at Ganesha University of Education (Undiksha), which showed a positive and significant influence between financial literacy and students’ financial management behavior. The higher the financial literacy, the wiser students are in making daily financial decisions.
Another study at IAIN Kediri, specifically on the 2018 cohort of Islamic Economics students, shows a strong correlation between financial literacy and financial management behavior. The research mentioned that 40.1% of the variation in students’ financial management behavior is influenced by their level of financial literacy.
Students with a good level of financial literacy tend to be able to plan their expenses wisely, have discipline in saving, avoid consumerist behavior, and understand financial risks before making important decisions. Therefore, improving financial literacy is key to building healthy financial behavior among students.
The Influence of Hedonistic Lifestyle on Student Financial Behavior
On the other hand, a hedonistic lifestyle poses a significant challenge in managing student finances. A hedonistic lifestyle refers to a way of living that focuses on the fulfillment of pleasure, comfort, and personal satisfaction, without considering the long-term impact.
In the student environment, this lifestyle is evident from impulsive shopping behavior, frequently gathering in expensive places, following consumer trends, and buying items that are not essential. This habit can lead to an imbalance in financial management.
Research shows that a hedonistic lifestyle negatively affects students’ financial behavior. Students who are accustomed to a consumptive lifestyle tend to struggle with managing their allowance, have minimal savings, and even go into debt to maintain their lifestyle. The impact is even greater if it is not balanced with a good level of financial literacy and self-control.
Therefore, it is important for students to balance their desire for fun with their ability to manage finances. Awareness of the impact of a consumptive lifestyle needs to be instilled early on so that students do not get trapped in financial problems in the future.
Baca Juga:Â Pengaruh Financial Management terhadap Lifestyle Spending Mahasiswa
Solutions to Overcome the Impact of Hedonistic Lifestyles on Students
To reduce the negative impact of a hedonistic lifestyle, students need to build a healthy mindset and financial habits. One of the main steps is to improve financial literacy. Students can learn how to create a personal budget, control expenses, and understand the importance of saving or investing.
In addition, students must distinguish between needs and wants. This awareness helps them be more selective in their spending, thereby avoiding unnecessary purchases.
For example, when a student has only a little money left at the end of the month, they are then confused between buying new clothes or buying the textbooks assigned by the lecturer. If the student understands financial literacy, they will choose to buy the books because books are a more primary need compared to new clothes.
Having short-term and long-term financial goals is also important. With clear financial targets, students can be more directed in their use of money and motivated to save or seek additional income.
The social environment also plays a significant role. Students are advised to associate with people who support a simple and financially healthy lifestyle. In this way, they are not easily influenced by consumerist trends that only provide temporary satisfaction.
If possible, students can start looking for additional sources of income, such as part-time jobs or small businesses, to increase financial independence and reduce dependence on parental allowances.
Financial Awareness as the Key to the Future
From the above explanation, it can be concluded that financial literacy and lifestyle have a significant influence on students’ financial management behavior. The high level of financial literacy encourages students to be more prudent in managing their expenses and preparing for a better financial future.
On the contrary, an uncontrolled hedonistic lifestyle can trigger consumer behavior, financial difficulties, and even debt. Therefore, a balance between fulfilling needs and desires is necessary, accompanied by an increase in financial literacy and financial awareness.
Thus, students can not only enjoy their youth wisely but also be better prepared to face financial challenges after graduation, and be able to achieve independence and financial well-being in the future.
Nama Penulis: Najwa Arina Rifda
Mahasiswa Pendidikan Bahasa Arab Universitas Muhammadiyah Prof. Dr. Hamka
Supervisor: Muhammad Iman Sastra Mihajat, Ph.D.
Editor: Ika Ayuni Lestari
Bahasa: Rahmat Al Kafi
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