Effect of Financial Literacy, Behavior, and Income on Students Investments

Abstract

In the era of digital financial development, young generations, particularly university students, play a crucial role in shaping future economic stability. However, many students still struggle to make sound investment decisions due to low financial literacy, poor financial behavior, and limited income. This study aims to analyze the effect of financial literacy, financial behavior, and income on investment decisions among undergraduate students enrolled in the Faculty of Economics, Universitas Mercu Buana Yogyakarta. The research employed a quantitative methodology employing an associative framework causal design, using purposive sampling to select 94 respondents. The data were obtained through survey instruments and examined employing multiple linear regression analysis. The findings indicate that financial behavior and income have a positive and significant effect on investment decisions, while financial literacy has no significant effect. These findings indicate that financial behavior and income are dominant factors influencing students' investment decisions. The study contributes to a better understanding of how behavioral and economic factors shape investment intentions among young investors. Future research should expand the sample scope and include psychological or motivational factors to gain a more comprehensive perspective.