The Impact of Finansial Literacy, Finansial Behavior, Peer Pressure, and Digital Payment on Consumtive Behavior (Case Study of Yogyakarta University Students)

Presenters: Najwa Airin & Ratna Sofiana
Affiliation: UIN Sunan Kalijaga Yogyakarta
Room: 1

ICIES News- At the 4th International Conference on Islamic Economics Studies (ICIES) 2024, held at UIN Sunan Kalijaga Yogyakarta, Najwa Airin and Ratna Sofiana presented their research titled “The Impact of Financial Literacy, Financial Behavior, Peer Pressure, and Digital Payment on Consumptive Behavior: A Case Study of Yogyakarta University Students.” Their study offers crucial insights into the factors influencing the consumptive behavior of students in the Special Region of Yogyakarta, particularly within the context of sharia financial literacy.

Despite the assumption that financial literacy should logically lead to better financial decision-making, the research revealed that sharia financial literacy does not have a significant impact on the consumer behavior of the students studied. This finding aligns with previous research by Winarta et al. (2019), which suggests that even those with good financial knowledge may not always exhibit financially responsible behavior in practice.

The presenters emphasized that financial behavior—how individuals treat, manage, and use their financial resources—has a more substantial impact on consumer behavior. According to Armatya & Firmialy (2023) and Dilasari (2020), positive financial behavior can predict and control consumptive tendencies among students. Those who manage their finances effectively tend to have greater awareness and control over their consumption patterns.

Peer pressure also emerged as a significant factor in shaping consumptive behavior. Rahmawati et al. (2022) and Kurnia & Hakim (2021) highlight that students who are surrounded by peers with consumptive habits are more likely to engage in similar behavior. On the other hand, those with financially responsible peers tend to adopt better spending habits.

Finally, the influence of digital payment systems on student consumer behavior was another critical focus of the presentation. The ease and efficiency of fintech payments have made it more convenient for students to make impulsive purchases, thereby increasing their likelihood of engaging in consumptive behavior. Gunawan (2023) supports this view, noting that the convenience of fintech payments fosters a tendency toward emotional, rather than rational, spending.

This research contributes to a deeper understanding of the factors driving consumptive behavior among university students in Yogyakarta, offering valuable insights for policymakers and educators aiming to promote financial responsibility in the younger generation.

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