Economic Literacy and Pocket Money Predict Students’ Interest to Make an Investment

Abstract

Along with the development of economics, it can be seen that the young generation has a big interest in investing, including students in universities. This study aims to examine how well economic literacy as reported by students and their pocket money predicts students' interest to invest. A quantitative method was employed with a sample of 128 students of the Accounting Education Study Program in the final year. The data were collected using questionnaires and were analyzed using standard multiple regression by applying the Statistical Package for the Social Sciences (SPSS). The result of this study revealed that economic literacy and pocket money as perceived by students explains 64.7 percent of the variance in perceived students' interest to make an investment. This analysis of variance is statistically significant. Of the two independent variables, the perceived pocket money makes a statistically significant largest contribution to the prediction of the perceived students' interest to make an investment.