Analysis of Financial Literacy and Risk Tolerance on Student Decisions to Invest

Rahayu Mardikaningsih; Didit Darmawan

Authors

Rahayu Mardikaningsih Universitas Sunan Giri Surabaya
Didit Darmawan Universitas Sunan Giri Surabaya

Keywords:

university students, financial literacy, risk tolerance, investment decision

Abstract

Every individual, including students, needs wealth to fulfill all their needs. Therefore, they always try to acquire this wealth through investment decisions. In making investment decisions, there are factors that need to be considered, such as financial literacy and tolerance for risk. This study aims to examine the effect of financial literacy and tolerance for risk on the investment decisions of students in Surabaya City. This research uses quantitative methods and a random sampling method with a sample size of 120 respondents. The data used in this study is primary data obtained through a survey using a questionnaire. Data analysis was conducted using multiple linear regression to test the hypothesis regarding the effect of financial literacy and risk tolerance on investment decisions. Data analysis includes validity, reliability, classical assumptions, hypothesis testing, and the coefficient of determination. All analyses were conducted using SPSS version 26 software. Based on the results of the study, it is evident that the tests carried out on the variables studied showed significant results. This means that both individually and as a whole, financial literacy and tolerance for risk affect students' decisions to invest in Surabaya City.

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