MEASURING FINANCIAL LITERACY OF YOUNG ADULTS IN THE DIGITAL ECONOMY: A GENDER PERSPECTIVE

Abstract

The Financial Services Authority (OJK) reported that in 2019, the financial literacy index in Indonesia reached only 38.03%. The index indicates that the financial literacy ability of the Indonesian population still needs to improve. This research focuses on measuring young adults' financial literacy in a developing country such as Indonesia. It is a field study using a survey approach (explanatory research), where data collection is conducted through questionnaires. The target population includes students aged 18 to 22 from various universities across Java. Respondents were selected through a census method, and the questionnaires were distributed via social platforms such as WhatsApp and Kata data. In this study, we collected 333 respondents with valid data of 331 respondents. The questionnaires used in this study consist of 52 questions. The result of this study shows that money attitude does not significantly influence financial literacy; however, after being analyzed per dimension, the avoidance and reward dimensions significantly influence financial literacy. Gender does not positively influence Financial Literacy, and no disparities in financial literacy among students with exposure to financial education and those without such exposure. Since there is no difference between students who received financial education exposure and students who did not, it can be suggested that the government influences young adults' financial attitudes to improve their financial literacy. Additionally, educational institutions should revise their course materials to improve students' financial literacy.