Transforming Financial Futures: The Impact of Family Economic Education and Self-Efficacy on Student Economic Behavior Through Economic Literacy

Abstract

The objective of this study is to examine the influence of family economic education and self-efficacy on economic behavior, while considering economic literacy as a mediating factor. A total of 172 students from three East Java State Universities were included in the study. Questionnaires were given at these universities to collect data. Data analysis was conducted using Warp PLS software, employing Analytic Structural Equation Modelling (SEM). The results demonstrate that providing family economic education has a substantial and beneficial impact on individuals' economic behavior. Similarly, self-efficacy and economic literacy have significant and favorable effects on economic behavior. Furthermore, the effect of learning on the topic of family economics and the belief in one’s ability to apply knowledge of economics also have a positive effect. Indirect effects show that family economic education has a large positive effect on behavioral economising through enhancing economic knowledge. Besides, self-efficacy also exerts a positive impact on economic behavior through economic literacy. These results underlined the potential of family economic education and self-efficacy as the efficient tools to improve economic behavior by increasing the level of economic literacy.