The Role of Parental Ability in Shaping Financial Literacy: Exploring the Influence of Financial Knowledge, Peer Influence, and Family Values

Abstract

This study aims to explore the influence of financial knowledge, peer influence, and family values on the financial literacy of students at Universitas Alma Ata, with a focus on the moderating role of parental ability. The research adopts a quantitative approach with a descriptive research design and multiple linear regression analysis. Data were collected through a questionnaire distributed to 80 students from the Management Study Program, academic years 2020-2022, who had taken courses in financial management, banking and financial institutions, and capital markets. The findings reveal that financial knowledge, peer influence, and family values have a positive impact on students' financial literacy. Parental ability was found to strengthen the effect of financial knowledge and family values on financial literacy, but it did not significantly affect the influence of peers. The implications of this research provide practical contributions to the development of financial literacy programs at the university level and highlight the important role of parents in supporting their children's financial education. This study also offers new insights into the moderating role of parental financial capability in enhancing students' financial literacy.