Table of contentsDependent variable: financial management behavior of studentsIndependent variables: financial literacyRole of parents and friends in financial management of studentsPsychological influence< the role of self-concept and emotionsFinal conclusionsReferencesIn this chapter, we would like to I would like to make the discussion on the literature review. In the review, it presented the definition of financial management behavior and the dependent and independent variable. The importance of financial management for students is also demonstrated in the essay because there is a relationship between students' financial management behavior and the effect of independent variables on students' behavior. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essayDependent Variable: Money Management Behavior of StudentsThe dependent variable of this research is the financial management behavior of students. Financial management can be defined as the process of budgeting, saving, investing, spending, or monitoring the use of personal money. This management can bring many benefits if the student has a behavior capable of managing their money effectively. Effective financial management behavior expresses the ability of individuals to manage and control their own finances. If the individual can manage their money in the right way, they will have more space to meet their own needs. Besides the word, an effective financial management technique enables students to make prudent financial decisions and exhibit more secure and responsible financial behavior. Successful money management is an important learning skill for individuals because financial resources and financial situations affect their quality of life and social relationships. During university life, the student will be confronted with various situations and all these situations will influence his level. behavior, attitude and concept. This means that undergraduates develop the ability to adapt to changes in economic conditions and social relations that often arise during their studies. For example, as they progress in their studies, they will reduce their dependence on their parents and change their accommodation as they leave home, start creating friendship groups in the university area, will receive professional training and find part-time jobs. Students also need to learn how to manage the money they have, such as paying for living expenses, tuition fees, and welfare costs. Furthermore, their risky spending behaviors may lead students to work longer hours and, consequently, poor academic performance and may affect their long-term employability. Furthermore, irresponsible and risky drinking behaviors will affect undergraduate students' academic performance, social relationships, and physical and mental health. Therefore, understanding students' financial management behavior is the most important issue in today's society. Independent Variables: Financial Literacy Financial literacy is the ability of the cognitive, behavioral and behavioral elements that lead the individual to manage their money. This is a person with the appropriate financial knowledge, short-term decisions and sound long-term financial planning to understand the key financial concept, andwho has the ability to manage personal finances and confidence level. In other words, financial literacy can also be defined as the ability to read, analyze, manage and communicate personal financial situations that affect material well-being. It also involves the knowledge and skills needed for a person's budgeting, saving, investing, and insuring. This type of skills and knowledge will affect people's mentality on how to use and find money and they will use a lot of time to think about how to manage money if they need to. This kind of mindset will allow people to start and develop a financial habit. Based on the results displayed in the journal, the collage student will know how to avoid negative financial behavior if they adopt positive financial behavior. Positive financial behavior is related to the student always performing a positive financial activity, such as managing their money effectively. On the contrary, students with negative financial behavior have low intention to manage their money because some of them lack relevant financial knowledge. In collage student can choose any type of program offered by collage and prefer to be part of their course. . Therefore, they can choose and study some elective programs related to financial literacy to develop their financial management behavior and ability. The student can also improve their financial knowledge and promote skills that can enable them to make better decisions regarding money through the financial literacy program. As a result, the student with a high level of financial literacy can lead them to have a clear mindset that allows them to understand their financial responsibilities and investment priorities. Financial responsibilities can make them understand what they need in terms of income level and how much they spend on expenses. They learn to prioritize and limit spending perks, different payment methods, and the safety pin. So, they can manage their expenses, maintain their preferred lifestyle. As a result, students are often described as people with strict budgeting and strong work ethics. However, there is also a portion of students who are perceived as poor financial managers because they mainly focus on short-term goals without the long-term goals. long-term objectives. This type of short-term goal-oriented student belongs to the group who focuses on their hobbies such as gym and sports. Gymnastics and sports is an exercise that requires spending a lot of money because people who go to the gym and athletes have to buy expensive equipment to train. In a nutshell, there are many different approaches to money management between senior levels. financial literacy education level and lower financial literacy education level of undergraduate students. Role of parents and friends in managing students' moneyParent, a parent who plays the role that sets a good example. It holds an important place in the hearts of their children, no matter where they are. In financial management behavior, parents are an important source of social influence who will provide advice and material support to their children. These guidance and material support can bring many benefits and conveniences to their children who are undergraduate students in collage. As an example ofChildren's financial management behavior, parents can teach their children smart and healthy habits. For example, the study found that, compared to no parental support for students, higher levels of parental support and advice students are more likely to adopt prudent and desirable financial management practices. Parents will use their past experiences as teaching materials to teach their children as an excellent positive person in financial management behavior and give instructions to avoid bad financial situation. No parent would want their children to not know how to manage and control their money and end up facing financial problems. On the other hand, parents may also inadvertently teach their children reckless money management behaviors, such as always misusing their credit card to buy something. without thorough and calculated consequences. This type of negative financial management behavior will cause undergraduate students to maintain excessive credit card balances, instead of being able to continue their studies smoothly during their college life. As a result, there is a huge difference in debt levels between the credit debt tied to students' salaries being covered by their parents and the credit debt tied to students covering it on their own. Student credit debt paid by parent They tend to have a higher level of debt than student credit debt covered by themselves, because they consider credit debts not part of their expenses . This type of student must have the idea that he must pay for everything he spends, even on education or entertainment. Besides the word, parents need to set an example of correct behavior when it comes to money management, as belonging will influence the credit-oriented undergraduate culture. Sometimes some high school graduates will choose university far from home, like they live in Johor, but they want to. go to Kuala Lumpur to continue their educational life. When recent high school graduates leave home, their spending increases and their financial management behavior also becomes more complicated. At present, as key players in social groups besides parents, peer groups also play an important role in the development of undergraduate students' financial management behavior. In other words, when they interact with their friends and peers, the financial management behavior and characteristics they learn from their parents are shaped. One person's view and behavior regarding financial management will easily influence other people's view and behavior regarding financial management. When the undergraduate student participates in certain social activities, the social activities will cause the undergraduate to establish interactions with peers which will influence the types of social activities and the frequency of social activities. undergraduate. For example, decisions about where to eat, what activities to participate in, and how much to drink can also be influenced by peers. Peers can also influence undergraduate students' clothing purchasing habits, such as purchasing cheap or famous brands and the type of technological goods, such as blindly searching for the latest version of the phone. All of these will influence their financial characteristics and financial management behavior. If not properly controlled, theyare likely to face increased dependence on debt and credit. This situation can lead to students having to work for a long period of time to earn money and pay off their debts. In conclusion, parents and peers are important key elements that will determine students' financial management behavior. Parents' and friends' financial management behavior, credit perceptions, expectations, financial practices and decisions will influence undergraduate financing behavior and financial management practice. Psychological influencePsychological influences will also affect the financial management behavior of individuals. Indeed, human psychology focuses on how people process their internal thinking to understand and participate in the world. Based on the research conducted, it shows that individual financial management behavior and their financial decision making will be influenced by the internal thought process. The human internal thought process is an extremely large and complex system. Identity construction, emotion, personality, risk taking and impulsivity all belong to the influence of individual psychology on financial management behavior. Depending on psychological influences, undergraduates will focus on the positive rather than negative consequences of their financial management behaviors. In the following subsection, it will briefly discuss the different psychological impacts on financial management behavior. In this subsection, it will explain how self-concept or self-identity influences undergraduate students' financial management behavior. Self-concept or self-identity can also be defined as who I am. Some people argue that self-concept or identity depends on how the individual defines or is identified, which will be reflected in their life and behavior. Self-identity is an awareness that has the capacity to influence how the individual manages themselves, for example the ability to take responsibility for their own practice and behavior. Thus, Pinto et al. point out that money is a means that can help people design the lifestyle they look forward to, so money can also be defined as a method for people to manage their identity. Therefore, this situation confirms that there is a close relationship between people's personal identity and their financial management behavior. Furthermore, according to Dwyer et al., credit appears to be an important component of most consumers' lives in today's society. . In Sallie Mae's research in the United States, she found that 84% of students will have at least one credit card on hand. Therefore, credit cards have become an indispensable part of the daily lives of many students in Western society today. In particular, those who wish to be recognized as luxury young people will be free to obtain credit, while students who consider themselves ordinary young people will be able to carefully manage their money and credit card balances. This proves once again that they use money to express their own concept. Emotion is also one of the psychological factors that influence financial management behavior. When a person experiences a positive emotion, a positive emotion will help him to make the right and wise decision to influence his life. For example, happiness may motivate the individual to reduce their appetite for risk-taking and make more prudent decisions, such as planning and controlling, 22(2), 77-92.