Analisis Pengaruh Faktor Psikologis, Sosiodemografi, dan Literasi Keuangan terhadap Perencanaan Keuangan Dana Pendidikan Anak Keluarga Milenial Indonesia

Abstract

Education is a crucial investment for children's future since it serves as the foundational skill set for producing qualified people. Therefore, it becomes a crucial responsibility of parents to provide education fund for children despite the, high cost of education in Indonesia being a hurdle for millennial parents. The objective of this research is to analyze sociodemographic and psychological variables related to financial allocation for children's education. Four hundre fifteen millennial parents from Indonesia are randomly chosen and tested using the PLS SEM statistical analysis method. The confidence level set in this research is 95%, a = 5%. The research finds that psychological factor about the future perspective and financial risk tolerance have a favorable and significant impact on the financial allocation for children's education. In addition, planning for children's education.funds is negatively and significantly affected by educational sociodemographic factor. On the other hand, the financial planning for children's education is affected positively but not significantly by sociodemographic and financial factors. Future perspectives significantly and positively affect the financial literacy. Financial literacy is negatively and insignificantly affected by education, whereas income affects positively and insignificant. Financial literacy is effective to reduce the impact of future expectations on planning education funds, yet it is less effective at reducing the impact of income and education on planning children's education.funds.