Financial Literacy and Its Impact on KIP Scholarship Recipients’ Pocket Money Management at Gema Widya Bangsa

Abstract

This study aims to analyze financial literacy and its implications on the ability to manage the pocket money of students who receive KIP scholarships at the Gema Widya Bangsa College of Economics. Financial literacy is an individual's understanding of basic financial concepts such as budgeting, saving, investing, and debt management. In the context of students, financial literacy is important considering that the majority of students are in a transition period towards financial independence.  Using quantitative research methodology with an analytical approach used is descriptive analysis and correlation analysis, simple linear regression, determination coefficients, hypothesis testing with t-test, data collected through questionnaires distributed to 79 KIP Scholarship scholarship recipients at the Gema Widya Bangsa College of Economics. Based on the results of the study, the results of regression analysis were obtained Y= 24.877+0.731 and the correlation coefficient was 0.901 and the R Square was 0.812 or the Determination Coefficient was 81.2%. In addition, the results of hypothesis testing with the t-test were obtained > ttab, which was 6,803 > 1,664. This finding shows the implications of financial literacy on the ability to manage the pocket money of students who receive KIP Scholarship scholarships at the Gema Widya Bangsa College of Economics. It is hoped that the results of this research can be used as evaluation material in fostering students to be wiser in managing personal finances, including the ability to prepare a budget, save consistently and avoid excessive consumptive behavior. This research has novelty in several important aspects that distinguish it from previous financial literacy studies, namely: focus on KIP Scholarship scholarship recipients, the context of pocket money management as a representation of student financial independence, a practical approach to student financial behavior with the help of Scholarships, the scope that supports the evaluation of government scholarship policies, strategic recommendations based on empirical evidence.