Financial Behavior and Financial Well-Being of College Student: Effect of Self-Control, Optimism, and Deliberative Thinking
For the first time in their lives, most young adults are managing their finances on their own. In
today's society, the ability to manage personal finances has become increasingly vital. Thus,
personal finance study and how individuals make financial decisions are fascinating topics to
investigate. This research aims to know the influence of self-control, optimism, and deliberative
thinking on financial behavior and its impact on the financial well-being of college students.
The research methodology used in this study is a case study with a survey research method.
Judgment sampling techniques derived from non-probability sampling techniques are used for
sample selection. The sample of this research is 337 respondents, and we use the OLS regression as
the model estimation.
This study indicates that self-control and deliberative thinking significantly influence financial
behavior, but optimism does not affect financial behavior. Then, self-control significantly affects
financial well-being. Surprisingly, financial behavior does not affect the financial well-being of the
college student, and other variables such as optimism and deliberative thinking also do not affect
financial well-being. This result could give evidence about the factors affecting financial behavior
and financial well-being; thus, it could give the college student and financial institutions
implications for increasing personal financial ability as a whole.
Key Words: Financial behavior; Financial well-being; College student; Personal finance.
Abendroth, L.J., Diehl, K. (2006). Now or never: Effects of limited purchase opportunities on
patterns of regret over time. J. Consum. Res. 33 (3), 342–351.
Achtziger, A., Hubert, M., Kenning, P., Raab, G., Reisch, L. (2015). Debt out of control: The
links between self-control, compulsive buying, and real debts. J. Econ. Psychol. 49, 141–149.
Adams, T., & Moore, M. (2007). High-risk health and credit behavior among 18-to 25-year-old
college students. Journal of American College Health, 56, 101–108.
Ajzen, I. (1991). The Theory of Planned Behavior. Organizational Behavior and Human
Decision Processes, 179-211.
Ajzen, I. (2005). Attitudes, Personality, and Behavior (2nd Edition ed.). Open University Press.
Arnett, J. J. (2000). Emerging adulthood: A theory of development from the late teens through
the twenties. American Psychologist, 55, 469–480.
Baumeister, R.F. (2002). Yielding to temptation: Self-control failure, impulsive purchasing, and
consumer behavior. J. Consum. Res. 28 (4), 670–676.
Bergner, R. M. (2011). What is Behavior? And So What? New Ideas in Psychology, 29, 147-
Biljanovska, N., Palligkinis, S. (2015). Control thyself: Self-control failure and household
wealth. SAFE Working Paper No. 69. Available at SSRN: https://ssrn.com/abstract=2509080.
Carver, C. S., & Scheier, M. F. (2001). Optimism, pessimism, and self-regulation. In E. C.
Chang (Ed.), optimism & pessimism: Implications for theory, research, and practice (pp. 31-
. Washington, DC, US: American Psychological Association. Doi:
Consumer Financial Protection Bureau. (2015). Measuring Financial Well-being: A Guide to
Using the CFPB Financial Well-being Scale. consumerfinancial.gov/financial well-being.
Choi, J.J., Laibson, D., Madrian, B.C., (2011). $100 bills on the sidewalk: Suboptimal
investment in 401 (k) plans. Rev. Econ. Stat. 93 (3), 748–763.
Cornelius, L. M., & Frank, S. A. (2015). Student loan debt levels and their implications for
borrowers, society, and the economy. Educational Considerations, 42(2), 35–38.
Durayappah Adoree. (2010). The 3P Model: A General Theory of Subjective Well-Being. J
Fernandes, D., Lynch Jr., J.G., Netemeyer, R.G. (2014). Financial literacy, financial education,
and downstream financial behaviors. Manage. Sci. 60 (8), 1861–1883.
Fujita, K., Trope, Y., Liberman, N., Levin-Sagi, M., (2006). Construal levels and self-control. J.
Pers. Soc. Psychol. 90 (3), 351–367.
Gathergood, J. (2012). Self-Control, Financial Literacy and Consumer Over- Indebtedness. J.
Econ. Psychol. 33, 590–602.
Gedmintiene, D. D., and Visockaite, A. (2016). The Importance of Personal Finance for
Investment and Applying Financial Behaviour Principles in Personal Finance Investment
Decisions in Lithuania. Societal Studies Research Journal, 8(1), 118-131.
George, L. K. (1993). Sociological perspective on life transitions. Annual Review of Sociology,
(1), 353-373. http://dx.doi.org/10.1146/annurev.so.19.080193.002033
Hilgert, M. A., Hogarth, J. M., and Beverly, S. G. (2003). Household Financial Management:
The Connection between Knowledge and Behavior. Federal Reserve Bulletin, 309-322.
Kahneman, Daniel and Tversky, Amos 1982. On the study of statistical intuitions. Cognition,
Vol. 11, Issue. 2, p. 123.
Kahneman, D. (2003). A perspective on judgment and choice: Mapping bounded rationality.
American Psychologist, 58(9), 697–720. https://doi.org/10.1037/0003-066X.58.9.697
Katona, George. (1968). The American Economic Review Vol. 58, No. 2, Papers and
Proceedings of the Eightieth Annual Meeting of the American Economic Association (May,
, pp. 19-30.
Kempson, E., Finney, A., & Poppe, C. (2017). Financial well-being a conceptual model and
preliminary analysis. Consumption Research Norway (SIFO)
Kumar, R. (2011). Research Methodology (3rd Edition ed.). SAGE Publications.
Lind, D. A., Marchal, W. G., and Wathen, S. A. (2012). Statistical Techniques in Business and
Economics (Vol. 15th). Mc-Graw-Hill/Irwin.
Lusardi, A. (1999). Information, expectations, and savings for retirement. In: Aaron, H. (Ed.),
Behavioral Dimensions of Retirement Economics. Brookings
Lusardi, Annamaria, and Olivia S. Mitchell. 2014. "The Economic Importance of Financial
Literacy: Theory and Evidence." Journal of Economic Literature, 52 (1): 5-44.
Lusardi, A. and Mitchell, O.S., (2007). Baby boomer retirement security: The roles of planning,
financial literacy, and housing wealth. J. Monetary Econ. 54 (1), 205–224.
Lusardi, A.(2012). Numeracy, Financial Literacy, and Financial Decision-Making. National
Bureau of Economic Research, (No. w17821).
Lyons, A. C., Scherpf, E. M., & Roberts, H. (2006). Financial education and communication
between parents and children. The Journal of Consumer Education, 23, 64–67.
Marknetter 2013. Consumer Power: Evolution in the Digital Age. Journal of Interactive
Marketing 27 (2013) 257–269.
Miotto, A.P.S. and Parente, J. (2015). Antecedents and consequences of household financial
management in Brazilian lower-middle-class. Rev. Adm. Empres. 55(1), 50–64. Stromback
Mitchell, O. S., & Lusardi, A. (2015). Financial literacy and economic outcomes: Evidence and
policy implications. The Journal of Retirement, 3(1), 107-114. Retrieved from
Nababan, D., & Sadalia, I. (2012). Analisis personal financial literacy dan financial behavior
mahasiswa strata I fakultas ekonomi Universitas Sumatera Utara.
Nelson, M. C., Lust, K., Story, M., & Ehlinger, E. (2008). Credit card debt, stress and key health
risk behaviors among college students. American Journal of Health Promotion, 22, 400–412.
Norvilitis, J. M., & Santa Maria, P. (2002). Credit card debt on college campuses: Causes,
consequences, and solutions. College Student Journal, 36, 356–363.
O‘Neill, B., Sorhaindo, B., Xiao, J. J., & Garman, E. T. (2005). Financially distressed
consumers: Their financial practices, financial well-being, and health. Financial Counseling
and Planning, 16, 73–87.
Otoritas Jasa Keuangan. (2016). Survei Nasional Literasi dan Inklusi Keuangan 2016. Otoritas
Perilaku Konsumtif Dan Tren Shopaholic Pada Mahasiswa Di Indonesia By Braindilog Sosiologi
Indonesia September 19, 2017 , Tokopedia.
Peterson, A. C., & Leffert, N. (1995). What is special about adolescence? In M. Rutter (Ed.),
Psychosocial disturbances in young people: Challenges for prevention (pp. 3–36). Cambridge:
Cambridge University Press.
Puri M. and Robinson D. T. (2007).Optimism and economic choice. Journal of Financial
Rao, A., & Barber, B. L. (2005). Financial well-being: Descriptors and pathways. TCAI
Working Paper 5–2.
Roberts, J. A., & Jones, E. (2001). Money attitudes, credit card use, and compulsive buying
among American college students. Journal of Consumer Affairs, 35, 213–240.
Scheier M., Carver, C., and Bridges, M.W. (1994). Distinguishing optimism from neuroticism
(and trait anxiety, self-mastery, and self-esteem): A reevaluation of the Life Orientation Test.
Journal of Personality and Social Psychology, Vol 67(6), Dec 1994, 1063-1078.
Scheier, M., & Carver, C. (1985). Optimism, coping, and health: Assessment and implications of
generalized outcome expectancies. Health Psychology, 4, 219–247.
Shim, S., Xiao, J. J., Barber, B., & Lyons, A. (2009). Pathways to life success: A conceptual
model of financial well-being for young adults. Journal of Applied Developmental
Psychology, 30, 708–723.
Sotiropoulos, V., d‘Astous, A. (2013). Attitudinal, self-efficacy, and social norms determinants
of young consumers‘ propensity to overspend on credit cards. J. Consum. Policy 36 (2), 179–
Strömbäck, C., Lind, T., Skagerlund, K., Västfjäll, D., & Tinghög, G. (2017). Does self-control
predict financial behavior and financial well-being? Journal of Behavioral and Experimental
Finance, 14, 30–38. https://doi.org/10.1016/j.jbef.2017.04.002
Taft, M. K., Hosein, Z. Z., & Mehrizi, S. M. T. (2013). The relation between financial literacy,
financial well-being, and financial concerns. International Journal of Business and
Management, 8(11), 63–75. https://doi.org/10.5539/ijbm.v8n11p63
Widener, Katharine N. (2017). Financial Management Issues of College-Aged Students:
Influences and Consequences. Selected Honors Theses. 63. Southeastern University,
Worthy, S. L., Jonkman, J., & Pike, L. B. (2010). Sensation-seeking, risk-taking, and
problematic financial behaviors of college students. Journal of Family and Economic Issues,
Xiao, J. J. (2008). Applying Behavior Theories to Financial Behavior. Handbook of Consumer
Xiao, J. J., and Dew, J. (2011). The Financial Management Behavior Scale: Development and
Validation. Journal of Financial Counseling and Planning, 22(1), 43-59.
Xiao, J. J., Tang, C., & Shim, S. (2009). Acting for happiness: Financial behavior and life
satisfaction of college students. Social Indicators Research, 92, 53–68.
- There are currently no refbacks.