The role of parental education, frugal living, hedonistic lifestyle in financial behavior undergraduate thesis

ENGLISH:

This study aims to analyze the influence of parental education, frugal living, hedonistic lifestyle, and financial attitude on the financial behavior of international students in Malang City. Financial behavior plays a critical role in determining an individual’s financial well-being, especially among students managing their finances independently abroad.
Using a quantitative research method, data were collected via online questionnaires distributed to 392 international students in Malang, selected through purposive sampling. Structural Equation Modeling (SEM) with SmartPLS software was applied to analyze the relationships between variables. The findings indicate that frugal living and financial attitude have a significant positive effect on financial behavior, showing that students who adopt frugality and maintain responsible financial attitudes tend to manage their finances better. Parental education and hedonistic lifestyle, however, do not significantly influence financial behavior, suggesting that students’ financial practices are shaped more by their personal attitudes and lifestyle choices rather than their parents’ educational background or pleasure-seeking tendencies. This research contributes to understanding the financial decision-making of international students and offers insights for designing effective financial education programs to improve students’ financial management skills .