How to cite:

Frederika Widi Prihartanti, Wiedy Murtini, Mintasih Indriayu (2022).

The Need of Financial Literacy Proficiency Level for Genertion Z

Students at School. Journal Eduvest. Vol 2(3): 598-602

E-ISSN:

2775-3727

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Eduvest – Journal of Universal Studies

Volume 2 Number 3, March, 2022

p- ISSN 2775-3735- e-ISSN 2775-3727

THE NEED OF FINANCIAL LITERACY PROFICIENCY

LEVEL FOR GENERTION Z STUDENTS AT SCHOOL

Frederika Widi Prihartanti

, Wiedy Murtini

, Mintasih Indriayu

Pendidikan Ekonomi/Universitas Sebelas Maret

Email: [email protected], [email protected],

[email protected]

ARTICLE INFO ABSTRACT

Received:

Ferbuary, 26

2022

Revised:

March, 16

2022

Approved:

March, 18

2022

Financial Literacy has a significant role in the individual

decision-making process. Existing studies have proven that

that lower levels of financial literacy lead to irrational

financial decisions funds as well as savings and debt.

Basically, Indonesian students in PISA 2018 have the lowest

mean scores compared to other countries. At the same

time, there is no integration in Indonesia curriculum with

financial education. This study focuses on a review of

financial education used in the current literature as well as

their corresponding limitations. This study focuses on

reviewing the implementation of financial education among

countries in current literature as well as the corresponding

limitations.The result in this study that Financial education

can be done simply. Experiential financial education

appears to be an effective strategy for teaching financial

literacy, even at lower grade levels.

KEYWORDS

Finanacial literacy, financial education, curriculum,

generation Z

This work is licensed under a Creative Commons

Attribution-ShareAlike 4.0 International

INTRODUCTION

Referring to the results of the 2020 population census, the Central Bureau of

Statistics, Indonesia's population is dominated by Generation Z and the millennial

generation. Generation Z is residents who were born between 1997-2012, and the

millennial generation was born between 1981-1996 (BPS, 2021; Puslitdakjibud, 2021).

Frederika Widi Prihartanti, Wiedy Murtini, Mintasih Indriayu

The Need of Financial Literacy Proficiency Level for Genertion Z Students at School 599

Generation Z has been referred to as iGen to reflect the internet generation since the

internet has become a part of their lives (Gabrielova & Buchko, 2021). This makes it

possible for them to have greater access to make transactions and access financial

services. Current trends point to the importance of acquiring financial literacy skills in the

future as today's youth are likely to face more complex decisions (Amagir, van den Brink,

Groot, & Wilschut, 2022; OECD, 2020). Education about finance plays a role in relation

to consumer financial protection and regulation, and equips people with the skills

necessary in understand more complex products and services, choosing the most suitable

one for them, and protecting themselves from financial fraud. As for today, financial

literacy is one of the most important skills a tech-savvy Generation Z student can acquire

(Sconti, 2022). Indonesian students aged 15-16 years who participated in the World

Student Assessment Program (PISA) in 2018 had lower averages than students from 20

other countries regarding financial literacy (OECD, 2020). In a broader scope, income

inequality grows less in countries where economic literacy is higher (Lo Prete, 2013).

As economic conditions have changed due to a pandemic, a person must be able

to have a good ability to manage his finances. Finance is an important part of everyday

life and financial literacy is the best way to prevent excessive citizen debt (Tomášková,

Mohelská, & Němcová, 2011). Financial literacy is the knowledge and skills to apply an

understanding of concepts and risks, skills to be able to make effective decisions in a

financial context to improve financial well-being, both individually and socially, and to

be able to participate in the community (Kemdikbud, 2017). The Ministry of Education

and Culture has announced the National Literacy Movement (GLN) since 2016 as part of

the implementation of the Regulation of the Minister of Education and Culture Number

23 of 2015 concerning the Growth of Character (Rahayu, Rossari, Wangsanata, Saputri,

& Saputri, 2021). Financial literacy is one of the six basic literacys that are activated by

the government (Sujud & Setiaji, 2020). Financial literacy is the knowledge and skills to

apply an understanding of concepts, risks, skills, and motivations in a financial context.

This knowledge is important because so that a person can make effective decisions to

improve financial well-being, both individually and socially, and can participate in the

community.

The results of a study conducted in Belgium involving 688 Generation Z

students, namely grades 8 and 9, found that literacy education can stimulate better

consumer choices (De Beckker, De Witte, & Van Campenhout, 2021). In addition,

financial literacy helps reduce inconsistencies between risk preferences and risk behavior.

The researchers found that financial literacy reduces the inconsistency between risk

preferences and risk behavior for risk-seeking households, but increases this

inconsistency for risk-averse households. The inclusion of financial literacy education

into the school curriculum is an effective way for improving students' ability to manage

finances more rationally (Kaiser, Lusardi, Menkhoff, & Urban, 2021; Lührmann, Serra-

Garcia, & Winter, 2015; Opletalová, 2015; Shephard, Kaneza, & Moclair, 2017).

RESEARCH METHOD

This study focuses on reviewing the implementation of financial education among

countries in current literature as well as the corresponding limitations.

Eduvest – Journal of Universal Studies

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600 http://eduvest.greenvest.co.id

RESULT AND DISCUSSION

In the PISA assessment related to student performance on financial literacy,

Estonia managed to be in first position followed by Finland, Canadian provinces, Poland

and Australia.

Table 1 Comparison of Financial Literacy Education Forms in Several Countries

PISA

Rank

Country

Financial Literacy education

Estonia

The institution responsible for providing literacy education is

the Financial Services Authority. Cross-curricular (the 2010

curriculum combines topics related to monetary and finance in

elementary and junior high schools). WEBSITE:

www.minuraha.ee. This website contains information on

various financial services and products (insurance, savings and

investments), various calculators as well as information

centered on life events and on complaints and redress

mechanisms (how to deal with financial difficulties, how to

complain, useful information for students etc.). (DfE, 2014)

Canada

In Canada, the national strategy focuses on the financial

literacy related to money management, planning and protection

(ie manage money and debt wisely, plan and save for the

future; and prevent and protect against fraud and financial

abuse). The institution is the Financial Consumer Agency of

Canada (FCAC). Website: www.fcac.gc.ca Financial

Consumer Agency of Canada (FCAC). A databasis provided

by the Canadian Financial Literacy Database as a one-stop

shop highlighting resources that can be accessed from public,

private and non-profit organizations across the country to help

people improve their financial knowledge and skills. The

Agency is also active in social media (Twitter, Facebook,

LinkedIn and YouTube). (DfE, 2014)

Australia

In Australia, financial literacy education has been added to the

primary and secondary school curriculum. Teachers now have

the added responsibility of educating students after receiving

some form of professional development (Blue, Grootenboer,

& Brimble, 2014).

Basically, Indonesian students in PISA 2018 have the lowest mean scores

compared to other countries (OECD, 2020). So far, the Financial Services Authority

(OJK) has played an active role in providing financial literacy education through financial

literacy media in electronic form in collaboration with the Ministry of Education and

Culture in 2018. Financial literacy education in Indonesia is still not integrated with the

School curriculum. In August 2021, the new government Officially included financial

literacy in the curriculum. So far, financial literacy education is still being provided

independently with the initiative of teachers to adapt appropriate learning media to

develop students' financial literacy (Anwar, 2021).

Frederika Widi Prihartanti, Wiedy Murtini, Mintasih Indriayu

The Need of Financial Literacy Proficiency Level for Genertion Z Students at School 601

CONCLUSION

Financial education can be done simply. Experiential financial education appears to

be an effective strategy for teaching financial literacy, even at lower grade levels. It is

also a relatively inexpensive approach that does not require extensive teacher preparation.

With the inclusion of financial literacy education in the curriculum, it is hoped that the

literacy level of students will also increase.

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