The Role of Financial Literacy and Digital Literacy in Increasing Motivation and Investment Intent

Abstract

Financial literacy and digital literacy play an important role in terms of various ease and convenience in the investment activity process so that students are motivated. The research aims to understand the role of financial literacy and digital literacy in increasing the motivation and intent to invest towards students of economics and business faculty. This research uses a quantitative method approach, for this research population are the students of the faculty of economics and business at the university of muhammadiyah palopo. And the samples in this study were taken using non-probability methods, namely purposive sampling. The sample size was taken as much as 200 samples with the minimum sample consideration for the Structure Equation Model (SEM) of 100 samples and a 5% error rate, but the sample processed was only 180 samples. To test the hypothesis of this study using the Structure Equation Model (SEM) technique through the Partial Least Square (PLS-SEM), with the help of the SMART PLS 4 application. The results of this study show that financial literacy variables have a positive and significant influence on the motivation variables and the intention to invest, just as the digital literature variables also have a significant positive impact on motivation and investment intention, and motivation also has a positive, significant impact on the intent to invest in this research.