Mental Accounting and Heuristics in Personal Finance Management in Students of The Faculty of Economics and Business (Case Study: On Unworking Students)

Abstract

Because parents no longer have much control over their children's shopping and consumption choices, students must develop good money management skills in order to make wise financial decisions (Mulyadi et al, 2022). Often they spend carelessly and irrationally when they don't have good money management, resulting in poor money management. The purpose of this research is to find out how heuristics and mental accounting can be used in personal financial management. This research was conducted mainly on unemployed students at the Faculty of Economics and Business, Tanjungpura University, Pontianak. A descriptive qualitative approach was used in this investigation. The findings show that the majority of research respondents are still in the process of learning to use mental accounting, and the use of heuristics by FEB UNTAN students is still lacking. Three main factors contribute to poor mental accounting and heuristic implementation: low motivation, limited experience, and lack of information. Even though the post sorting has been completed, for students who have used mental accounting. However, this is impossible to achieve in practice because respondents' financial decisions (heuristics) usually use them to consume rather than save or invest.