LAUSR

This research examines the effect of locus control on financial literacy, including financial attitude, financial behavior, and financial self-efficacy. This study used a survey method by sending a questionnaire to the respondent through an enumerator. This study uses a sample, namely students of the accounting study program in Surabaya, Indonesia. A total of 159 questionnaires were processed from distributing 250 questionnaires randomly. This study uses the Partial Least Square data analysis. The result shows that locus of control affects financial attitude, financial behavior, and financial self-efficacy. Financial behavior increases when the respondents show excellent financial knowledge behavior and believe that they can manage for their finances. This investigation confirms that locus of control affects financial behavior. Meaning the role of locus of control is very important to increase financial behavior. This study also found that locus of control can contribute to the theory of social construction. Moreover, social construction theory can predict how individuals act to improve their financial behavior.   Received: 15 October 2020 / Accepted: 19 December 2020/ Published: 5 March 2021