Indonesia Conference Directory

This study aims to examine the influence of the existence of demographic factors (gender, age, marriage status and education level) and financial education on the financial capability of the community in Surabaya, specifically related to investment behavior. The research was conducted in Surabaya using an explanatory quantitative approach which aims to analyze the influence between factors in research. Respondent samples were determined by non-probability sampling techniques, using convenience sampling method on respondents who are domiciled in Surabaya, with age criteria between 18 - 55 years old, in 2019. The first stage, the results of questionnaire data collection were processed using chi-square analysis techniques to prove the relationship of demographic factors and financial education to the financial capability of investors in Surabaya. The second stage, uses SEM-PLS to test the factors that influence respondents to the financial capability of investors in Surabaya. The results of the study show that demographic factors (namely age and education level) and financial education have a significant positive effect on investors financial capability in Surabaya. The higher age and education level of a respondent can improve financial capability so that financial behavior in investing is more responsible. Similar to financial education, education provided related to finance has the potential to increase the financial literacy of a respondent which ultimately has an impact on increasing the investors financial capability in its financial behavior.