<![CDATA[Many policies have been provided to improve the financial literacy of individuals, especially those involving financial education programmes. However, positive financial behaviour requires more than financial literacy: an individual must also have self-confidence or self-belief in their ability to manage their personal finances. This attribute is known in the psychological literature as “self-efficacy”. This paper examines the importance of financial literacy and self-efficacy in affecting individual financial behaviour. The research is conducted through a survey of 129 undergraduates of Economics Education, at Sebelas Maret University. The results of the research show that both financial literacy and self-efficacy have positive and significant effects on financial behaviour. Undergraduates with high financial literacy are more likely to hold investment and savings products and are less likely to hold debt-related products. Similarly, undergraduates who have high self-efficacy are likely to be better at managing their personal finances. Moreover, the significance of financial literacy and self-efficacy has important implications for the development of policies that aim to improve financial behaviour among college students through financial education programmes.]]>
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