International Journal of Economic, Business, Accounting, Agriculture Management and Sharia Administration |IJEBAS E-ISSN: 2808-4713 |https://radjapublika.com/index.php/IJEBAS 909 ANALYSIS OF THE INFLUENCE OF PSYCHOLOGICAL, SOCIODEMOGRAPHIC, AND FINANCIAL LITERACY FACTORS ON CHILDREN EDUCATION FUND PLANNING FOR INDONESIAN MILLENIAL PARENTS Agnes Renata Rajagukguk 1 , Khaira Amalia Fachrudin 2 , Amlys Syahputra Silalahi 3 1,2,3 Faculty of Economics and Business, University of North Sumatra Corresponding E-mail:agnes.rajagukguk@gmail.com Abstract Education is very important for children's future. It is the basic capital for preparing human quality. That is why setting up a children's education fund is one of the most important tasks for parents. However, this is a challenge for millennial parents because of the high cost of education in Indonesia. The purpose of this study is to analyze psychological and sociodemographic factors related to planning children's education funds. This study examined 415 Indonesian millennial parents who were selected by accidental sampling technique and tested using the PLS SEM statistical analysis method. This study uses a 95% confidence level, ฀ = 5%. The results of the research on psychological factors namely future time perspective and financial risk tolerance have a positive and significant effect on children education funds planning. Sociodemographic factors namely education has a negative and significant effect on children education funds planning. While sociodemographic factors namely income has a positive but not significant effect on children education funds planning. Future time perspective has a positive and significant impact on financial literacy. Education has a negative and insignificant effect on financial literacy, while income has a positive and not significant effect. Financial literacy has succeeded in mediating the effect of future time perspective on children education funds planning, while financial literacy has not succeeded in mediating the effect of education and income on children education funds planning. While sociodemographic factors namely income has a positive but not significant effect on children education funds planning. Future time perspective has a positive and significant impact on financial literacy. Financial literacy has succeeded in mediating the effect of future time perspective on children education financial planning, while financial literacy has not succeeded in mediating the effect of education and income on children's education financial planning. while income has a positive and not significant effect. Financial literacy has succeeded in mediating the effect of future time perspective on children education funds planning, while financial literacy has not succeeded in mediating the effect of education and income on children education financial planning. Keywords: Future Time Perspective, Financial Risk Tolerance, Financial Literacy, Children Education Financial Planning, Indonesian Millennials 1. INTRODUCTION According to the 2018 survey, Indonesia is included in the top 15 countries with the most expensive education fees. (Detik.com, 2019). With an average tuition fee from elementary to undergraduate of US$ 18,422, or the equivalent of Rp. 257,908,000 (at an exchange rate of Rp. 14,000), Indonesia is ranked 13th in the survey. Whereas education for children is very important for their future. Education is even referred to as the basic capital to prepare quality human beings. That is why setting up a child's education fund is one of the important tasks of parents. Meanwhile, according to BPS on Data Indonesia (2022) shows that in 2022 there was an increase in the dropout rate in Indonesia at all levels of education. At the senior high school level the dropout rate is 1.38%. This means that 13 out of every 1,000 people drop out of school at the high school level.