International Journal of Advanced Engineering Research and Science (IJAERS) [Vol-7, Issue-4, Apr- 2020] https://dx.doi.org/10.22161/ijaers.74.36 ISSN: 2349-6495(P) | 2456-1908(O) www.ijaers.com Page | 281 Financial Behavior of Indonesian Moslem Students Scholarship Recipients: The Role of Locus of Control and Financial Knowledge Rika Dwi Ayu Parmitasari 1 , Muslimin Kara 2 , Lince Bulutoding 3 , Zulfahmi Alwi 4 , Marwan Sriwijaya 5 1,2 Department of Management, Universitas Islam Negeri Alauddin Makassar, Indonesia 2 Department of Islamic Economics, Universitas Islam Negeri Alauddin Makassar, Indonesia 3 Department ofAccounting, Universitas Islam Negeri Alauddin Makassar, Indonesia 4 Department of Islamic Family Law, Universitas Islam Negeri Alauddin Makassar, Indonesia Abstract— In terms of financial, each individual has its own variables that determines their decision making. Based on the previous researches, individual financial behavior was impacted by internal factors of individual. Those internal factors are locus of control and financial knowledge. Those factors have role for individual in performing financially. This study aimed to determine the effect of locus of control and financial knowledge on financial behavior. This type of research was quantitative research. According to the level of clarity, this research used associative problem formulation. The sample in this study were 246 respondents. While the types of data used were primary and secondary data, with data collection techniques using a questionnaire. Data had passed the validity and reliability test before the process of data analysis. The data analysis technique used was the classic assumption test, multiple linear regression analysis, and hypothesis testing. Data passed all the requirements of classical assumption in order to proceed multiple regression analysis. The results of this study indicated that locus of control and financial knowledge simultaneously affected financial behavior. The results also showed that locus of control and financial knowledge partially affect financial behavior. Keywords— Financial Behavior, Financial Knowledge, Locus of Control. I. INTRODUCTION Indonesia is a developing country that has the fourth largest population in the world. With a large population, Indonesia must be able to be selective in choosing products or services offered by the market and smart in dealing with financial problems (Budiono, 2015). One way to address financial problems is how individuals especially youngsters control their personal financial spending. When expenses are continuous and unlimited in number, individuals will have difficulty controlling finances. This is important because financial difficulties and financial dissatisfaction in individuals can lead to stress and depression (Parmitasari, 2017). According to research conducted by the Indonesian Kadence International Institute, the result is that many Indonesians are in debt (Andrew and Nanik, 2013). Based on information from Financial Services Authority (OJK), the level of financial knowledge of Indonesian people is still low at 28% while Malaysia is 66%, Singapore reaches 98%, while Thailand reaches 73% (Kusuma, 2014). One of the factors causing low level of financial knowledge is the geographical condition of Indonesia, which is generally around 60% located in rural areas (Kusuma, 2014). A survey conducted by the Financial Services Authority (OJK) in 2013 showed that Indonesia is a country that has a low level of financial knowledge among the surrounding countries. Evidenced by the results of a national survey of financial knowledge conducted by the Financial Services Authority (OJK) in 2013 in 20 provinces with 8,000 respondents showed the level of financial literacy of the Indonesian people at 21.8% with a utilization rate of 59.7 percent (Financial Services Authority, 2016). With the lack of financial knowledge, people could act or behave wrongly and ultimately experience shortfalls. The large number of people who do not understand financially causes many people to suffer losses, either due to a decline in economic conditions and inflation or