Identifying the effects of financial literacy on student achievement in mathematics

Quality education is critical to produce a quality generation of the country. However, the quality of Indonesian education is still lagging behind other countries. An analysis is needed to identify student and school factors that affect student achievement. In this study, the student factors were financial literacy ability and parents' educational background. Meanwhile, the school factors were accreditation scores. The data used in this study is the data of Indonesian Student Competency Assessment (AKSI) which is an education monitoring program through a survey using the Multistage Probability Sampling method. Since the data has a hierarchical structure, multiple regression analysis will produce biased parameter estimates. Therefore, multilevel regression analysis was used in the study to solve that problem. The random slope model with interaction is the best multilevel regression model for this study. The quality of schools as described by accreditation scores and students 'abilities in financial literacy, such as students' attitudes before buying goods, the ability of finance, and the intensity in taking financial action have a significant effect on student achievement in mathematics. The educational background of parents also has a significant effect on student achievement. The effect of these variables differs between schools due to the accreditation score of each school.