Investment Education and Counseling

Oct 13, 2025 by talynt.org 18 views

Investment Knowledge, Risk Perception, and Investment Motivation: Unlocking the Secrets to Attracting Students to the Capital Market

Introduction

Investing in the capital market is a crucial aspect of financial planning, allowing individuals to grow their assets and secure their financial future. However, not everyone is equally interested in investing, and this is particularly true among students. The Faculty of Economics and Business at the University of North Sumatra is no exception, with many students showing little interest in investing in the capital market. This study aims to investigate the factors that influence the interest of students in investing in the capital market, with a focus on investment knowledge, risk perception, investment capital, and investment motivation.

The Importance of Investment Knowledge

Investment knowledge is a critical factor in determining an individual's interest in investing in the capital market. It refers to the understanding and information that students have about various investment instruments in the capital market. Students with a better understanding of investment instruments are more likely to be interested in investing, as they are aware of the potential benefits and risks associated with each instrument. In contrast, students with limited investment knowledge may be hesitant to invest, due to a lack of understanding of the investment process.

The Role of Risk Perception

Risk perception is another crucial factor that influences an individual's interest in investing in the capital market. It refers to the way students assess the potential risks associated with the investment they choose. Students who have a realistic risk perception are more likely to be interested in investing, as they are aware of the potential risks and are able to manage them effectively. In contrast, students who have an unrealistic risk perception may be hesitant to invest, due to a fear of losses.

The Impact of Investment Capital

Investment capital is also a critical factor that influences an individual's interest in investing in the capital market. It refers to the amount of money that is willing to be invested by students. Students who have a larger investment capital are more likely to be interested in investing, as they have the financial resources to take on investment risks. In contrast, students who have limited investment capital may be hesitant to invest, due to a lack of financial resources.

The Power of Investment Motivation

Investment motivation is the final factor that influences an individual's interest in investing in the capital market. It refers to the reasons that encourage students to invest. Students who are motivated to invest are more likely to be interested in investing, as they have a clear understanding of the benefits of investing and are willing to take on investment risks. In contrast, students who are not motivated to invest may be hesitant to invest, due to a lack of interest in financial planning.

Research Methodology

This study used a quantitative approach to investigate the factors that influence the interest of students in investing in the capital market. The population studied consisted of 598 students of the Faculty of Economics and Business in 2017. Data analysis was carried out using multiple linear regression to test the effect of each variable on investment interest.

Research Results

The results of this study showed that the variables studied, namely investment knowledge, risk perception, investment capital, and investment motivation, each had a positive and significant influence on the interest of students to invest in the capital market. That is, the higher the investment knowledge that is owned, the better the risk perception, the greater the available capital, and the higher the investment motivation, the greater the interest of students to invest.

Analysis and Implications

In-depth analysis of the results of this study provides some important implications. First, the importance of education and counseling regarding investment for students. By increasing investment knowledge, students can make better and smart decisions in the capital market. Second, realistic risk perception is also very necessary, because many students may feel reluctant to invest for fear of losses. Therefore, counseling about risk management in investment is very important.

Investment capital is also a crucial factor in attracting students. Programs that facilitate students with initial capital, such as investment competitions with prizes, can be a solution to encourage their participation. Finally, investment motivation can be influenced through the delivery of information about the benefits of investing, both in the short and long term.

Conclusion

This study provides a clear picture of the factors that influence the interest of students of the Faculty of Economics and Business, University of North Sumatra to invest in the capital market. With a better understanding of the effect of investment knowledge, risk perceptions, investment capital, and investment motivation, the university and related institutions can be more effective in designing appropriate education and counseling programs to increase investment interest in students. This effort is not only beneficial for individual students, but can also have a positive impact on the economy as a whole.

Recommendations

Based on the findings of this study, the following recommendations are made:

Investment Education and Counseling: The university should provide investment education and counseling programs for students to increase their investment knowledge and risk perception.
Investment Competitions: The university should organize investment competitions with prizes to facilitate students with initial capital and encourage their participation.
Investment Motivation: The university should deliver information about the benefits of investing, both in the short and long term, to motivate students to invest.
Risk Management: The university should provide counseling about risk management in investment to help students manage their investment risks effectively.

By implementing these recommendations, the university can increase the interest of students in investing in the capital market, which can have a positive impact on the economy as a whole.
Frequently Asked Questions: Investment Knowledge, Risk Perception, and Investment Motivation

Q: What is investment knowledge, and why is it important?

A: Investment knowledge refers to the understanding and information that students have about various investment instruments in the capital market. It is essential because students with a better understanding of investment instruments are more likely to be interested in investing, as they are aware of the potential benefits and risks associated with each instrument.

Q: How can students improve their investment knowledge?

A: Students can improve their investment knowledge by attending investment education and counseling programs, reading books and articles about investing, and seeking advice from financial advisors.

Q: What is risk perception, and how does it affect investment interest?

A: Risk perception refers to the way students assess the potential risks associated with the investment they choose. Students who have a realistic risk perception are more likely to be interested in investing, as they are aware of the potential risks and are able to manage them effectively.

Q: How can students manage their risk perception?

A: Students can manage their risk perception by seeking advice from financial advisors, conducting thorough research on investment instruments, and setting clear investment goals.

Q: What is investment capital, and how does it affect investment interest?

A: Investment capital refers to the amount of money that is willing to be invested by students. Students who have a larger investment capital are more likely to be interested in investing, as they have the financial resources to take on investment risks.

Q: How can students increase their investment capital?

A: Students can increase their investment capital by saving money, investing in a diversified portfolio, and seeking advice from financial advisors.

Q: What is investment motivation, and how does it affect investment interest?

A: Investment motivation refers to the reasons that encourage students to invest. Students who are motivated to invest are more likely to be interested in investing, as they have a clear understanding of the benefits of investing and are willing to take on investment risks.

Q: How can students increase their investment motivation?

A: Students can increase their investment motivation by setting clear investment goals, seeking advice from financial advisors, and delivering information about the benefits of investing.

Q: What are the implications of this study for the university and related institutions?

A: The university and related institutions can be more effective in designing appropriate education and counseling programs to increase investment interest in students. This effort is not only beneficial for individual students, but can also have a positive impact on the economy as a whole.

Q: What are the limitations of this study?

A: This study has several limitations, including the use of a quantitative approach, the sample size, and the generalizability of the findings to other populations.

Q: What are the future research directions?

A: Future research directions include investigating the impact of other factors on investment interest, such as demographic characteristics and socioeconomic status, and exploring the effectiveness of different education and counseling programs in increasing investment interest.

Q: What are the practical implications of this study for students?

A: The practical implications of this study for students include the importance of investing in their financial future, the need to increase their investment knowledge and risk perception, and the importance of setting clear investment goals and seeking advice from financial advisors.

Q: What are the policy implications of this study for the university and related institutions?

A: The policy implications of this study for the university and related institutions include the need to provide investment education and counseling programs, the importance of delivering information about the benefits of investing, and the need to facilitate students with initial capital.