IMPROVING FINANCIAL BEHAVIOR OF MILLENNIAL GENERATION THROUGH ATTITUDE, KNOWLEDGE, AND CONFIDENCE DURING THE COVID-19 PANDEMIC

Aji Yudha, Elisa Martanti

Abstract


The COVID-19 pandemic has increased people's expenses, so good knowledge in managing finances is needed. The millennial generation is one of the community groups known to be consumptive and have a low level of financial literacy. Whether or not financial management is good is based on the level of community financial literacy. That indicates that the better people's financial literacy, the better they will manage finances. Financial literacy consists of financial behavior, financial attitude, financial knowledge, and financial confidence. Therefore, this study examines the relationship between financial attitude, financial knowledge, and financial confidence in financial behavior. This study also establishes a comprehensive financial literacy model to increase financial literacy during the COVID-19 pandemic. Lastly, this study contributes to the literature developing a financial literacy model for millennials in small towns. This study involved 146 respondents from the millennial generation in Rembang City. Testing was carried out using SEM GeSCA. The results indicated that the factors that directly affect financial behavior are financial attitude and financial confidence. Financial knowledge was found to influence financial behavior indirectly. However, the study results revealed that financial knowledge does not directly affect financial behavior. Future studies can add new variables with a larger sample to obtain more general results.


Keywords


Financial Literacy; Financial Attitude; Financial Knowledge; Financial Confidence; Financial Behavior; Millennials

Full Text:

PDF

References


Ajzen, I. 1991. The Theory of Planned Behavior. Organizational Behavior and Human Decision Processes, 50(2), pp. 179–211. doi:10.1016/0749-5978(91)90020-T.

Akben-Selcuk, E. 2015. Factors Influencing College Students' Financial Behaviors in Turkey: Evidence from a National Survey. International Journal of Economics and Finance, 7(6), pp. 87–95. doi:10.5539/ijef.v7n6p87.

Aydin, A. E. and Akben Selcuk, E. 2019. An Investigation of Financial Literacy, Money Ethics, and Time Preferences Among College Students: A Structural Equation Model. International Journal of Bank Marketing, 37(3), pp. 880–900. doi:10.1108/IJBM-05-2018-0120.

Babiarz, P. and Robb, C. A. 2013. Financial Literacy and Emergency Saving. Journal of Family and Economic Issues, pp. 1–11. doi:10.1007/s10834-013-9369-9.

Bapat, D. 2020. Antecedents to Responsible Financial Management Behavior Among Young Adults: Moderating Role of Financial Risk Tolerance. International Journal of Bank Marketing, 38(5), pp. 1177–1194. doi:10.1108/IJBM-10-2019-0356.

Barber, B. M. and Odean, T. 2000. Trading Is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. The Journal of Finance, 55(2), pp. 773–806. doi:10.2139/ssrn.219228.

Bhushan, P. and Medury, Y. 2014. An Empirical Analysis of Inter Linkages Between Financial Attitudes, Financial Behaviour and Financial Knowledge of Salaried Individuals. Indian Journal of Commerce and Management Studies, 5(3)(September), pp. 58–64.

Chhatwani, M. and Mishra, S. K. 2021. Does Financial Literacy Reduce Financial Fragility During COVID-19? The Moderation Effect of Psychological, Economic, and Social Factors. International Journal of Bank Marketing, 39(7), pp. 1114–1133. doi:10.1108/IJBM-11-2020-0536.

Çoşkun, A. and Dalziel, N. 2020. Mediation Effect of Financial Attitude on Financial Knowledge and Financial Behavior. International Journal of Research in Business and Social Science (2147- 4478), 9(2), pp. 01–08. doi:10.20525/ijrbs.v9i2.647.

Danes, S. and Haberman, H. 2007. Teen Financial Knowledge, Self-Efficacy, and Behavior: A Gendered View. Financial Counseling and Planning, 18(2), pp. 48–60. Available at: http://papers.ssrn.com/sol3/Delivery.cfm?abstractid=2228406.

Daniel, K. and Titman, S. 2006. Market Efficiency in an Irrational World. doi:10.2469/faj.v55.n6.2312.

Disney, R. and Gathergood, J. 2013. Financial Literacy and Consumer Credit Portfolios. Journal of Banking and Finance, 37(7), pp. 2246–2254. doi:10.1016/j.jbankfin.2013.01.013.

Garg, N. and Singh, S. 2018. Financial literacy among youth. International Journal of Social Economics, 45(1), pp. 173–186. doi:10.1108/IJSE-11-2016-0303.

Gupta, R., Nair, K., and Radhakrishnan, L. 2021. Impact of COVID-19 Crisis on Stocking and Impulse Buying Behaviour of Consumers. International Journal of Social Economics [Preprint]. doi:10.1108/IJSE-03-2021-0163.

Hidayatullah, S., Waris, A., and Devianti, R.C. 2018. Perilaku Generasi Milenial dalam Menggunakan Aplikasi Go-Food. Jurnal Manajemen Dan Kewirausahaan, 6(2), pp. 240–249. doi:10.26905/jmdk.v6i2.2560.

Jariwala, H. V. and Sharma, M. S. 2013. Assessment of Behavioural Outcomes of Financial Education Workshops on Financial Behaviour of The Participants: An Experimental Study. Journal of Financial Services Marketing, 18(3), pp. 241–256. doi:10.1057/fsm.2013.17.

Karakara, A. A. W., Sebu, J., and Dasmani, I. 2021. Financial Literacy, Financial Distress, and Socioeconomic Characteristics of Individuals in Ghana. African Journal of Economic and Management Studies [Preprint]. doi:10.1108/AJEMS-03-2021-0101.

Kumar, R. and Abdin, M. S. 2021. Impact of Epidemics and Pandemics on Consumption Pattern: Evidence From Covid-19 Pandemic in Rural-Urban India. Asian Journal of Economics and Banking, 5(1), pp. 2–14. doi:10.1108/ajeb-12-2020-0109.

Laili Rizkiawati, N. And Asandimitra Haryono, N. 2018. Pengaruh Demografi, Financial Knowledge, Financial Attitude, Locus of Control Dan Financial Self-Efficacy Terhadap Financial Management Behavior Masyarakat Surabaya. Jurnal Ilmu Manajemen (JIM), 6(3).

Marinković, V. and Lazarević, J. 2021. Eating Habits and Consumer Food Shopping Behaviour During COVID-19 Virus Pandemic: Insights from Serbia. British Food Journal [Preprint]. doi:10.1108/BFJ-11-2020-1072.

Mimura, Y., Koonce, J., Plunkett, S. and Pleskus, L. 2015. Financial Information Source, Knowledge, and Practices of College Students from Diverse Backgrounds. 26(1), pp. 63–78.

Ningtyas, M. N. 2019. Literasi Keuangan pada Generasi Milenial. Jurnal Ilmiah Bisnis dan Ekonomi Asia, 13(1), pp. 20–27. doi:10.32812/jibeka.v13i1.111.

Pal, A., Indapurkar, K., and Gupta, K.P. 2021. Gamification of Financial Applications and Financial Behavior of Young Investors. Young Consumers, 22(3), pp. 503–519. doi:10.1108/YC-10-2020-1240.

Rai, K., Dua, S., and Yadav, M. 2019. Association of Financial Attitude, Financial Behaviour, and Financial Knowledge Towards Financial Literacy: A Structural Equation Modeling Approach. FIIB Business Review, 8(1), pp. 51–60. doi:10.1177/2319714519826651.

Ramalho, T. B. and Forte, D. 2019. Financial Literacy in Brazil – do Knowledge and Self-Confidence Relate With Behavior?. RAUSP Management Journal, 54(1), pp. 77–95. doi:10.1108/RAUSP-04-2018-0008.

Robb, C. A. 2011. Financial Knowledge and Credit Card Behavior of College Students. Journal of Family and Economic Issues, 32(4), pp. 690–698. doi:10.1007/s10834-011-9259-y.

Robb, C. A. and Woodyard, A. S. 2011. Financial Knowledge and Best Practice Behavior. Journal of Financial Counseling and Planning, (205), pp. 60–70.

Rossolov, A., Kuzkin, O., and Rossolova, H. 2021. Emergency Supplies Purchase Patterns During COVID-19 Outbreak in The Developing Economy: Frequency and Stockpiling Drivers' Assessment. Journal of Humanitarian Logistics and Supply Chain Management [Preprint]. doi:10.1108/JHLSCM-02-2021-0016.

She, L., Rasiah, R., Turner, J., Guptan, V., and Sharif Nia, H. 2021. Psychological Beliefs and Financial Well-Being Among Working Adults: The Mediating Role of Financial Behaviour. International Journal of Social Economics [Preprint]. doi:10.1108/IJSE-07-2021-0389.

Shih, T. and Ke, S. 2014. Determinates of Financial Behavior: Insights Into Consumer Money Attitudes and Financial Literacy. Service Business, 8(2), pp. 217–238. doi:10.1016-j.jebo.2012.08.011r10.1007-s10551-012-1334-2. Singhapakdi A, Vitell SJ, Lee DJ, Nisius AM, Yu GBrhttp://dx.doi.org/10.1007/s11628-013-0194-x.

Tokar, C. 2015. Financial Literacy and Financial Behavior : Assessing Knowledge and Confidence. Financial Services Review, 24, pp. 101–117.

Zvaríková, K. and Majerová, J. 2014. Financial Literacy in the Slovak Republic. Procedia - Social and Behavioral Sciences, 110, pp. 1106–1115. doi:10.1016/j.sbspro.2013.12.957.




DOI: http://dx.doi.org/10.21776/ub.jam.2022.020.01.19

Refbacks

  • There are currently no refbacks.