The Financial Behavior of Young Generation in Indonesia

Authors

  • Irma Kurniasari Management Department, Faculty of Economics and Business, University of Brawijaya, Indonesia
  • Sumiati Management Department, Faculty of Economics and Business, University of Brawijaya, Indonesia
  • Kusuma Ratnawati Management Department, Faculty of Economics and Business, University of Brawijaya, Indonesia

DOI:

https://doi.org/10.21776/ub.jiae.2023.011.02.3

Keywords:

Self-efficacy, financial management behavior, quantitative research

Abstract

Purpose

This study explored self-efficacy's link to student financial behavior, assessing its influence and dimensions. The aim was to improve financial literacy and behavior among students through interventions. The study deepened understanding of self-efficacy's role in university students' financial behavior.

Design/methodology/approach

In quantitative research, researchers employ SEM, specifically PLS, to examine self-efficacy and financial behavior in university students. The study has 100 student respondents and uses SEM-PLS for complex analysis, aiming to offer empirical evidence for hypotheses. Findings could significantly enrich comprehension of self-efficacy's influence on financial behavior in college students.

Finding

Results show a positive link between variables. Higher self-efficacy relates to improved financial behavior. Confident individuals budget, save, and make wise financial choices. This underscores the need to enhance self-efficacy in interventions for better student financial behavior. Overall, findings emphasize self-efficacy's pivotal role in shaping financial behavior.

Research limitations/implications

This study offers empirical evidence of a positive link between self-efficacy and financial behavior, broadening understanding. It highlights psychological factors in financial behavior and extends self-efficacy's role in financial management literature. Financial education programs should enhance self-efficacy for better financial management, benefiting students' overall well-being.

Originality/value

This research merges self-efficacy and financial behavior concepts, showcasing the link between psychological factors and financial actions. Combining these constructs provides a holistic view of how self-beliefs impact financial choices and behaviors.

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Published

2023-08-31

Issue

Vol. 11 No. 2 (2023): August 2023

Section

Articles

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