Antecedents Behavioral of The Millennial Generation Financial Management

Abstract

The purpose of this study is to uncover the antecedents of millennial generation financial management behavior with two important variables, namely financial knowledge and attitudes toward finance. The sampling technique is purposive, the sample used is 100 millennial generations. The sampling technique is by selecting respondents including the millennial generation, which was born in 1978-2000. The data source used is primary data obtained through the results of questionnaire collection to millennial generations. The technique for analyzing is the technical regression analysis using the WarpPLS software program. Testing is done by instrument test, feasibility of the model and finally testing the hypothesis. The results of the study show that financial knowledge influences the management behavior of millennial generation, financial attitudes influence the behavior of the financial management of millennial generations. So that it can be concluded that financial knowledge and attitudes towards finance are important antecedents of millennial generation financial management behavior because financial knowledge and financial attitudes influence the behavior of millennial generation financial management.

Identifying Financial Management Behavior in Millenial Generation

“…The generation millennial easier to obtain income but the other side, there is consumerism and difficult in balancing financial. For this reason, millennial generation knowledge is very important in financial management behavior (Kusani et al, 2019). Sutrisno & Permatasari's research (2020) shows that although the millennial generation has a wasteful lifestyle.…”

“…Financial management is inseparable from the development of technology, at the time of the industrial revolution 4.0, especially the millennial generation. Starting from payment instruments, fund transfers, and fundraising (Kusani et al, 2019). This millennial generation is in its productive age and dominates the Novita Junita: Identifying Financial Management … Indonesian population.…”

“…This millennial generation is in its productive age and dominates the Novita Junita: Identifying Financial Management … Indonesian population. This generation has characteristics such as prefer to make non-cash payments, online shopping, and like to spend money rather than save it (Kusani et al, 2019, Ida et al, 2020. The second difference with its previous generation is that a lot of use of high-cost alternative financial services, such as a loan for employees, prepaid debit cards, and mobile payments (Mottola, 2014).…”

“…Kim et al, (2015) show that the millennial generation has much broader knowledge than the previous generation such as retirement plans and personal savings, where this knowledge will change financial management behavior. It is not enough that having knowledge only, but must be followed by financial attitudes, namely one's assessment of finances, more towards ways of thinking, opinions, and assessments of individual finances that are applied through attitudes so that they can manage its finances (Kusani et al, 2019, Dwiastanti, 2017. Financial attitudes can shape the style or way people shopping, spending money, deposit, and save money (Siswanti & Halida, 2020).…”

“…They do not care about the additional fee like admin fees, transaction fees, the fee charged. The millennial generation itself has different characteristics from the previous generation, both in terms of expenditure and in terms of income, this is because this generation lives in a time when technology is developing so that knowledge, interaction, and attitudes become broader, so that the financial management of the millennial generation is different from other generations (Kusani et al, 2019). Based on the phenomena expressed, this study aims to identifying financial management behavior in Batam's millenial generation.…”