Demographic, Financial Literacy, and Financial Behavior of Women Working in Manufacturing Industry

Abstract

The purpose of this study is to determine the effect of demographic factors and financial literacy on financial behavior of women working in manufacturing industry. Women are the targets of financial literacy due to their involvement in fulfilling the household needs and welfare. This research is quantitative research. Using the questionnaire on 115 respondents in this study from various manufacturing industries in Purbalingga with probability sampling as the technique. While the data analysis technique used Structural Equation Modelling (SEM) PLS 3.0. The findings show that, first, demographic factors contribute positively and significantly towards female workers’ financial behavior with original sample value 0.224 and t-value 2.420 > 1.96; second, financial literacy also contributes positively and significantly towards financial behavior with original sample value 0.256 and t-value 3.251 > 1.96. The higher the demographic factors of female workers, the better their financial management are. Likewise, students with low financial literacy tend to be able to hold back their urges to buy things and use services. Moreover, the significance of financial literacy and demographic factors has important implications for the development of policies that aim to improve financial behaviour among women working in financial education programs.

The Influence of Financial Literacy, Pocket Money, and Lifestyle on the Financial Behavior of College Students who Use Online Shopping Platforms

“…These research findings are consistent with studies conducted by (Arofah, 2019;Hidayat & Paramita, 2022;Humaidi, Khoirudin, Adinda, & Kautsar, 2020;Mutlu & Ozer, 2022;Panjaitan & Digdowiseiso, 2023;Pratama, Jasman, & Saharudin, 2022;Rohmanto & Susanti, 2021;Sukma & Pradana, 2022;Wahyudi, Tukan, & Pinem, 2020;Wiranti, Goso, & Halim, 2023) stating that financial literacy has a positive and significant influence on financial behavior.…”

“…Research conducted by (Arofah, 2019;Hidayat & Paramita, 2022;Humaidi, Khoirudin, Adinda, & Kautsar, 2020;Mutlu & Ozer, 2022;Panjaitan & Digdowiseiso, 2023;Pratama, Jasman, & Saharudin, 2022;Rohmanto & Susanti, 2021;Sukma & Pradana, 2022;Wahyudi, Tukan, & Pinem, 2020;Wiranti, Goso, & Halim, 2023) support the statement that financial literacy has a positive and significant effect on financial behavior. H1: Financial literacy positively and significantly affects the financial behavior of students who use online shopping platforms.…”

“…Several previous studies have revealed that financial literacy positively and significantly affects financial behavior. The results of research conducted by (Arofah, 2019;Hidayat & Paramita, 2022;Humaidi, Khoirudin, Adinda, & Kautsar, 2020;Mutlu & Ozer, 2022;Panjaitan & Digdowiseiso, 2023;Pratama, Jasman, & Saharudin, 2022;Rohmanto & Susanti, 2021;Sukma & Pradana, 2022;Wahyudi, Tukan, & Pinem, 2020;Wiranti, Goso, & Halim, 2023) state that financial literacy can influence financial behavior positively and significantly. However, contrary to research conducted by (Farida, Soesatyo, & Aji, 2021;Gunawan & Chairani, 2019;Purwidianti & Tubastuvi, 2019;Widyakto, Liyana, & Rinawati 2022) state that financial literacy does not influence financial behavior.…”

Determinants of the Financial Capability: The Mediating role of Financial Self-efficacy and Financial Inclusion

“…In a study with undergraduate students comprising the sample, Arofah (2019) found that a high level of self-efficacy is associated with more effective financial management. Other studies in a similar vein in reference specifically to financial self-efficacy and financial management affirm that the extent of a person's selfefficacy has a determinative relationship with the effectiveness of his/her financial behavior (Danes and Haberman, 2007;Farrell et al, 2016).…”

Locus of Control, Financial Knowledge, Financial Attitude, Financial Self-Efficacy, and Social Economic Status as Antecedents of Financial Management Behavior

“…Financial selfefficacy is one aspect developed from the theory of self-efficacy about positive beliefs in the ability to successfully manage personal finances appropriately. Research undertaken by earlier researchers, such as those by Arofah (2019) reveals a beneficial influence of financial selfefficacy on financial management behavior.…”