Financial literacy and financial attitude on financial management behavior: An examination of the mediating role of the behavioral intention of students at private universities in Indonesia

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Financial Management Behavior refers to the systematic activities involved in predicting, gathering, allocating, investing, and strategizing the cash flow required for a company’s or individual’s efficient functioning. This study aims to examine the role of locus of control in moderating the relationship between financial socialization, financial knowledge, financial experience, and financial management behavior among Paylater users in Medan, North Sumatra, Indonesia. The population of this research is the people of Medan, North Sumatra, Indonesia, who use Paylater. The sampling methodologies utilized were purposive sampling and snowball sampling. A total of 221 individuals participated in data collection for this study. The questionnaires were disseminated using social media chat functions or messaging applications (e.g., WhatsApp, Line, Telegram) in which the Google Forms link is shared. The study employs the data analysis technique of SEM-PLS with the assistance of PLS 4.00 software. The research results show that financial socialization, knowledge, and experience influence financial management behavior (p &lt; 0.05). Furthermore, financial socialization, financial knowledge, and financial experience influence financial management behavior, moderated by locus of control (p &lt; 0.05). The research implications are expected to improve the Financial Management behavior of the Paylater users by providing literacy about managing their finances. AcknowledgmentThis study was funded by the Revenue and Expenditure Budget of the Universitas Muhammadiyah Sumatera Utara following the assignment agreement letter in the context of implementing the Basic Research Program of the Revenue and Expenditure Budget of the Universitas Muhammadiyah Sumatera Utara for the 2023 Fiscal Year, Number: 73/II.3- AU /UMSU-LP2M/C/2023.

Factors affecting financial management behavior of Paylater users in Indonesia: Examining the moderating role of locus of control

Gunawan,

Mukmin,

Fitri Wahyuni

et al. 2023

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Beyond age: Decoding the investment DNA of generations Z and Y in Indonesia

Chyntia Ovami,

Zurika Lubis,

Setiana

et al. 2024

Investment decisions are a matter of how individuals should allocate funds into investment forms that provide future benefits. This paper investigates the impact of financial literacy, perceptions of risk and returns, family background, income, and financial technology proficiency on investment decisions among Generations Z and Y in Indonesia. This study uses a quantitative approach, using primary data from 240 respondents through purposive sampling. Primary data were collected through a questionnaire survey to collect respondents’ perceptions and investment decisions. The Likert scale assesses indicators by eliciting responses to statements and questions. The Structural Equation Model Partial Least Square (SEM-PLS) approach was employed for analysis utilizing WarpPLS 8.0 software. The results show that financial literacy, risk and return perception, income, and fintech proficiency significantly influence investment decisions (p &lt; 0.05), while family background does not (p &gt; 0.05). In addition, fintech proficiency mediates the effects of financial literacy, risk perception, family background, and income on investment decisions (p &lt; 0.05). These findings suggest that improving financial literacy and fintech skills can lead to better investment decisions among young investors. This study highlights the need for targeted financial education programs and innovative fintech solutions to support informed investment choices. Further research is recommended to explore additional factors influencing investment decisions and to develop strategies to improve financial decision-making in this demographic group.

Smart investing: Unveiling key drivers of strategic investment for investors in the Indonesia Stock Exchange

Yanuarti Loebiantoro,

Hooi Cheng,

Annuar

2024

To achieve the optimal investment decision, people should have better financial literacy. A better understanding of stock investment can be obtained through having experience investing in the stock market. Besides experience, influences from financial socialization agents such as family, friends, education, and media will improve financial knowledge. Hence, it will determine investments wisely. The aim of this study is to determine the degree to which financial experience, family, peers, formal education, media, and financial literacy have direct on impact investment decisions and furthermore to determine the role of financial literacy as mediating variable between financial experience, family, peers, formal education, media, and investment decisions. Investors who have already registered on the Indonesia Stock Exchange are the respondents to this study. Only those investors are allowed to invest in the Indonesian stock market. There are 716 respondents who were analyzed using self-administered questionnaires and structural equation modeling (SmartPLS). Findings show that peers and financial literacy have a direct positive impact (p&lt;0.05) on investment decisions, while financial experience, family, education, and media do not (p&gt;0.05). Additionally, financial experience, peers, education, and media have a significant positive effect on financial literacy (p&lt;0.05), while family does not (p&gt;0.05). Financial literacy is shown to mediate the relationship between financial experience, peers, education, media, and investment decisions (p&lt;0.05) but not with family (p&gt;0.05). This implies that having financial experience improves financial literacy, which leads to better investment decisions. Furthermore, peers, education, and media all play an important role in increasing financial literacy to make optimal investment decisions. AcknowledgmentWe want to express our sincere gratitude to Universitas Multimedia Nusantara for providing the grant to support this project. Without the generous support, the successful completion of this project would not have been possible. Additionally, we extend our appreciation to the editors and reviewers for their valuable input, which significantly contributed to enhancing the quality of this paper.