THE DETERMINANCE OF THE FINANCIAL BEHAVIOR AMONG GRADUATE STUDENTS IN INDONESIA
Keywords:
Financial Behavior, Self-Efficacy, Knowledge, Attitude.
Abstract
The lifestyle of adolescents who migrate to work and college will largely determine their future. Concerns about economic conditions can cause problems with their behavior. This research has aimed to explore the most influential factors on Financial Behavior among graduate students in Indonesia. The Primary data collected by distributing questionnaires using a Likert scale. There are 239 samples have collected based on the combination of purposive and convenience sampling methods. The study used descriptive statistical techniques and path analysis techniques for data analysis. Based on path analysis results, study findings indicate that there is a significant influence of financial knowledge on financial self-efficacy; financial self-efficacy and financial knowledge on financial behavior; financial attitude and financial self-efficacy on financial behavior but there is no significant influence of financial knowledge on financial behavior. The study results also showed that adolescent habits are still not good but can be improved through education such as character education and achievement of a better motivation to deal with economic problems. The study recommended that the good habits can be passed on to friends of his age, especially adolescents so they can have a good future.
JEL Classification Codes: F36, G02, A23.
References
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Sabri, M. F., & Zakaria, N. F. (2015). The Influence of Financial Literacy, Money Attitude, Financial Strain and Financial Capability on Young Employees’ Financial Well-being. Pertanika Journal of Social Sciences and Humanities, 23(4), 827–848.
Schwarzer, R., & Jerusalem, M. (1995). General Self-Efficacy Scale. Causal and Control Beliefs, 35–37.
Sekaran, U., & Bougie, R. (2016). Research Method for Business A Skill-Building Approach Seventh Edition (Seventh Ed). Chichester: John Wiley & Sons. https://doi.org/10.1007/978-94-007-0753-5_102084
Serido, J., Shim, S., & Tang, C. (2013). A Developmental Model of Financial Capability: A Framework for Promoting a Successful Transition to Adulthood. International Journal of Behavioral Development, 00(0), 1–11. https://doi.org/10.1177/0165025413479476
Streiner, D. L. (2005). Finding Our Way: An Introduction to Path Analysis. Canadian Journal of Psychiatry, 50(2), 115–122. https://doi.org/10.1177/070674370505000207
Susan, M. (2018). Financial Behavior and Problems Among College Student in Indonesia: the Role of Financial Knowledge. International Journal of Engineering & Technology, 7(3.25), 133–137. Retrieved from www.sciencepubco.com/index.php/IJET
Taherdoost, H. (2016). Validity and Reliability of the Research Instrument: How to Test the Validation of a Questionnaire/Survey in a Research. International Journal of Academic Research in Management (IJARM), 5(3), 28–36. https://doi.org/10.2139/ssrn.3205040
Weston, R., & Gore, P. A. J. (2006). A Brief Guide to Structural Equation Modeling. The Counseling Psychologist, 34(5), 719–751. https://doi.org/10.1177/0011000006286345
Yap, R. J. C., Komalasari, F., & Hadiansah, I. (2016). The Effect of Financial Literacy and Attitude on Financial Management Behavior and Satisfaction. International Journal of Administration Science & Organization, 23(3), 140–146. https://doi.org/10.20476/jbb.v23i3.9175
Yong, C.-C., Yew, S.-Y., & Wee, C.-K. (2018). Financial Knowledge Attitude and Behavior of Young Working Adults in Malaysia. Institutions and Economies, 10(4), 21–48. Retrieved from http://ijie.um.edu.my/index.php/ijie/article/view/13444
Ameliawati, M., & Setiyani, R. (2018). The Influence of Financial Attitude, Financial Socialization, and Financial Experience to Financial Management Behavior with Financial Literacy as the Mediation Variable. International Conference on Economics, Business and Economic Education 2018, KnE Social Sciences, 811–832. https://doi.org/10.18502/kss.v3i10.3174
Arifin, A. Z. (2017). The Influence of Financial Knowledge, Control and Income on Individual Financial Behavior. European Research Studies Journal, XX(3A), 635–648.
Arifin, A. Z. (2018). Influence Factors toward Financial Satisfaction with Financial Behavior as Intervening Variable on Jakarta Area Workforce. European Research Studies Journal, XXI(1), 90–103.
Faique, F. A., Ismail, S., Bakri, M. H., Idris, N. H., Yazid, Z. A., Daud, S., & Taib, N. M. (2017). Testing the Financial Attitude as a Mediator for the Relationship between Financial Self-Efficacy with Financial Behavior. Advanced Science Letters, 23(8), 8009–8012. https://doi.org/10.1166/asl.2017.9632
Falahati, L., Sabri, M. F., & Paim, L. H. J. (2012). Assessment a Model of Financial Satisfaction Predictors: Examining the Mediate Effect of Financial Behaviour and Financial Strain. World Applied Sciences Journal, 20(2), 190–197. https://doi.org/10.5829/idosi.wasj.2012.20.02.1832
Hafni, L., Renaldo, N., Chandra, T., & Thaief, I. (2020). The Use of Regression Models with Supply Chain Management to Increase Financial Satisfaction of Generation Z. International Journal of Supply Chain Management, 9(5), 1641–1650.
Herawati, N. T., Candiasa, I. M., Yadnyana, I. K., & Suharsono, N. (2018). Factors That Influence Financial Behavior Among Accounting Students in Bali. International Journal of Business Administration, 9(3), 30–38. https://doi.org/10.5430/ijba.v9n3p30
Ismail, S., Faique, F. A., Bakri, M. H., Zain, Z. M., Idris, N. H., Yazid, Z. A., … Taib, N. M. (2017). The Role of Financial Self-Efficacy Scale in Predicting Financial Behavior. Advanced Science Letters, 23(5), 4635–4639. https://doi.org/10.1166/asl.2017.8992
Joo, S., & Grable, J. E. (2004). An Exploratory Framework of the Determinants of Financial Satisfaction. Journal of Family and Economis Issues, 25(1), 25–50.
Kumar, S., Watung, C., N, J. E., & Luinata, L. (2017). The Influence of Financial Literacy Towards Financial Behavior and Its Implication on Financial Decisions: A Survey of President University Students in Cikarang - Bekasi. Firm Journal of Management Studies, 2(1), 169–179. Retrieved from http://e-journal.president.ac.id/presunivojs/index.php/FIRM-JOURNAL/article/view/158/87
Lown, J. M. (2011). Development and Validation of a Financial Self-efficacy Scale. Journal of Financial Counseling and Planning, 22(2), 54–63.
Mien, N. T. N., & Thao, T. P. (2015). Factors Affecting Personal Financial Management Behaviors: Evidence from Vietnam. In Proceedings of the Second Asia-Pasific Conference on Global Business, Economics, Finance and Social Sciences (AP15Vietnam Conference) (pp. 1–16). Danang-Vietnam. https://doi.org/10.1161/01.HYP.0000200705.61571.95
Potrich, A. C. G., Vieira, K. M., & Kirch, G. (2015). Determinants of Financial Literacy: Analysis of the Influence of Socioeconomic and Demographic Variables. Revista Contabilidade & Finanças, 26(69), 362–377. https://doi.org/10.1590/1808-057x201501040
Potrich, A. C. G., Vieira, K. M., & Mendes-Da-Silva, W. (2016). Development of a Financial Literacy Model for University Students. Management Research Review, 39(3), 356–376. https://doi.org/10.1108/MMR-06-2014-0143
Renaldo, N., Sudarno, & Hutahuruk, M. B. (2020). THE IMPROVEMENT OF GENERATION Z FINANCIAL WELL-BEING IN PEKANBARU. JURNAL MANAJEMEN DAN KEWIRAUSAHAAN, 22(2), 142–151. https://doi.org/10.9744/jmk.22.2.142-151
Sabri, M. F., Paim, L., Falahati, L., & Masud, J. (2013). Determinants of Employees’ Financial Well-Being: The Moderation Effect of Work Sectors. Malaysian Journal of Consumer and Family Economics, 16(July 2017), 91–106.
Sabri, M. F., & Zakaria, N. F. (2015). The Influence of Financial Literacy, Money Attitude, Financial Strain and Financial Capability on Young Employees’ Financial Well-being. Pertanika Journal of Social Sciences and Humanities, 23(4), 827–848.
Schwarzer, R., & Jerusalem, M. (1995). General Self-Efficacy Scale. Causal and Control Beliefs, 35–37.
Sekaran, U., & Bougie, R. (2016). Research Method for Business A Skill-Building Approach Seventh Edition (Seventh Ed). Chichester: John Wiley & Sons. https://doi.org/10.1007/978-94-007-0753-5_102084
Serido, J., Shim, S., & Tang, C. (2013). A Developmental Model of Financial Capability: A Framework for Promoting a Successful Transition to Adulthood. International Journal of Behavioral Development, 00(0), 1–11. https://doi.org/10.1177/0165025413479476
Streiner, D. L. (2005). Finding Our Way: An Introduction to Path Analysis. Canadian Journal of Psychiatry, 50(2), 115–122. https://doi.org/10.1177/070674370505000207
Susan, M. (2018). Financial Behavior and Problems Among College Student in Indonesia: the Role of Financial Knowledge. International Journal of Engineering & Technology, 7(3.25), 133–137. Retrieved from www.sciencepubco.com/index.php/IJET
Taherdoost, H. (2016). Validity and Reliability of the Research Instrument: How to Test the Validation of a Questionnaire/Survey in a Research. International Journal of Academic Research in Management (IJARM), 5(3), 28–36. https://doi.org/10.2139/ssrn.3205040
Weston, R., & Gore, P. A. J. (2006). A Brief Guide to Structural Equation Modeling. The Counseling Psychologist, 34(5), 719–751. https://doi.org/10.1177/0011000006286345
Yap, R. J. C., Komalasari, F., & Hadiansah, I. (2016). The Effect of Financial Literacy and Attitude on Financial Management Behavior and Satisfaction. International Journal of Administration Science & Organization, 23(3), 140–146. https://doi.org/10.20476/jbb.v23i3.9175
Yong, C.-C., Yew, S.-Y., & Wee, C.-K. (2018). Financial Knowledge Attitude and Behavior of Young Working Adults in Malaysia. Institutions and Economies, 10(4), 21–48. Retrieved from http://ijie.um.edu.my/index.php/ijie/article/view/13444
Published
2021-03-01
How to Cite
., N., Renaldo, N., Karuppannan, G., Bhuiyan, A. B., & Kumarasamy, M. M. (2021). THE DETERMINANCE OF THE FINANCIAL BEHAVIOR AMONG GRADUATE STUDENTS IN INDONESIA. Australian Finance & Banking Review, 5(1), 15-28. https://doi.org/10.46281/afbr.v5i1.1009
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Section
Original Articles/Short Communications
Copyright (c) 2021 Nyoto, Nicholas Renaldo, Gunasegaran Karuppannan, Abul Bashar Bhuiyan, Mokana Muthu Kumarasamy
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