Financial Literacy, Materialism and Financial Behavior

Arofah, Anastasia Anggarkusuma; Purwaningsih, Yunastiti; Indriayu, Mintasih

doi:10.18415/ijmmu.v5i4.171

Cited by 32 publications

(32 citation statements)

References 10 publications

(13 reference statements)

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“…The findings of this study support studies done by [32], [33], ([34] which state that financial literacy determines financial behavior. A study conducted by [32] stated that young people who really understand financial literacy will automatically have an impact on their financial behavior.…”

Section: The Effect Of Financial Literacy On Students' Financial Behaviorsupporting

confidence: 91%

“…A study conducted by [32] stated that young people who really understand financial literacy will automatically have an impact on their financial behavior. Students with high financial literacy have good financial behavior [33]. With the financial knowledge obtained, students will be helped in managing their personal finance so that they can avoid financial problems in the future.…”

Section: The Effect Of Financial Literacy On Students' Financial Behaviormentioning

confidence: 99%

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Effects of Indonesian Students’ Financial Literacy on Financial Behavior

Suyanto¹,

Setiawan²,

Rahmawati³

et al. 2021

Proceedings of the Sixth Padang International Conference on Economics Education, Economics, Business and Management, Accounting

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The purpose of the study is to evaluate the effect of financial literacy on Indonesian students' financial behavior. The data were collected using questionnaires. Respondents who participated in the study were 347 students collected using a convenience sampling method. Furthermore, the data were analyzed by applying linear regression using SPSS 18. The results show that financial literacy has a positive effect on the Indonesian students' financial behavior, meaning that good financial literacy can convince someone to make better decisions about finances related to the use of funds in terms of savings and loans, insurance, and investments.

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Section: The Effect Of Financial Literacy On Students' Financial Behaviorsupporting

confidence: 91%

Section: The Effect Of Financial Literacy On Students' Financial Behaviormentioning

confidence: 99%

Effects of Indonesian Students’ Financial Literacy on Financial Behavior

Suyanto¹,

Setiawan²,

Rahmawati³

et al. 2021

Proceedings of the Sixth Padang International Conference on Economics Education, Economics, Business and Management, Accounting

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show abstract

“…With financial literacy, it is expected that individuals can make financial budgets for their future as well as possible, which means that a high understanding of financial literacy will have a negative impact on materialism [8]. Lack of awareness of the importance of financial literacy can foster an attitude of materialism aimed at showing off their status or for the individual to be happy without thinking about long-term financial effects [15]. Materialism's attitude encourages individuals not to think about or consider the consequences first, which occur due to lack of financial literacy.…”

Section: Literature Reviewmentioning

confidence: 99%

Financial Literacy in Millenials Generation in Indonesia

Prashella¹,

Leon²

2020

Proceedings of the International Conference on Management, Accounting, and Economy (ICMAE 2020)

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This study aims to examine financial literacy in millennials in Indonesia. The dependent variable used in this study is a propensity for indebtness. The independent variable used is financial literacy as measured by financial behaviour, financial attitude and financial knowledge. Variables that act as independent dependent variables are materialism and compulsive buying. The sample of this study used 535 respondents who used a purposive sampling method. The data analysis model used is structural equation modelling (SEM). The results of this study indicate that financial literacy has a negative impact on propensity to indebtedness, materialism has a positive impact on compulsive buying, compulsive buying has a positive impact on propensity to indebtedness, materialism has a positive impact on compulsive buying, financial literacy has a negative impact on materialism and literacy finance has a positive impact on compulsive buying. Therefore, raising the level of financial literacy from an early age on individuals through financial education can lead a prosperous life and can be effective in minimizing negative behaviours such as compulsive buying, materialism, and propensity to indebtness. This research is unique and innovative in so far as measuring the direct impact of financial literacy is very influential on other factors such as compulsive buying, materialism, and propensity to indebtedness which is that financial literacy has a far more significant impact than shown by other academic studies, especially on the millennial generation in Indonesia.

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“…Islamic financial literacy is now becoming a popular research strand among scholars, marketers and policymaker. The concept of financial literacy has been studied by several researchers (Arofah, Purwaningsih, & Indriayu, 2018;Xiao, Ahn, Serido, & Shim, 2014). These scholars demonstrate that financial literacy could influence consumer decision in choosing a financial product.…”

Section: Islamic Financial Literacymentioning

confidence: 99%

Validating Islamic Financial Literacy Instruments among MUM Generation: Rasch Analysis Approach

Antara

Musa

2021

IJBS

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Islamic financial literacy is an emerging term which is increasingly used in research and policy. Though a study in this area is growing, there is a lack of an accepted method to measure Islamic financial literacy. This study aims to develop a valid and reliable instrument to access Islamic financial literacy among MUM (Muslim Urban Millennial) generations using Rasch analysis. A comprehensive literature review and a qualitative study were initially performed to identify the construct of Islamic financial literacy. A total of 109 respondents from MUM generation completed the 18-item instrument with multiple-choice questions. However, only 85 final sample out of 109 data measured after eliminating the person with the extreme score. The dimensionality of the items was evaluated using WINSTEPS 3.73. Results show that the measurements model is highly reliable with a reliability alpha of 0.87 and 0.96 for person and item, respectively. There is also six misfit item that needs to be reviewed or removed. Differential Item Functioning (DIF) analysis shows that three items have a bias between gender. Overall, the developed Islamic financial literacy scale is a validand reliable instrument to measure Islamic financial literacy in MUM generation. This measure lays a solid empirical and theoretical foundation for future research in Islamic financial literacy among the MUM generation.

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Financial Literacy, Materialism and Financial Behavior

Cited by 32 publications

References 10 publications

Effects of Indonesian Students’ Financial Literacy on Financial Behavior

Effects of Indonesian Students’ Financial Literacy on Financial Behavior

Financial Literacy in Millenials Generation in Indonesia

Validating Islamic Financial Literacy Instruments among MUM Generation: Rasch Analysis Approach

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