MILLENNIALS: THEIR FINANCIAL LITERACY AND DECISION MAKING
DOI:
https://doi.org/10.31933/dijemss.v1i3.163Keywords:
Financial Literacy, Financial Decision Making, Personal FinanceAbstract
Millennials are now the largest population groupings in Indonesia, therefore their decisions in financial matters have significant implications for themselves as well as the country’s economy. This paper is aimed to evaluate the level of financial literacy possessed by the Millennials and their attitudes towards making key financial decisions. Data were collected through questionnaire of 30 questions with 15 questions regarding financial literacy and 15 questions related to financial decision making, with the participants in the study consists of 446 individuals who were born from 1980s to 2000s. The result reveals that better financial literacy leads to better financial decision at 1% significance level. This study also indicates that, although demographic profiles such as gender, education, length of working experience, income, number of credit card ownership and mother education have positive correlation with the level of financial literacy, they do not have moderating effect to the financial literacy and financial decision making of the millennials
References
Agarwalla, S. K., Barua, S. K., Jacob, J., & Varma, J. R. (2015). Financial literacy among working young in urban India. World Development, 67, 101-109.
Alessie, R. J., Van Rooij, M., & Lusardi, A. (2011). Financial literacy, retirement preparation and pension expectations in the Netherlands. Retrieved from
Ansong, A., & Gyensare, M. A. (2012). Determinants of university working-students’ financial literacy at the University of Cape Coast, Ghana. International Journal of Business and Management, 7(9), 126.
Bandura, A. (1986). Social foundation of thought and action: A social-cognitive view.
Englewood Cliffs.
Bhushan, P., & Medury, Y. (2014). An Empirical Analysis Of Inter Linkages Between Financial Attitudes, Financial Behaviour And Financial Knowledge Of Salaried Individuals. Indian Journal of Commerce and Management Studies, 5(3), 58-64.
Chen, H., & Volpe, R. P. (1998). An analysis of personal financial literacy among college students. Financial services review, 7(2), 107-128.
Cole, S. A., Sampson, T. A., & Zia, B. H. (2009). Financial literacy, financial decisions, and the demand for financial services: evidence from India and Indonesia: Harvard Business School Cambridge, MA.
Demirgüç-Kunt, A., & Klapper, L. (2013). Measuring financial inclusion: Explaining variation in use of financial services across and within countries. Brookings Papers on Economic Activity, 2013(1), 279-340.
Garman, E. T., Kim, J., Kratzer, C. Y., Brunson, B. H., & Joo, S.-h. (1999). Workplace financial education improves personal financial wellness. Financial Counseling and Planning, 10(1), 79-88.
Lusardi, A. (2009). Overcoming the saving slump: How to increase the effectiveness of financial education and saving programs: University of Chicago Press.
Lusardi, A., & Mitchell, O. S. (2007a). Baby boomer retirement security: The roles of planning, financial literacy, and housing wealth. Journal of monetary Economics, 54(1), 205-224.
Lusardi, A., & Mitchell, O. S. (2007b). Financial literacy and retirement planning: New evidence from the Rand American Life Panel. Michigan Retirement Research Center Research Paper No. WP, 157.
Lusardi, A., & Mitchell, O. S. (2011a). Financial literacy and planning: Implications for retirement wellbeing. Retrieved from
Lusardi, A., & Mitchell, O. S. (2011b). Financial literacy around the world: an overview.
Journal of Pension Economics and Finance, 10(04), 497-508.
Lusardi, A., & Mitchell, O. S. (2014). The Economic Importance of Financial Literacy: Theory and Evidence. Journal of Economic Literature, 52(1), 5-44. doi:http://www.aeaweb.org/jel/index.php
Lusardi, A., Mitchell, O. S., & Curto, V. (2010). Financial literacy among the young. Journal of Consumer Affairs, 44(2), 358-380.
Lusardi, A., & Mitchelli, O. (2007). Financial literacy and retirement preparedness: Evidence and implications for financial education. Business economics, 42(1), 35-44.
Lusardi, A., & Tufano, P. (2009). Debt literacy, financial experiences, and overindebtedness.
Retrieved from
Mavrinac, S. C., & Chin, W. P. (2004). Financial education for women in Asia Pacific. Oseifuah, E. K., & Gyekye, A. B. (2014). Analysis of the Level of Financial Literacy among
South African Undergraduate Students. Journal of Economics and Behavioral Studies, 6(3), 242.
Roy-Singh, R. (1990). Adult Literacy as Educational Process. Literacy Lessons.
Downloads
Published
How to Cite
Issue
Section
License
Authors who publish their manuscripts in this journal agree to the following conditions:
- The copyright on each article belongs to the author(s).
- The author acknowledges that the Dinasti International Journal of Education Management and Social Science (DIJEMSS) has the right to be the first to publish with a Creative Commons Attribution 4.0 International license (Attribution 4.0 International (CC BY 4.0).
- Authors can submit articles separately, arrange for the non-exclusive distribution of manuscripts that have been published in this journal into other versions (e.g., sent to the author's institutional repository, publication into books, etc.), by acknowledging that the manuscript has been published for the first time in the Dinasti International Journal of Education Management and Social Science (DIJEMSS).
