Investigation Impact Literacy Finance and Socialization Financial to Satisfaction Finance Through Attitude Risk Finance: Perspective Generation Millennials

Nurhaeni Nurhaeni, Kumba Digdowiseiso

Abstract


This study investigates the impact of financial literacy and financial socialization on financial satisfaction through financial risk attitudes. Researchers collected data from 240 respondents in the age group 24 – 39 years through a web-based independent questionnaire. Data were analyzed using Structural Equation Modeling (SEM) with Stata 14 for hypothesis testing. The research results show that financial literacy has a positive and significant effect on financial satisfaction; while financial socialization has no significant effect on financial satisfaction. Financial risk attitudes have a significant positive effect on facilitating the relationship between financial literacy and financial satisfaction. Financial risk attitudes also have a significant positive effect on moderating financial literacy and financial socialization on financial satisfaction. The findings of this research contribute to the financial satisfaction literature and encourage the successful delivery of financial services to the millennial generation, followed by recommendations for providing financial literacy for individuals. The results of this research can also be a reference for developing public policy.


References


Adiputra, IG (2021). The Influence of Financial Literacy, Financial Attitude and Locus of Control on Financial Satisfaction: Evidence from the Community in Jakarta. KnE Social Sciences. https://doi.org/10.18502/kss.v5i5.8848

Albeerdy, M. I., & Gharleghi, B. (2015). Determinants of the Financial Literacy among College Students in Malaysia. International Journal of Business Administration, 6 (3). https://doi.org/10.5430/ijba.v6n3p15

Ali, A., Rahman, MSA, & Bakar, A. (2015). Financial Satisfaction and the Influence of Financial Literacy in Malaysia. Social Indicators Research, 120 (1), 137–156. https://doi.org/10.1007/s11205-014-0583-0

Anshika, Singla, A., & Mallik, G. (2021). Determinants of financial literacy: Empirical evidence from micro and small enterprises in India. Asia Pacific Management Review, 26 (4), 248–255. https://doi.org/10.1016/j.apmrv.2021.03.001

Boehm, J. K., Chen, Y., Williams, D. R., Ryff, C. D., & Kubzansky, L. D. (2016). Subjective well-being and cardiometabolic health: An 8 - 11 years study of midlife adults. Journal of Psychosomatic Research, 85, 1–8. https://doi.org/10.1016/j.jpsychores.2016.03.018

Chow, YP, Muhammad, J., Amin Noordin, BA, & Cheng, FF (2018). Macroeconomic dataset for generating macroeconomic volatility among selected countries in the Asia Pacific region. Data in Brief, 16, 23–28. https://doi.org/10.1016/j.dib.2017.11.015

Çoşkun, A., & Dalziel, N. (2020). Mediation effect of financial attitude on financial knowledge and financial behavior. International Journal of Research in Business and Social Science (2147- 4478), 9 (2), 01–08. https://doi.org/10.20525/ijrbs.v9i2.647

Coşkuner, S. (2017). Linking Financial Management Practices to Financial Literacy: Evidence from Turkey. International Journal of Scientific & Engineering Research, 8 (12), 1214–1220. https://doi.org/10.14299/ijser.2017.12.001

DAT, K. (2020). The Impact of Financial Literacy on Investment Decisions: With Special Reference to Undergraduates in Western Province, Sri Lanka. Asian Journal of Contemporary Education, 4 (2), 110–126. https://doi.org/10.18488/journal.137.2020.42.110.126

de Bruijn, E. J., Antonides, G., & Madern, T. (2022). A behaviorally informed financial education program for the financially vulnerable: Design and effectiveness. Frontiers in Psychology, 13. https://doi.org/10.3389/fpsyg.2022.1090024

Falahati, L., Sabri, M. F., & Paim, L. H. J. (2012). Assessment of a model of financial satisfaction predictors: Examining the mediating effect of financial behavior and financial strain. World Applied Sciences Journal, 20 (2), 190–197. https://doi.org/10.5829/idosi.wasj.2012.20.02.1832

Fan, L., & Henager, R. (2022). A Structural Determinants Framework for Financial Well-Being. Journal of Family and Economic Issues, 43 (2), 415–428. https://doi.org/10.1007/s10834-021-09798-w

Gharleghi, B., Jahanshahi, A. A., & Nawaser, K. (2018). The outcomes of corporate social responsibility to employees: Empirical evidence from a developing country. Sustainability (Switzerland), 10 (3). https://doi.org/10.3390/su10030698

Gleißner, W., Günther, T., & Walkshäusl, C. (2022). Financial sustainability: measurement and empirical evidence. Journal of Business Economics, 92 (3), 467–516. https://doi.org/10.1007/s11573-022-01081-0

Gudmunson, C. G., & Danes, S. M. (2011). Family Financial Socialization: Theory and Critical Review. In Journal of Family and Economic Issues (Vol. 32, Issue 4, pp. 644–667). https://doi.org/10.1007/s10834-011-9275-y

Hastings, P.D. (2018). The socialization of emotions by parents: Following Saarni's legacy. European Journal of Developmental Psychology, 15 (6), 694–710. https://doi.org/10.1080/17405629.2018.1482210

Hermansson, C., & Jonsson, S. (2021). The impact of financial literacy and financial interest on risk tolerance. Journal of Behavioral and Experimental Finance, 29. https://doi.org/10.1016/j.jbef.2020.100450

Hounmenou, C. (2011). Striving to Save: Creating Policies for Financial Security of Low-Income Families, by Sherraden, MS, & McBride, AM, with Beverly, SG Journal of Community Practice, 19 (2), 193–195. https://doi.org/10.1080/10705422.2011.569277

Jdaitawi, M., Rasheed, A., Gohari, M., Raddy, Y., Aydin, M., Abas, A., Hasan, A., & Khatiry, A. (2020). The Determinants of Leisure Attitudes: Mediating Effect of Self-Efficacy among Students from Science, Engineering and Medicine Colleges. Journal of Turkish Science Education, 17 (2), 242–252. https://doi.org/10.36681/tused.2020.24

Joo, S. H., & Grable, J. E. (2004). An exploratory framework of the determinants of financial satisfaction. Journal of Family and Economic Issues, 25 (1), 25–50. https://doi.org/10.1023/B:JEEI.0000016722.37994.9f

Jorgensen, B.L., & Savla, J. (nd). Financial Literacy of Young Adults: The Importance of Parental Socialization. https://doi.org/10.2307/40864565

Khan, K. A., Çera, G., & Alves, S. R. P. (2022). Financial Capability as a Function of Financial Literacy, Financial Advice, And Financial Satisfaction. E a M: Economy a Management, 25 (1), 143–160. https://doi.org/10.15240/tul/001/2022-1-009

Vivian Patricia Kartika Nuringsih (2022a). Behavioral Roles Finance in Shaping Sustainability Satisfaction Financial Among them Millennials in Jakarta.

Lam, H.K.S. (2018). Doing good across organizational boundaries: Sustainable supply chain practices and firms' financial risk.

International Journal of Operations and Production Management, 38 (12), 2389–2412. https://doi.org/10.1108/IJOPM-02-2018-0056

LeBaron, AB, Holmes, E.K., Jorgensen, B.L., & Bean, R.A. (2020). Parental Financial Education During Childhood and Financial Behaviors of Emerging Adults. Journal of Financial Counseling and Planning, JFCP-18-00021. https://doi.org/10.1891/jfcp-18-00021

LeBaron, A.B., & Kelley, H.H. (2021). Financial Socialization: A Decade in Review. In Journal of Family and Economic Issues (Vol. 42, pp. 195–206). Springer. https://doi.org/10.1007/s10834-020-09736-2

Lusardi, A. (2019a). Financial literacy and the need for financial education: evidence and implications. Swiss Journal of Economics and Statistics, 155 (1). https://doi.org/10.1186/s41937-019-0027-5

Lusardi, A. (2019b). Financial literacy and the need for financial education: evidence and implications. Swiss Journal of Economics and Statistics, 155 (1). https://doi.org/10.1186/s41937-019-0027-5

Madinga, N.W., Maziriri, E.T., Chuchu, T., & Magoda, Z. (2022). An Investigation of the Impact of Financial Literacy and Financial Socialization on Financial Satisfaction: Mediating Role of Financial Risk Attitude. Global Journal of Emerging Market Economies, 14 (1), 60–75. https://doi.org/10.1177/09749101211070952

Maziriri, E.T., Mapuranga, M., & Madinga, N.W. (2019). Navigating selected perceived risk elements on investor trust and intention to invest in online trading platforms. Journal of Economic and Financial Sciences, 12 (1). https://doi.org/10.4102/jef.v12i1.434

Morgan, P. J., & Trinh, L. Q. (2019). Determinants and Impacts of Financial Literacy in Cambodia and Viet Nam. Journal of Risk and Financial Management, 12 (1). https://doi.org/10.3390/jrfm12010019

Nabila Andre, M., Dharmawan Buchdadi, A., & Fawaiq, M. (2023). Influencing Factors Satisfaction Finance on Users Digital Wallets (Issue 4).

Ng, I., Janio Wijaya, A., Quinn, F., & Winata Lie, H. (2022a). Financial Literacy towards Financial Satisfaction: The Role of Financial Risk Attitude as Variable Mediation. JAMBURA, 6 (2). http://ejurnal.ung.ac.id/index.php/JIMB

Ng, I., Janio Wijaya, A., Quinn, F., & Winata Lie, H. (2022b). Financial Literacy towards Financial Satisfaction: The Role of Financial Risk Attitude as Variable Mediation. JAMBURA, 6 (2). http://ejurnal.ung.ac.id/index.php/JIMB

Obaid, H. J., Hama, K. N. K., & Yasir, M. H. (2023). The Role of Financial Literacy in Achieving Financial Satisfaction Through Financial Well-Being. International Journal of Professional Business Review, 8 (7), e01607. https://doi.org/10.26668/businessreview/2023.v8i7.1607

Okello Candiya Bongomin, G., Munene, J.C., Ntayi Mpeera, J., & Malinga Akol, C. (2017). Financial inclusion in rural Uganda: The role of social capital and generational values. Cogent Business and Management, 4 (1). https://doi.org/10.1080/23311975.2017.1302866

Pahlevan Sharif, S., & Naghavi, N. (2020). Family financial socialization, financial information seeking behavior and financial literacy among youth. Asia-Pacific Journal of Business Administration, 12 (2), 163–181. https://doi.org/10.1108/APJBA-09-2019-0196

Plagnol, A. C. (2011). Financial satisfaction over the life course: The influence of assets and liabilities. Journal of Economic Psychology, 32 (1), 45–64. https://doi.org/10.1016/j.joep.2010.10.006

Prabowo, MS, & Asandimitra, N. (nd). FACTORS AFFECTING FINANCIAL SATISFACTION OF E-COMMERCE USERS IN SURABAYA. In Journal Knowledge Management (Vol. 9).

Rohania, N. (2021). The Effects of Financial Knowledge and Financial Socialization on Financial Satisfaction: The Role of Attitude towards Financial Risk and Financial Behavior. In The Effects of Financial Knowledge and Financial Socialization on Financial Satisfaction … (Vol. 6, Issue 23).

Sarstedt, M., Ringle, C. M., & Hair, J. F. (2021). Partial Least Squares Structural Equation Modeling. In Handbook of Market Research (pp. 1–47). Springer International Publishing. https://doi.org/10.1007/978-3-319-05542-8_15-2

Singh, C., & Kumar, R. (2017). Financial Literacy among Women - Indian Scenario. Universal Journal of Accounting and Finance, 5 (2), 46–53. https://doi.org/10.13189/ujaf.2017.050202

Sorgente, A., Zambelli, M., & Lanz, M. (2023). Are Financial Well-Being and Financial Stress the Same Construct? Insights from an Intensive Longitudinal Study. Social Indicators Research, 169 (1–2), 553–573. https://doi.org/10.1007/s11205-023-03171-0

Talwar, M., Talwar, S., Kaur, P., Tripathy, N., & Dhir, A. (2021). Has financial attitude impacted the trading activity of retail investors during the COVID-19 pandemic? Journal of Retailing and Consumer Services, 58. https://doi.org/10.1016/j.jretconser.2020.102341

Vera-Toscano, E., Ateca -Amestoy, V., & Serrano-del-Rosal, R. (2006). Building financial satisfaction. Social Indicators Research, 77 (2), 211–243. https://doi.org/10.1007/s11205-005-2614-3

Wahab, A., Aprilla, IR, & Mulia, A. (nd). DETERMINANTS OF FINANCIAL SATISFACTION OF UMKM ACTORS.

Wang, G., & Olsen, J. E. (2002). Knowledge, Performance, and Exporter Satisfaction: An Exploratory Study. Journal of Global Marketing, 15 (3–4), 39–64. https://doi.org/10.1300/J042v15n03_03

Ward, D.E., Park, L.E., Walsh, C.M., Naragon-Gainey, K., Paravati, E., & Whillans, A.V. (2021). For the love of money: The role of financially contingent self-worth in romantic relationships. Journal of Social and Personal Relationships, 38 (4), 1303–1328. https://doi.org/10.1177/0265407521991663

Woodyard, A. S., & Robb, C. A. (2016). Consideration of Financial Satisfaction: What Consumers Know, Feel and Do from a Financial Perspective. Journal of Financial Therapy, 7 (2). https://doi.org/10.4148/1944-9771.1102

Ye, J., & Kulathunga, KMMCB (2019). How does financial literacy promote sustainability in SMEs? A developing country perspective. Sustainability (Switzerland), 11 (10). https://doi.org/10.3390/su11102990




DOI: https://doi.org/10.18196/jerss.v8i2.23415

Refbacks

  • There are currently no refbacks.



Office:
Redaksi Journal of Economics Research and Social Sciences, Gedung E2 Lantai 2, Fakultas Ekonomi dan Bisnis, Universitas Muhammadiyah Yogyakarta
Jalan Brawijaya, Tamantirto, Kasihan, Bantul, Daerah Istimewa Yogyakarta 55183

Email: jerss@umy.ac.id

Telp: +62 812-3233-6697

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.