The influence of financial knowledge on financial management behavior with locus of control and financial attitude as mediation variables

Abstract

The rapid development of Financial Technology (Fintech) has had an impact on Indonesia's digital economy. Paylater has become the service people choose to meet their daily needs in addition to the increasing number of business transactions carried out electronically (ecommerce). The increase in the use of paylaters in e-commerce increases every year, accompanied by negative impacts such as impulsive buying and consumptive behavior that can befall users and heve derimental impact, especially Generation Z on the island of Java, if they do not have good Financial Management Behavior. The unique phenomenon that currently occuring is that there is an increase in the knowledge possessed but the Non Performing Loan (NPL) rate is also high. This research aims to determine the factors that influence of Financial Knowledge on Financial Management Behavior with Locus of Control and Financial Attitudes as mediation. This research is categorized as explanatory research. The respondents in this study were Generation Z e-commerce paylater users on the island of Java. The sample size in this study was determined using a purposive sampling technique with a total sample of 317 respondents. The data collection method uses a questionnaire, data is analyzed using PLS-SEM. The research results show that Financial Knowledge influences Financial Management Behavior and Locus of Control and Financial Attitudes as a psychological variable added based on Behavioral Finance partially mediate this relationship. It is hoped that beside from increasing their knowledge, ecommerce paylater users on the island of Java must have faith for what in what they can get in the future is controlled by themselves and attitudes in carrying out financial management.

Keywords: {'name': 'Paylater,'}, {'name': 'Financial knowledge'}, {'name': 'Locus of Control'}, {'name': 'Financial Attitude'}, {'name': 'Financial Management Behavior'}

Authors & affiliations

Ahmad Fathoni Ardyansyah
Affiliation not supplied

Nur Khusniyah Indrawati
Affiliation not supplied

Deposited references

Supplied references, not a list of publications citing this article.

DOI: 10.5539/ass.v8n16p30

Agustina, N. R., & Mardiana. (2020). The Effect of Financial Knowledge and Financial Attitude on Financial Management Behavior Mediated with Locus of Control. Management and Economics Journal, 4(3), 273–284.

DOI: 10.1111/ecin.12255

Atkinson, et al. (2012). Akuntansi Manajemen. Fifth Edition. Volume 2. Jakarta: PT INDEKS.

DOI: 10.1108/IJBM-05-2018-0120

DOI: 10.1002/9781118813454

DOI: 10.1093/acprof:oso/9780190269999.003.0001

DOI: 10.1891/1052-3073.30.1.44

DOI: 10.1108/IJBM-10-2019-0356

DOI: 10.1016/S1057-0810(99)80006-7

Cooper, D., & Schindler. (2014). Business Research Methods. New York: McGrawHill.

Dew, J., & Xiao, J. J. (2011). The Financial Management Behavior Scale: Development and Validation. Journal of Financial Counseling and Planning, 22, 43-59.

Djou, L. G. (2019). Analisis Pengaruh Literasi Keuangan, Sikap Keuangan Dan Kepribadian Terhadap Perilaku Pengelolaan Keuangan UMKM Di Kabupaten Ende. Magisma: Jurnal Ilmiah Ekonomi Dan Bisnis, 7(2), 123 - 134.

DOI: 10.1016/0191-8869(84)90025-4

Garman, E. T., & Forgue, R. (2006). Personal Finance (7th ed.). Boston: Houghton Mifflin Co.

DOI: 10.15381/rivep.v20i2.609

Hilgert, M. A., Hogarth, J. M., & Beverly, S. (2003). Household Finance: The Connection Between Knowledge and Behavior. Federal Reserve Bulletin, 89(7), 300-322.

Hirschey, M., & Nofsinger, John. (2008). Investments, Analysis and Behavior. McGraw-Hill.

DOI: 10.1111/j.1745-6606.2008.00106.x

DOI: 10.14414/jbb.v3i1.255

DOI: 10.24929/jafis.v2i2.1662

DOI: 10.1017/S1474747211000448

Mien, Nguyen Thi Ngoc, & Thao, Tran Phuong. (2015). Factors Affecting Personal Financial Management Behaviors: Evidence from Vietnam. Proceedings of the Second Asia-Pacific Conference on Global Business, Economics, Finance and Social Sciences (AP15Vietnam Conference) ISBN: 978-1-63415-833-6. 10-12 July 2015, Danang-Vietnam.

DOI: 10.1016/j.erap.2018.10.003

Mitchell, S., & Qadar, S. (2019). Afterpay, PayPal and Zip Pay: The shopping tech making us buy more. Retrieved June 20, 2020, from https://www.abc.net.au/life/afterpay-paypal-and-zip-pay-making-us-buy-more/11604216 [Accessed January 20, 2024]

DOI: 10.1080/23311886.2022.2108636

Pankow, Debra. (2012). Financial Values, Attitudes and Goals. NDSU Extension Service. Available at: https://www.ag.ndsu.edu/pubs/yf/fammgmt/fs591.pdf

Parrotta, J. L., & Johnson, P. J. (1998). The impact of financial attitudes and knowledge on financial management and satisfaction of recently married individuals. Journal of Financial Counseling and Planning, 9(2), 59.

DOI: 10.24252/minds.v6i1.9274

DOI: 10.1111/j.1745-6606.2005.00016.x

Rizkiawati, N. L., & Asandimitra, N. (2018). Pengaruh Demografi, Pengetahuan keuangan, Sikap keuangan, Kendali lokus Dan Financial Self-Efficacy Terhadap Perilaku manajemen keuangan Masyarakat Surabaya. Jurnal Ilmu Manajemen (JIM), 6(3).

DOI: 10.1037/h0092976

Setiawan, S. R. D. (2019). Sebelum Transaksi Pakai Fitur Pay Later, Simak 5 Risikonya. Retrieved June 15, 2020, from https://money.kompas.com/read/2019/09/27/140050726/sebelum-transaksi-pakai-fitur-pay-later-simak-5-risikonya. [Accessed November 20, 2023]

Simon, Herbert A. (1959). Theories of decision making in economics and behavioral science. American Economic Review, 49(3), 252–283.

Simon, Herbert A. (1978). Rationality as a process and as a product of thought. American Economic Review, 70(1), 1–16.

DOI: 10.1057/978-1-349-95121-5_472-1

DOI: 10.20473/jmtt.v6i1.2659

DOI: 10.17509/jpak.v8i1.21938

DOI: 10.4148/jft.v3i1.1453

Yong, C. C., Yew, S. Y., & Wee, C. K. (2018). Pengetahuan keuangan, attitude and behaviour of young working adults in Malaysia. Institutions and Economies, 10(4), 21–48

DOI: 10.30588/jmp.v8i1.376

Hadijah, S. (2019, October). Aplikasi Layanan Pay-later Makin Diminati, Yuk Cek Keuntungan dan Kerugiannya - Cermati.Com. Retrieved from https://www.cermati.com/artikel/aplikasi-layanan-pay-later-makin-diminati-yuk-cekkeuntungan-dan-kerugiannya [Accessed 15 September 2023].

Otoritas Jasa Keuangan. (2023, November). Survei Nasional Literasi Dan Inklusi Keuangan Tahun 2022. Retrieved from https://ojk.go.id/id/berita-dan-kegiatan/siaranpers/Pages/Survei-Nasional-Literasi-dan-Inklusi-Keuangan-Tahun2022.aspx [Accessed November 20, 2023