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ANALYSIS OF MILLENIAL GENERATION BEHAVIOR IN FINANCIAL PERSPECTIVE
Abstract
Nowadays, millennials are at productive age. They are forced to make financial decisions. These decisions require the ability, knowledge, and good financial behavior. This study aims to find out the level of financial capability which is measured by knowledge, skills, and attitude; financial behavior which is measured by practice regarding cash, credit, and saving management, and their effect on financial satisfaction which is measured by subjective assessments of satisfaction of asset, credit, and saving management on millennials in Surabaya, Sidoarjo, Gresik, and Bangkalan regions. Data are obtained through direct and online surveys of 200 millennials using purposive and snowball sampling techniques. The results of this study show that financial capability has a positive effect on financial behavior. The better their financial management ability, the better their financial behavior. Financial behavior has an effect on financial satisfaction and mediates the relation between financial capability and financial satisfaction.
... In addition, financial management practices, including knowledge, attitude, and skills, significantly impact employees' financial management practices and satisfaction [83]. Meanwhile, financial behavior acts as a mediator between financial capability and financial satisfaction, underscoring the importance of financial skills and behaviors in achieving satisfaction [84]. ...
... This suggests that financial management skills contribute to employees' perceived financial well-being and satisfaction. Moreover, research indicates that individuals with better financial management abilities demonstrate more positive financial behaviors, leading to increased financial satisfaction [84]. Additionally, financial literacy has been found to impact financial satisfaction, indicating that individuals with greater financial knowledge tend to experience higher levels of satisfaction in managing their personal finances [88]. ...
Understanding the financial capability and satisfaction of Catholic Higher Education Institution (CHEI) employees is crucial in addressing their financial well-being. Hence, this paper quantitatively assessed the financial capability and financial satisfaction of CHEI employees. Meanwhile, the qualitative phase explored the factors influencing financial capability and financial satisfaction through interviews. By employing a sequential explanatory mixed-method approach, the research provided a holistic understanding of how financial capability impacts financial satisfaction and explore potential strategies to enhance their financial well-being. The quantitative phase involved a self-made research instrument. The researcher employed tools like frequency distribution, mean, standard deviation, and regression analysis. For the qualitative phase, data collection involved a semi-structured interview. Lichtman's 3 Cs analyzed the transcribed data. The quantitative results revealed that the CHEI employees has a high financial capability. However, they are financially dissatisfied. In their demographics, income, educational attainment, and employment classification has a significant relationship of CHEI financial capability. In financial satisfaction, only income and educational attainment has a significant relationship. Moreover, the qualitative results revealed that having alternative means of living, receiving spousal support, and having fewer dependents are key elements that enhance the financial resilience and flexibility of CHEI employees. However, despite their financial capability, the research indicates that CHEI employees may face financial dissatisfaction linked to employment-related issues. Factors such as limited career advancement opportunities and lower monthly salary levels are identified as significant contributors to their financial dissatisfaction.
... In the employment context, Gen Y is automatically in the golden or productive age (Filatrovi, 2021;Wulandari, 2022). Interestingly, of all the positions, all professions have been occupied by the dominant Gen Y workforce. ...
The urgency of this research is to investigate the partial effects of business length (BL), HR quality (HRQ), and capital (Cpl) on turnover (Tnr), labor costs (LC), market share (MS) to profits (Pft) from active SME clusters operating in wood processing from two East Kalimantan locations, i.e. Penajam Paser Utara (PPU) and Kutai Kartanegara. Data was taken and compiled from interviews with 211 Gen Y as business owners and verified via the panel regression method. In the context of the wood processing industry. This paper finds two main indications. The first model in PPU shows that: (1) BL has a significant impact on Tnr, (2) BR, HRQ, Cpl, and Tnr have a significant impact on LC, (3) BL, HRQ, Cpl, Tnr, and LC have a significant impact on MS, and (4) BL, HRQ, Cpl, and Tnr have a significant impact on Pft. In the second model with the case in Kutai Kartanegara, it proves that: (1) BL and HRQ have a significant effect on Tnr, (2) BL, HRQ, and Cpl have a significant effect on LC, (3) BL, HRQ, Cpl, Tnr, and LC have an effect significant for MS, and (4) BL, HRQ, LC, MS have a significant effect on Pft. The originality of this idea promotes the continuity of SMEs towards a holistic cycle. Practical implications for SMEs in the wood processing industry in both places are able to encourage flexible strategies in business productivity by increasing HR quality, capital, market share and labor costs in a sustainable manner.
... Long-term investment decisions allow investors to minimize transaction costs and avoid the risk of overtrading. Investment decisions require good skills, knowledge, and financial behavior (Wulandari, 2022). The quality of investment decisions will impact investment performance (Giovanni et al., 2022). ...
According to prospect theory, investors evaluate gains and losses with certain tendencies. Investors assess losses and avoid risk in the domain of gains. When faced with choices involving potential losses or gains, loss aversion can lead to a tendency to avoid risks that could result in losses, even if the potential gains are substantial. The population in this study is cryptocurrency investors in Bali, whose number is unknown. The sample was determined based on the opinion that the number of indicators x 5-10, which is 150 samples. The sampling technique used is purposive sampling with the criterion that cryptocurrency investors have been investing for a minimum of 2 years. The data analysis technique used is SEM-PLS. Underconfidence does not affect cryptocurrency investment performance. Underconfidence positively affects Long Term Investment Decision and short term investment decision. Long Term Investment Decision and short term investment decision positively affect cryptocurrency investment performance.
O presente artigo aborda a importância da educação financeira nas decisões de compra de eletrodomésticos das famílias, com destaque para as interferências geracionais nas decisões de pagamento. Também destaca a necessidade de planejamento financeiro para garantir a estabilidade econômica familiar. Utilizando-se como metodologia de pesquisa da abordagem quantitativa, o estudo analisou hábitos financeiros de famílias, de diferentes níveis de renda, na cidade de Jaraguá do Sul – Santa Catarina. Identificou-se, através do tratamento dos dados, os métodos de pagamento mais utilizados e os fatores considerados na escolha destes. As conclusões ressaltam a relevância da conscientização financeira, do planejamento e da busca pelo melhor custo-benefício na aquisição de eletrodomésticos, visando a sustentabilidade financeira e o bem-estar das famílias, mas que estas decisões estão diretamente vinculadas aos trade-off de cada faixa etária. A educação financeira é indicada como fundamental para uma gestão financeira saudável e responsável, contribuindo para a tomada de decisões conscientes e equilibradas no contexto doméstico.
Purpose
The purpose of this paper is to investigate roles of financial literacy, financial behavior, and financial capability as mediating factors between financial education and financial satisfaction.
Design/methodology/approach
Data are from the 2012 National Financial Capability Study, a large national data set with detailed information on financial satisfaction, education, literacy, behavior, capability, and related variables. Mediation analyses are used to answer research questions.
Findings
Financial education may affect financial satisfaction, a subjective measure of financial well-being, through financial literacy, financial behavior, and financial capability variables. Results show that subjective financial literacy, desirable financial behavior and a financial capability index (a sum of Z-scores of objective financial literacy, subjective financial literacy, desirable financial behavior, and perceived financial capability) are strong mediators between financial education and financial satisfaction.
Research limitations/implications
The study has used cross sectional data that can only document associations between financial education and satisfaction and the mediators between them. Future research could use relevant longitudinal data to verify multiple benefits of financial education.
Practical implications
The findings have implications for financial service professionals to take advantages of multiple benefits of financial education in content acquisition, confidence in knowledge and ability, and action taking when they communicate with their clients.
Social implications
Policy makers on consumer financial education may use the information to advocate and promote effective education programs to improve consumer financial well-being.
Originality/value
This study is the first of this kind to examine the association between financial education and financial satisfaction and several financial capability variables as mediating factors.
The purpose of this study was to examine associations between consumer financial capability and financial satisfaction. Consumer financial capability was measured by three sets of variables, perceived financial capability, financial literacy, and financial behavior. Using data from the 2009 US State-by-State Survey of Financial Capability, the results indicated the positive association between perceived financial capability and financial satisfaction. The findings suggested that desirable financial behavior increases while risky financial behavior decreases financial satisfaction. Subjective financial literacy was also found to contribute positively to financial satisfaction. The positive association between objective financial literacy and financial satisfaction was found in bivariate analyses but not in multivariate analyses. The results imply that to enhance consumer financial well-being, consumer financial education programs should emphasize action taking and encourage consumers to avoid risky financial behavior, engage in desirable financial behavior, and improve financial self-efficacy.
Abstract Positive financial behaviours of consumers are examined using a national sample of consumers who use credit counselling services in the US from a behavioural economic perspective. The findings indicate that consumers in credit counselling may follow a hierarchical pattern in their financial behaviours, paying off debts and adjusting spending before considering saving. Consumers who are older, have a part-time job (vs. the unemployed), and report a more secure retirement, a better family relationship, and a higher score of self-evaluation of financial behaviours are likely to report more positive financial behaviours. Reporting more financial behaviours and a higher score of self-evaluation of financial behaviours, along with several demographic and perception variables, tend to reduce financial stress and increase financial satisfaction among consumers who use credit counselling services.
This paper aims to contribute further research on the conceptualization of individual financial satisfaction as a particular domain of satisfaction with life as a whole. Based on the 2003 Survey on Living Conditions and Poverty for Andalucía (Spain) and using a self-reported measure of welfare, ordered probit models are used to analyze the extent to which individual financial satisfaction can be solely explained by income in absolute terms, or alternatively, by taking into account the importance of relative income in its two dimensions: (1) personal aspirations as individual's adaptation to previous and future income levels (intra-individual comparisons), and (2) social comparisons as individual's concern for her peer's income (inter-personal dependency).
Four replicable findings have emerged regardingthe relation between income and subjectivewell-being (SWB): 1. There are largecorrelations between the wealth of nations andthe mean reports of SWB in them, 2. There aremostly small correlations between income andSWB within nations, although these correlationsappear to be larger in poor nations, and therisk of unhappiness is much higher for poorpeople, 3. Economic growth in the last decadesin most economically developed societies hasbeen accompanied by little rise in SWB, andincreases in individual income lead to variableoutcomes, and 4. People who prize materialgoals more than other values tend to besubstantially less happy, unless they are rich.Thus, more money may enhance SWB when it meansavoiding poverty and living in a developednation, but income appears to increase SWBlittle over the long-term when more of it isgained by well-off individuals whose materialdesires rise with their incomes. Several majortheories are compatible with most existingfindings: A. The idea that income enhances SWBonly insofar as it helps people meet theirbasic needs, and B. The idea that the relationbetween income and SWB depends on the amount ofmaterial desires that people's income allowsthem to fulfill. We argue that the firstexplanation is a special case of the secondone. A third explanation is relativelyunresearched, the idea that societal norms forproduction and consumption are essential tounderstanding the SWB-income interface. Inaddition, it appears high SWB might increasepeople's chances for high income. We review theopen issues relating income to SWB, anddescribe the research methods needed to provideimproved data that will better illuminate thepsychological processes relating money to SWB.
Using data from the General Social Surveys,this study compares the effects of differentincome variables on financial satisfactionamong people age 65 and above in the UnitedStates. Results suggest that simply usinghousehold income as a variable without anyadjustment does not capture the real effect ofincome on financial satisfaction. Incomeequivalence scales and per-capita income arebetter income predictors of financialsatisfaction than family income. Given thefact that it is not uncommon in financialsatisfaction as well as subjective well-beingresearch to use the family income variablewithout adjustment, findings regarding theeffect of income from those studies should beinterpreted with caution.
This paper presents a description of the development and testing of a framework for understanding the determinants of financial satisfaction. This study used data obtained from a random sample of white-collar clerical workers (N = 220). Direct, as well as indirect, effects on financial satisfaction were identified using a path analysis method. It was determined that financial satisfaction is related, both directly and indirectly, with diverse factors including financial behaviors, financial stress levels, income, financial knowledge, financial solvency, risk tolerance, and education. Findings support the continued and increased use of targeted education initiatives directed at improving the financial literacy and behavior of family and consumer economics constituencies.
Recent research on well-being suggests that domain-specific behaviors contribute to domain-specific satisfactions, which in
turn contribute to an individual’s overall satisfaction with life. Our study is an attempt to add to the literature by observing
these phenomena from a financial perspective. Using data collected from a sample of undergraduate students at a major state
university in the U.S. and employing structural equation modeling, we have found evidence suggesting that positive financial
behaviors contribute to financial satisfaction and financial satisfaction in turn contributes to life satisfaction. In addition,
positive financial behaviors contribute to life satisfaction through two more mediating variables: academic performance and
academic satisfaction.
This study analyses the relationship between subjective and objective measures
of well-being in selected European countries using the data of the European Community
Household Panel (ECHP). In the first part of the paper, we develop a random-effect ordered
probit model, separately for each country, relating the subjective measure of income satisfaction
to actual income, and controlling for some individual and household socio-demographic fixed
effects. In the second part of the paper, we fit a Bayesian cross-classified multilevel model, in
order to control for intra-family correlation in subjective well-being, which actually appears to
be present.
This paper examines the relationship between working in the formal or informal sector and self-reported individual financial satisfaction in a country in transition. It does so by allowing for individual heterogeneity in terms of perceived financial insecurity and tax morale. The empirical analysis uses a dataset for Albania, a country in transition. The method applied is the 'self-administered questionnaire', which combines personal contacts with written questionnaire. The results indicate that, for most individuals, working in the informal sector has negative effects on their self reported financial satisfaction. For some individuals, however, this effect is positive. The characteristic defining these two groups of individuals is their attitude towards the perceived financial insecurity related to not paying taxes. These findings have important implications, in particular for transition countries with large informal sectors. Given the involuntary participation in the informal sector in these countries, the majority of individuals working in this sector will remain financially dissatisfied as long as they have no other social safety net.
We examined the relationship between the character strength of kindness and subjective happiness (Study 1), and the effects of a counting kindnesses intervention on subjective happiness (Study 2). In Study 1, participants were 175 Japanese undergraduate students and in Study 2, participants were 119 Japanese women (71 in the intervention group and 48 in the control group). Results showed that: (a) Happy people scored higher on their motivation to perform, and their recognition and enactment of kind behaviors. (b) Happy people have more happy memories in daily life in terms of both quantity and quality. (c) Subjective happiness was increased simply by counting one's own acts of kindness for one week. (d) Happy people became more kind and grateful through the counting kindnesses intervention. Discussion centers on the importance of kindness in producing subjective happiness.
We examined financial literacy among the young using data from the 1997 National Longitudinal Survey of Youth. We showed that financial literacy is low among the young; fewer than one-third of young adults possess basic knowledge of interest rates, inflation, and risk diversification. Financial literacy is strongly related to sociodemographic characteristics and family financial sophistication. Specifically, a college-educated male whose parents had stocks and retirement savings is about 50 percentage points more likely to know about risk diversification than a female with less than a high school education whose parents were not wealthy. These findings have implications for consumer policy.
Achieving a state of being financially satisfied is a more feasible aim than becoming debt-free, which requires well strategized economic behaviors over one’s life cycle. Furthermore, financial satisfaction can describe an individual’s perception concerning his/her current financial situation. In this study, we developed and tested a conceptual model to predict the level of financial satisfaction among Malaysian working individuals. Specifically, the model explains how financial planning (FP) directly affects financial satisfaction and mediates the effects of financial literacy (FL) and basic money management (BMM). The hypotheses were tested using survey data from 1,957 respondents who attended investment seminars across Malaysia. The results from partial least squares analyses suggest that FP is an important determinant of financial satisfaction, whereas BMM does not affect satisfaction directly. In addition, FL and attitude towards money were found to be significant antecedent variables of FP. The study also found that the current FL level in Malaysia is moderately high at 66.7 % based on tier one financial quiz questions. From the findings, with the increasingly complex financial systems, we conclude that everyone should manage and plan their financial activities well ahead because people will face many differing financial commitments at certain points in their lives.
This study examines how study participants' financial knowledge and participation in a Child Development Account intervention affects 529 College Savings Plan account holding among caregivers of infants. The study uses data from the SEED for Oklahoma Kids (N = 2,651), a statewide randomized experiment using a probability sample of infants selected from birth records. Results of logit regression show that participants' financial knowledge is positively related to account holding in the treatment group but not in the control group. The interactive effects between financial knowledge and treatment status are statistically significant. This finding implies that the effect of financial knowledge on financial decisions related to college savings is moderated by institutional features, such as incentives, information and access. Results of this study support the propositions of financial capability and suggest that expanding financial capability requires both improved individual financial knowledge and supportive policy.
The pursuit of happiness is an important goal for many people. However, surprisingly little scientific research has focused on the question of how happiness can be increased and then sustained, probably because of pessimism engendered by the concepts of genetic determinism and hedonic adaptation. Nevertheless, emerging sources of optimism exist regarding the possibility of permanent increases in happiness. Drawing on the past well-being literature, the authors propose that a person's chronic happiness level is governed by 3 major factors: a genetically determined set point for happiness, happiness-relevant circumstantial factors, and happiness-relevant activities and practices. The authors then consider adaptation and dynamic processes to show why the activity category offers the best opportunities for sustainably increasing happiness. Finally, existing research is discussed in support of the model, including 2 preliminary happiness-increasing interventions. (PsycINFO Database Record (c) 2012 APA, all rights reserved)
In a study of college students, affective credit attitude (feeling about using credit cards) and gender influenced college students' credit purchasing. Affective credit attitude predicted the purchase of clothing, electronics, entertainment, travel, gasoline, and food away from home. Females purchased clothing; males purchased electronics, entertainment, and food away from home. Gender was more influential in predicting financial management practices than was affective credit attitude, with female students employing a greater number of financial practices. A path analysis model showed gender differences in the relationship between financial practices, financial stress, affective credit attitude, and the number of credit cards with a balance.
This study examines savings outcomes and the role of financial incentives in a community-based, asset-building program for low- and moderate-income children. Data are from the first large-scale demonstration of Child Development Accounts (CDAs) in the United States. Two savings outcomes are studied: (1) average quarterly net savings (mean 1518.24, including incentives). Multivariate analysis finds that different incentives have different associations with the two savings outcomes. This study informs public policy in general and savings policy in particular, by expanding knowledge of the role of incentives in saving and building assets for children.
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