Financial Literacy in Millenials Generation in Indonesia

DOI

10.2991/aebmr.k.200915.072How to use a DOI?

Keywords

compulsive buying, financial literacy, materialism, a propensity to indebtedness

Abstract

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.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Delia Anindita Prashella
AU  - Farah Margaretha Leon
PY  - 2020
DA  - 2020/09/15
TI  - Financial Literacy in Millenials Generation in Indonesia
BT  - Proceedings of the International Conference on Management, Accounting, and Economy (ICMAE 2020)
PB  - Atlantis Press
SP  - 322
EP  - 325
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200915.072
DO  - 10.2991/aebmr.k.200915.072
ID  - Prashella2020
ER  -