FINANCIAL MANAGEMENT BEHAVIOR AMONG STUDENTS: THE INFLUENCE OF DIGITAL FINANCIAL LITERACY
Abstract
The goal of this study is to investigate how digital financial literacy affects the financial management behavior of students who use digital banking services in Surabaya. Primary data were obtained from questionnaires distributed to students in Surabaya. Using the SmartPLS 4 program, the partial least square structural equation modeling (PLS-SEM) technique was employed for data analysis in this study. The findings of this study indicate that students in Surabaya who utilize digital banking services have a substantial impact on their saving behavior when they are financially literate, digital financial literacy has a significant effect on the spending behavior of students who use digital bank services in Surabaya, digital financial literacy has a significant effect on investment behavior of students who use digital bank services in Surabaya. In short, this research can contribute to helping students in Surabaya to deepen their understanding of digital financial literacy.
References
Ajzen, I. (1991). The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50, 179–211.
Akben-Selcuk, E. (2015). Factors influencing college students’ financial behaviors in Turkey: Evidence from a national survey. International Journal of Economics and Finance, 7(6). https://doi.org/10.5539/ijef.v7n6p87
Aprea, C., Wuttke, E., Breuer, K., Noi, ·, Koh, K., Davies, P., Greimel-Fuhrmann, B., & Lopus Editors, J. S. (2016). International handbook of financial literacy. PringerNature.
Asmaaysi, A. (2022, June 23). 10 Bank digital di Indonesia, Jago hingga Blu by BCA. Retrieved from Bisnis.Com.
Azib, Harahap, D. A., & Amanah, D. (2021). Financial management behavior: Implications of financial literacy and personality. Article in Turkish Journal of Computer and Mathematics Education. https://doi.org/10.17762/turcomat. v12i7.3970
Azis, M. (2020). Analysis the influence of investment knowledge and investment habits against the investment champion in the pandemic covid period: Evidence from Indonesia. Saudi Journal of Business and Management Studies, 5(8), 466–472. https://doi.org/10.36348/sjbms.2020.v05i08.002
Baquiran, D. K. D., Dauan, K. A. C., & Mirasol, I. J. (2018). Spending behaviour of students.
Chawla, D., Bhatia, S., & Singh, S. (2022). Parental influence, financial literacy and investment behaviour of young adults. Journal of Indian Business Research, 14(4), 520–539. https://doi.org/10.1108/JIBR-10-2021-0357
Cheema, A. R., & Rahman, A. (2018). Assessing the determinants of savings in Pakistan: An evidence from PSLM 2010-11. www.european-science.com
Chen, H., & Volpe, R. P. (1998). An analysis of personal financial literacy among college students. 7(2), 107–128.
Hayati, A. F., & Syofyan, R. (2021). Analysis of student digital financial literacy in the era of industrial revolution 4.0.
ICICI Prudential. (2021). Importance of savings. LCICI Prudential Life Insurance. Retrieved from https://www.iciciprulife. com/protection-saving-plans/importance-of-savings.html
Khan, G., & Bhatti, R. (2021). Collection development and managment in the university libraries of Pakistan: A survey of users’ satisfaction. International Information and Library Review, 53(3), 239–253. https://doi.org/10.1080/10572317.2020. 1830739
Kholilah, N. Al, & Iramani, R. (2013). Studi financial management behavior pada masyarakat Surabaya. In Journal of Business and Banking, 3(1).
Lewis, A., Webley, P., & Furnham, A. (1995). The new economic mind: The social psychology of economic behaviour. Harvester Wheatsheaf.
Mankiw, N. G. (2008). Principles of macroeconomics. South-Western College Pub.
Marsh, B. A. (2006). Examining The personal finance attitudes, behaviors, and knowledge levels of first-year and senior students at Baptist Universities in The State of Texas.
Martin, A., & Grudziecki, J. (2006). DigEuLit: Concepts and tools for digital literacy development. Innovation in Teaching and Learning in Information and Computer Sciences, 5(4), 249–267. https://doi.org/10.11120/ital.2006.05040249
Money Habitudes. (2022). How to understand your spending behavior. Retrieved from Moneyhabitudes.Com. https://www.moneyhabitudes.com/blog/how-to-understand-your-spending-behavior/
Mutiasari, A. I. (2020). Perkembangan industri perbankan di era digital. IX(2). www.aptika.kominfo.go.id,
Nofsinger, J. R. (2001). Investment madness: How psychology affects your investing-- and what to do about it. Financial Times Prentice Hall.
OECD. (2014). PISA 2012 Results: Students and money (Volume VI). OECD. https://doi.org/10.1787/9789264208094-en
OJK. (2022, July 28). Saatnya belajar literasi keuangan digital. Jakarta: Otoritas Jasa Keuangan.
Prasad, H., Meghwal, D., & Dayama, V. (2018). Digital financial literacy: A study of households of udaipur. The Journal of Business and Management, V(1), 23–32.
Rahayu, R., Ali, S., Aulia, A., & Hidayah, R. (2022). The current digital financial literacy and financial behavior in Indonesian millennial generation. Journal of Accounting and Investment, 23(1), 78–94. https://doi.org/10.18196/jai.v23i1.13205
Ramadhan, A. Y., & Asandimitra, N. (2019). Determinants of financial management behavior of millennial generation in Surabaya. Jurnal Minds: Manajemen Ide dan Inspirasi, 6(2), 129. https://doi.org/10.24252/minds.v6i2.9506
Ramayah, T., Rouibah, K., Gopi, M., & Rangel, G. J. (2009). A decomposed theory of reasoned action to explain intention to use Internet stock trading among Malaysian investors. Computers in Human Behavior, 25(6), 1222–1230. https://doi.org/10.1016/j.chb.2009.06.007
Rifka, I. (2021, December 9). Apa itu bank digital dan bedanya dengan layanan online bank? Retrieved from Kompas.Com https://money.kompas.com/read/2021/12/09/100638326/apa-itu-bank-digital-dan-bedanya-dengan-layanan-online-bank?page=all
Saleem, S., Mahmood, F., Usman, M., Bashir, M., & Shabbir, R. (2021). Determinants of investment behavior in mutual funds: Evidence from Pakistan. Frontiers in Psychology, 12. https://doi.org/10.3389/fpsyg.2021.666007
Servon, L. J., & Kaestner, R. (2008). Consumer financial literacy and the impact of online banking on the financial behavior of lower-income bank customers. Journal of Consumer Affairs, 42(2), 271–305.
Setiawan, M., Effendi, N., Santoso, T., Dewi, V. I., & Sapulette, M. S. (2022). Digital financial literacy, current behavior of saving and spending and its future foresight. Economics of Innovation and New Technology, 31(4), 320–338. https://doi.org/10.1080/10438599.2020.1799142
Shefrin, H. (2002). Beyond greed and fear: Understanding behavioral finance and the psychology of investing. Oxford University Press.
Singh, S., Gupta, S., Jain, S., Kabra, S., & Gupta, S. (2020). Student budgeting and spending behaviour. In International Journal of Creative Research Thoughts (Vol. 8, Issue 7). www.ijcrt.org
Sorooshian, S., & Seng Teck, T. (2014). Spending behaviour of a case of asian university students. Asian Social Science, 10(2), 64–69. https://doi.org/10.5539/ass.v10n2p64
Suherdi, D., Rezky, S. F., Apdilah, D., Sinuraya, J., Sahputra, A., Syahputra, D., & Wahyuni, D. (2021). Peran literasi digital di masa pandemi. Cattleya Darmaya Fortuna.
Suta, I. P. G. A. (2000). Menuju pasar modal modern. Yayasan SAD Satria.
Tony, N., & Desai, K. (2020). Impact of digital financial literacy on digital financial inclusion. International Journal of Scientific & Technology Research, 9, 1. www.ijstr.org
Van Raaij, W. F. (2016). Investment behavior. Understanding Consumer Financial Behavior, 89–101.
Widjaja, R., & Pertiwi, D. (2021). The influence of emotional factors, materialism, risk perception, and financial literacy on the tendency of debt of millennial generation in Surabaya. International Journal of Financial and Investment Studies (IJFIS), 1(2), 85–93. https://doi.org/10.9744/ijfis.1.2.85-93
Xiao, J. J. (2008). Applying behavior theories to financial behavior. In Handbook of Consumer Finance Research (pp. 69–70).
Xu, L., & Zia, B. (2012). Financial literacy around the world an overview of the evidence with practical suggestions for the way forward. Retrieved from http://econ.worldbank.org.
Zulaihati, S., Susanti, S., & Widyastuti, U. (2020). Teachers’ financial literacy: Does it impact on financial behaviour? Management Science Letters, 10(3), 653–658. https://doi.org/10.5267/j.msl.2019.9.014
Copyright (c) 2023 Johann Clarence, Dewi Pertiwi
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors who publish in this journal agree to the following terms:
- Authors retain unrestricted copyright and full publishing rights. The authors grant the Publisher the right of first publication, with the work simultaneously licensed under the terms and conditions of the Creative Commons Attribution 4.0 International License.
- Authors can enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) before and during the submission process, as it can lead to productive exchanges and earlier and more extraordinary citations of published work.