Determinant of The Financial Literacy: Case Study on Career Woman in Indonesia
Abstract
Financial literacy is one of the relevant facts in improving the economy. The purpose of this study was to examine the influence of demographic factors (i.e., marital status, education level, income, and age) and financial socialization agent on financial literacy. Using online and offline questionnaire survey from 100 respondents in Surabaya, East Java, and the study revealed that education level, personal income, and financial socialization agent, give the positive effect, while the marital status and age does not affect financial literacy. This result implies that the government can focus on educating the development and improvement of financial literacy for the society. It is believed to be a step forward in practicing financial planning from an early age to solve problems with financial management using financial knowledge, financial attitude, and financial behavior.
Keywords
References
Agarwalla, S. K., Barua, S. K., Jacob, J., & Varma, J. R. (2013). Financial Literacy Among Working Young in Urban India. World Development. Vol. 67: 101-109. doi: https://doi.org/10.1016/j.worlddev.2014.10.004.
Agnew, S., & Harrison, N. (2015). Financial Literacy and Student Attitudes to Debt: A Cross National Study Examining The Influence of Gender on Personal Finance Concepts. Journal of Retailing and Consumer Services. Vol. 25: 122–129. doi: 10.1016/J.JRETCONSER.2015.04.006.
Alwee, A. M. H., & Salleh, P. M. (2015). A Comparison on Financial Literacy Between Welfare Recipients and Non-welfare Recipients in Brunei. International Journal of Social Economics. Vol. 42(7): 598–613. doi: https://doi.org/10.1108/IJSE-09- 2013-0210.
Amaliyah, R., & Witiastuti, R. S. (2015). Analisis Faktor yang Mempengaruhi Tingkat Literasi Keuangan di Kalangan UMKM Kota Tegal (Analysis of Factors that Affect of Financial Literacy among the Small Medium Enterprises in Tegal City). Management Analysis Journal. Vol. 4(3): 252–257.
Andrew, V., & Linawati, N. (2014). Hubungan Faktor Demografi dan Pengetahuan Keuangan Dengan Perilaku Keuangan Karyawan Swasta di Surabaya (The Relationship of Demographic Factors and Financial Knowledge With Private Employees Financial Behavior in Surabaya). FINESTA. Vol. 2(2): 35-39.
Ansong, A., & Gyensare, M. A. (2012). Determinants of University Working-Students’ Financial Literacy at the University of Cape Coast, Ghana. International Journal of Business and Management. Vol. 7(9): 126–133. doi: https://doi.org/10.5539/ijbm. v7n9p126.
Brown, M., & Graf, R. (2013). Financial Literacy and Retirement Planning in Switzerland. Numeracy. Vol. 6(2): 565–584. doi: https://doi.org/10.1017/S1474747211000485.
Daft, L. R. (2010). Era Baru Manajemen (New Era of Management). Jakarta: Salemba Empat.
Garg, N., & Singh, S. (2018). Financial Literacy Among Youth. International Journal of Social Economics. Vol. 45(1): 173-186. doi: https://doi.org/10.1108/IJSE-11-2016-0303.
Ghozali, I. (2014). Structural Equation Modeling: Metode Alternatif Dengan Partial Least Square (Structural Equation Modeling: Alternative Methode Use Partial Least Square). Semarang: BP Undip.
Hair, J. F., Hult, G. T. H., Ringle, C. M., & Sarstedt, M. (2014). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). Los Angeles: Sage.
Henseler, J., Ringle, C. M., & Sinkovics, R. R. (2009). The Use of Partial Least Squares Path Modeling in International Marketing. In Sinkovics, R. R., & Ghauri, P. N. (Ed). New Challenges to International Marketing (Advances in International Marketing). Vol. 20: 277–320. United Kingdom: Emerald Group Publishing Limited.
Hilgert, M. A., Hogarth, J. M., & Beverly, S. G. (2003). Household Financial Management: The Connection between Knowledge and Behavior. Federal Reserve Bulletin. Vol. 106: 309–322. doi: https://doi.org/10.1093/rfs/hhv072.
Hogarth, J. M., & Hilgert, M. A. (2002). Financial Knowledge, Experience, and Learning Preferences: Preliminary Results from a New Survey on Financial Literacy’, Proceedings of the American Council on Consumer Interests 2002 Annual Conference. Vol. 48: 1–7. Available at: http://www.consumerinterests.org/public/articles /%5Cpublic%5Carticles%5CFinancialLiteracy-02.pdf.
Isomidinova, G., & Singh, J. S. K. (2017). Determinantc of Financial Literacy: A Quantitative Study Among Young Students in Tashkent, Uzbekistan. Electronic Journal of Business and Management. Vol. 2 (1): 61-75.
Kumalaningrum, M. P. (2010). Pengaruh Gender Sebagai Pemoderasi Pada Hubungan Orientasi Pasar dan Kinerja Keuangan (The Influence of Gender as A moderating On the Relationship of Market Orientation and Financial Performance). Jurnal Riset Akuntansi dan Keuangan. Vol.6 (2): 99-112.
Lyons, A. C., Chang, Y., & Scherpf, E. (2006). Translating Financial Education into Behavior Change for Low-income Populations. Journal of Financial Counseling and Planning. Vol. 17(2): 27-45. available at SSRN: https://ssrn.com/abstract=2232122.
Mahdzan, N. S., & Tabiani, S. (2013). The Impact of Financial Literacy on Individual Saving: An Exploratory Study in The Malaysian Context. Transformations in Business and Economics. Vol. 12(1): 41–55.
Malhotra, N. K. (2005). Riset Pemasaran: Pendekatan Terapan Jilid 1. Ed 4 (Marketing Research: an Applied approach, Vol. 1. 4nd edition). Jakarta: Gramedia Pustaka Utama.
Margaretha, F., & Sari, S. M. A. Y. (2015). Faktor Penentu Tingkat Literasi Keuangan Para Pengguna Kartu Kredit di Indonesia (Determinants of Financial Literacy of The Credit Card Users in Indonesia). Jurnal Akuntansi dan Investasi. Vol. 16(2): 132-144. doi: https://doi.org/10.18196/JAI-2015.0038.
Masche, J. G. (2010). Explanation of normative declines in parents’ knowledge about their adolescent children. Journal of Adolescence. Vol. 33(2): 271–284. doi: https://doi.org/ 10.1016/J.adolescence.2009.08.002.
Mouna, A., & Anis, J. (2017). Financial Literacy in Tunisia: Its Deteminants and Its Implications on Investment Behavior. Research in International Business and Finance. Vol. 39 (Part A): 568-577. doi: https://doi.org/10.1016/j.ribaf.2016.09.018.
Muat, S., Miftah, D., & Wulandari, H. (2014). Analisis Tingkat Literasi Keuangan dan Dampaknya Terhadap Keputusan Pinjaman Pribadi (Analysis of Financial Literacy and its impact on Decision personal loans). Proceedings on Business Dynamics Toward Competitive Economic Region of ASEAN. Salatiga: FEB Universitas Kristen Satya Wacana, pp. 465–478.
Notoatmodjo, S. (2003). Pendidikan Dan Perilaku Kesehatan (Education And Health Behaviors). Jakarta: Rineka Cipta.
Organization for Economic Co-operation and Development [OECD]. (2016). International Survey of Adult Financial Literacy Competencies. Available at: http://www.oecd.org/daf/fin/financial-education/OECD-INFE-International-Survey-of-Adult-FInancial-Literacy-Competencies.pdf.
Orton, L. (2007). Financial Literacy: Lesson From International Experience. CPRN Research Report. Vol. 9: 1-63
Potrich, A. C. G., Vieira, K. M., & Kirch, G. (2015). Determinant of Financial Literact: Analysis of The Influence of Socioeconomic and Demographic Variables. Revista Contabilidade and Finances. Vol. 26 (69): 1060-1070. doi: https://doi.org/10.1590/1808-057x2015 01040.
Rasoaisi, L., & Kalebe, K. M. (2015). Determinantc of Financial Literacy Among The National University of Lesotho Students. Asian Economic and Financial Review. Vol. 5(9): 1050-1060.
Remund, D. L. (2010). Financial Literacy Explicated: The Case for a Clearer Definition in an Increasingly Complex Economy. Journal of Consumer Affairs. Vol. 44(2): 276-295. doi: https://doi.org/10.1111/j.1745-6606.2010.01169.x.
Sarah, N. (2009). Financial Knowledge, Locus Of Control, Culturalvalues And Financial Behaviour Among New Vision Employees. (Unpublished Thesis). Kampala, Uganda: University Kampala.
Sardiana, A. (2016). The Impact of Literacy to Shariah Financial Service Preferences. Etikonomi. Vol. 15 (1): 43-62. doi: https://doi.org/10.15408/etk.v15i1.3115.
Scheresberg, C. D. B. (2013). Financial Literacy and Financial Behavior Among Young Adults: Evidence and Implications. Numeracy. Vol. 6(2): 1–21. doi: https:// doi.org/10.5038/1936-4660.6.2.5.
Sohn, S.-H., Joo, S. H., Grable, J. E., Lee, S., & Kim, M. (2012). Adolescents’ Financial Literacy: The Role of Financial Socialization Agents, Financial Experiences, and Money Attitudes in Shaping Financial Literacy Among South Korean Youth. Journal of Adolescence. Vol. 35(4): 969–980. doi: https://doi.org/10.1016/j.adolescence. 2012.02.002.
Sundjaja, R., Intanie, V., & Oriana, D. F. (2015) Perencanaan Keuangan untuk Memasuki Masa Pensiun Pada Karyawan di Institusi Pendidikan Swasta X di Bandung (Financial planning for Retirement On employees in X Private Education Institutions in Bandung). (Unpubished Thesis). Bandung, Indonesia: Universitas Katolik Parahyangan.
Vitt, L. A., Anderson, C., Kent, J., Lyter, D. M., Siegenthaler, J. K., & Ward, J. (2000). Personal Finance and the Rush Competence Financial Literacy Education in the U.S. Working Paper. Virginia: Institute for Socio-Financial Studies.
Warsono. (2010). Prinsip-prinsip dan Praktik Keuangan Pribadi (The Principles and Practice of Personal Finance). Journal of Science. Vol. 13(2): 137–152.
Yidririm, M., Bayram, F., Oguz, A., & Günay, G. (2017). Financial Literacy Level of Individuals and Its Relationship to Demographic Variables. Mediterranean Journal of Social Science. Vol. 8 (3): 19-26.
DOI: 10.15408/etk.v17i2.6681
Refbacks
- There are currently no refbacks.
Copyright (c)
