The effect of financial literacy and financial efficacy on individual financial management

Authors

  • Naili Saadah Universitas Islam Negeri Walisongo Semarang, Indonesia

DOI:

https://doi.org/10.21580/jiemb.2020.2.1.7688

Keywords:

financial literacy, financial efficacy, financial management, gender

Abstract

Purpose – This study aims to determine the effect of financial literacy and financial efficacy on financial management.

Method – Using mixed methods, namely quantitative and qualitative, this study managed to collect a sample of 307 respondents.

Result – This research provides evidence that the level of a person's financial knowledge can affect his financial management as well as his financial satisfaction, with these results directly this research strengthens the evidence that gender does not affect financial management. it's the habits or behaviors that lead someone to act.

Implication – This research can be used to understand behavioral financial management in individual level.

Originality – Many studies show that a society with good financial literacy will have an impact on the formation of a financially independent society. However, the problem here is that there is still discrimination against women regarding financial management. Basically, whether or not they are able to manage finances is not based on gender but on the behavior of the individual. To strengthen this, research is present to prove that individual behavior which includes the level of financial knowledge and financial satisfaction affects their financial management.

Downloads

Download data is not yet available.

References

Ariadi, R., Malelak, M. I., & Astuti, D. (2015). Analisa Hubungan Financial Literacy dan Demografi Dengan Investasi, Saving dan Konsumsi. Finesta, 3(1), 7–12.

Bandura, A. (1978). Self-efficacy: Toward a unifying theory of behavioral change. Advances in Behaviour Research and Therapy, 1(4), 139–161. https://doi.org/10.1016/0146-6402(78)90002-4

Brandon, D. P., & Smith, C. M. (2009). Prospective Teachers’ Financial Knowledge and Teaching Self-Efficacy. Journal of Family Consumer Sciences Education, 27(1), 14–28.

Dwiastanti, A., & Hidayat, W. (2016). Literasi Keuangan Ibu Rumah Tangga dalam Membentuk Perilaku Keuangan Keluarga. Prosiding SNA MK, 1–12.

Haque, Abdul; Zulfiqar, M. (2016a). Women ’ s Economic Empowerment through Financial Literacy , Financial Attitude and Financial Wellbeing. International Journal of Business and Social Science, 7(3), 78–88.

Haque, Abdul; Zulfiqar, M. (2016b). Women ’ s Economic Empowerment through Financial Literacy , Financial Attitude and Financial Wellbeing. International Journal of Business and Social Science, 7(3), 78–88.

Hofstede, G. (2001). Hofstede, Geert - Culture’s consequences_ comparing values, behaviors, institutions, and organizations across nations-SAGE (2001).pdf. sage publication.

Hofstede, G. (2011). Dimensionalizing Cultures: The Hofstede Model in Context. Psychology and Culture, 2(1), 116–130. https://doi.org/10.1177/0305735616650994

Krishna, A., Rofaida, R., & Sari, M. (2010). Analisis Tingkat Literasi Keuangan(Survey pada Mahasiswa Universitas Pendidikan Indonesia). Proceedings of The 4th International Conference on Teacher Education; Join Conference UPI & UPSI Bandung, Indonesia, November, 552–560.

Kumar, S., Tomar, S., & Verma, D. (2019a). Women’s financial planning for retirement: Systematic literature review and future research agenda. International Journal of Bank Marketing, 37(1), 120–141. https://doi.org/10.1108/IJBM-08-2017-0165

Kumar, S., Tomar, S., & Verma, D. (2019b). Women’s financial planning for retirement: Systematic literature review and future research agenda. International Journal of Bank Marketing, 37(1), 120–141. https://doi.org/10.1108/IJBM-08-2017-0165

Lusardi, A., & Mitchell, O. S. (2014). The economic importance of financial literacy: Theory and evidence. Journal of Economic Literature, 52(1), 5–44. https://doi.org/10.1257/jel.52.1.5

Lusardi, A., & Mitchelli, O. (2007). Financial literacy and retirement preparedness: Evidence and implications for financial education. Business Economics, 42(1), 35–44. https://doi.org/10.2145/20070104

Margaretha, F., & Pambudhi, R. A. (2015). Tingkat Literasi Keuangan Pada Mahasiswa S-1. Tingkat Literasi Keuangan Pada Mahasiswa S-1 Fakultas Ekonomi, 17(1), 76–85. https://doi.org/10.9744/jmk.17.1.76

Mustapha, M. (2015). Financial Literacy and Demographic Factors. Journal of Technology Management and Business, 2(1), 0–0.

Robb, C. A., & Sharpe, D. L. (2009). Effect of personal financial knowledge on college students’ credit card behavior. Journal of Financial Counseling and Planning, 20(1), 25–43.

Saadah, N. (2018). Perencanaan Keuangan Islam Sederhana dalam Bisnis E-Commerce pada Pengguna Online Shop. Economica: Jurnal Ekonomi Islam, 9(1), 105. https://doi.org/10.21580/economica.2018.9.1.2593

Sina, P. G. (2013). Financial Efficacy and Financial Satisfaction : Ditinjau dari Perbedaan Gender. Journal Manajemen Institute Transformasi Indoneis - NGO, 12(2), 173–184.

Widayat. (2010). Penentu Perilaku Berinvestasi. Ekonomika-Bisnis, 1(2), 111–128.

Woodyard, A., & Robb, C. (2012). Financial Knowledge and the Gender Gap. Journal of Financial Therapy, 3(1), 1–16. https://doi.org/10.4148/jft.v3i1.1453

Downloads

Published

2020-12-28

Issue

Vol. 2 No. 1 (2020)

Section

Articles

License

Authors who publish with this journal agree to the following terms:

Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.

Authors are able to 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 acknowledgement 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) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).