Analysis of Factors Affecting The Improvement of Financial Satisfaction of The Millennial Generation
Keywords:
Financial Behavior, Financial Satisfaction, Financial Self-efficacy, Millennial Generation, Risk Tolerance
Abstract
Financial satisfaction is a crucial factor in achieving prosperity. However, the contemporary situation is that the millennial age is perceived as having difficulty reaching financial contentment. This research aims to analyze the factors that significantly influence the level of financial satisfaction of the millennial generation in Pariaman, Indonesia. The method used in this research is a quantitative approach with survey data collection methods. The collected data was then analyzed using multiple linear regression analysis. A total of 100 millennial generation respondents were involved in this research. The results show that financial behavior, and primary agents significantly and positively affect financial satisfaction. On the other hand, risk tolerance, financial self-efficacy, secondary agents, and consumer’s childhood experience do not significantly influence financial satisfaction. This study contributes in improving the understanding of the factors influencing the financial contentment of millennials. The findings make theoretical and managerial advances by assisting millennials in understanding the factors that influence their financial happiness. Furthermore, these findings serve as a foundation for future studies into other factors influencing financial contentment among millennials in Indonesia.
References
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Rey-Ares, L., Fernández-López, S., Castro-González, S., & Rodeiro-Pazos, D. (2021). Does Self-control Constitute A Driver of Millennials’ Financial Behaviors and Attitudes? Journal of Behavioral and Experimental Economics, 93, 101702. https://doi.org/https://doi.org/10.1016/j.socec.2021.101702
Siswoyo, U. N. H., & Asandimitra, N. (2021). Pengaruh Income, Debt, Gender Differences, Financial Literacy, dan Financial Attitude terhadap Financial Satisfaction. Jurnal Ilmu Manajemen, 9(4), 1549–1562. https://doi.org/10.26740/jim.v9n4.p1549-1562
Tolani, K., Sao, R., Bhadade, P., & Chandak, S. (2020). Money and Generations: Financial Choices Made by Gen X and Gen Y. International Journal of Management, 11(4), 657–672. https://doi.org/10.34218/IJM.11.4.2020.063
Utkarsh, Pandey, A., Ashta, A., Spiegelman, E., & Sutan, A. (2020). Catch Them Young: Impact of Financial Socialization, Financial Literacy and Attitude towards Money on Financial Well-being of Young Adults. International Journal of Consumer Studies, 44(6), 531–541. https://doi.org/10.1111/ijcs.12583
Zameer, Q. A., & Devasagayam, R. (2015). Cognitive Dissonance and Buyers’ Coping Mechanisms: A Comparative Study of US and Indian Consumers. International Journal of Business Administration, 6(3), 1. https://doi.org/10.5430/ijba.v6n3p1
Al, Y. et. (2022). Optimization of Financial Satisfaction: Stimulant from Financial Literation and Inclusion for Society. Jurnal Organisasi Dan Manajemen, 18(1), 102–113.
Arifin, A. Z. (2018). Influence factors toward financial satisfaction with financial behavior as intervening variable on Jakarta area workforce. European Research Studies Journal, 21(1), 90–103.
Azizah, N. S. (2020). Pengaruh Literasi Keuangan, Gaya Hidup pada Perilaku Keuangan pada Generasi Milenial. Prisma (Platform Riset Mahasiswa Akuntansi), 1(2), 92=101.
Budiarto. (2017). Pengaruh Financial Literacy, Overconfidence, Regret Aversion Bias, dan risk Tolerance terhadap Keputusan Investasi (Studi pada Investor PT. Sucorinvest Central Gani Galeri Investasi BEI Universitas Negeri Surabaya). Jurnal Ilmu Manajemen, 5(2), 1–9.
Candra, J. W., & Memarista, G. (2015). Faktor-Faktor yang Mempengaruhi Financial Satisfaction pada Mahasiswa Universitas Kristen Petra. Finesta, 3(2), 1–6.
Darmawan, D., & Pamungkas, A. S. (2019). Pengaruh financial attitude, financial behavior, dan financial knowledge terhadap financial satisfaction. Jurnal Manajerial Dan Kewirausahaan, 1(2), 172–181.
Darmawan, D., & Pamungkas, S. (2019). Pengaruh Financial Attitude , Financial Behavior , Dan Financial Knowledge Terhadap Financial Satisfaction. Jurnal Manajerial Dan Kewirausahaan, 1(2), 172–181.
Dohmen, T., Non, A., & Stolp, T. (2021). Reference Points and The Tradeoff between Risk and Incentives. Journal of Economic Behavior \& Organization, 192, 813–831.
Farida, M. N., Soesatyo, Y., & Aji, T. S. (2021). Influence of Financial Literacy and Use of Financial Technology on Financial Satisfaction through Financial Behavior. International Journal of Education and Literacy Studies, 9(1), 86–95.
Farrell, L., Fry, T. R. L., & Risse, L. (2016). The Significance of Financial Self-efficacy in Explaining Women’s Personal Finance Behaviour. Journal of Economic Psychology, 54, 85–99. https://doi.org/https://doi.org/10.1016/j.joep.2015.07.001
Hair, J. F., Ortinau, D. J., & Harrison, D. E. (2017). Essentials of Marketing Research. In Absolute Essentials of Marketing Research (Fifth Edit). Mc-Graw Hill Education. https://doi.org/10.4324/9781003165194
Halim, Y. K. E., & Astuti, D. (2015). Financial Stressors, Financial Behavior, Risk Tolerance, Financial Solvency, Financial Knowledge, dan Kepuasan Finansial. Finesta, 3(1).
Hikmah, H., & Rustam, T. A. (2022). Analisis Financial Literacy dan Financial Attitude Terhadap Financial Management Behavior Dan Financial Satisfaction. Jurnal SNISTEK, 176–183.
Hutabarat, J., & Huseini, M. (2012). Strategi Pendekatan Komprehensif dan Terintegrasi “Strategic Excellence” dan “Operational Excellence” Secara Simultan. Universitas Indonesia (UI-Oress).
Ismail, I. A., Pernadi, N. L., & Febriyanti, A. (2022). How to Grab and Determine the Size of The Sample For Research. International Journal of Academic and Applied Research (IJAAR), 6(9), 88–92. www.ijeais.org/ijaar
Khatun, N. (2021). Applications of Normality Test in Statistical Analysis. Open Journal of Statistics, 11(01), 113.
Khawar, S., & Sarwar, A. (2021). Financial Literacy and Financial Behavior with The Mediating Effect of Family Financial Socialization in The Financial Institutions of Lahore, Pakistan. Future Business Journal, 7(1), 1–11. https://doi.org/10.1186/s43093-021-00064-x
Kumar, J., Rani, M., Rani, G., & Rani, V. (2023). What Do Individuals Know, Feel and Do from A Financial Perspective? An Empirical Study on Financial Satisfaction. International Journal of Social Economics, 51(6), 771–785. https://doi.org/https://doi.org/10.1108/IJSE-03-2023-0239
Lavery, M. R., Acharya, P., Sivo, S. A., & Xu, L. (2019). Number of predictors and multicollinearity: What are their effects on error and bias in regression? Communications in Statistics: Simulation and Computation, 48(1), 27–38. https://doi.org/10.1080/03610918.2017.1371750
LeBaron, A. B., & Kelley, H. H. (2021). Financial Socialization: A Decade in Review. Journal of Family and Economic Issues, 42(Suppl 1), 195–206.
Nabila, F. S., Fakhri, M., Pradana, M., Kartawinata, B. R., & Silvianita, A. (2023). Measuring Financial Satisfaction of Indonesian Young Adults: A SEM-PLS Analysis. Journal of Innovation and Entrepreneurship, 12(1), 1–13. https://doi.org/10.1186/s13731-023-00281-4
Nadeem, M., Bahadar, S., Gull, A. A., & Iqbal, U. (2020). Are Women Eco-friendly? Board Gender Diversity and Environmental Innovation. Business Strategy and the Environment, 29(8), 3146–3161. https://doi.org/10.1002/bse.2563
Noor, N., Batool, I., & Arshad, H. M. (2020). Financial Literacy, Financial Self-efficacy and Financial Account Ownership Behavior in Pakistan. Cogent Economics and Finance, 8(1). https://doi.org/10.1080/23322039.2020.1806479
Nurfatmawati, N. P. (2022). Analisis Pengaruh Financial Knowledge Dan Financial Behavior Terhadap Financial Satisfaction Pada Pekerja Generasi Milenial di Kota Malang. Jurnal Ilmiah Mahasiswa FEB, 10(2).
Prabowo, M. S., & Asandimitra, N. (2021). Faktor yang Memengaruhi Financial Satisfaction Pengguna E-Commerce di Surabaya. Jurnal Ilmu Manajemen, 9(1), 28.
Pratiwi, O. (2019). Pengaruh Financial Knowledge, Financial Behavior, Financial Efficacy & Risk Tolerance Terhadap Financial Satisfaction Pada Pegawai PT. Bank Mandiri ( Persero ) Kantor Pusat. Jurnal Dinamika Manajemen Dan Bisnis, 2(2), 1–11.
Pulungan, delyana rahmawany, Koto, M., & Syahfitri, L. (2018). Pengaruh Gaya Hidup Hedonis Dan Kecerdasan Emosional terhadap Perilaku Keuangan Mahasiswa. 401–406. Seminar Nasional Royal (SENAR), 401–406.
Purwoko, S. (2023). Involvement of The Millennial Generation in Boosting The Digital Economy in The Era of Society 5.0: Literature Study. Gema Wiralodra, 14(2), 716–723.
Rey-Ares, L., Fernández-López, S., Castro-González, S., & Rodeiro-Pazos, D. (2021). Does Self-control Constitute A Driver of Millennials’ Financial Behaviors and Attitudes? Journal of Behavioral and Experimental Economics, 93, 101702. https://doi.org/https://doi.org/10.1016/j.socec.2021.101702
Siswoyo, U. N. H., & Asandimitra, N. (2021). Pengaruh Income, Debt, Gender Differences, Financial Literacy, dan Financial Attitude terhadap Financial Satisfaction. Jurnal Ilmu Manajemen, 9(4), 1549–1562. https://doi.org/10.26740/jim.v9n4.p1549-1562
Tolani, K., Sao, R., Bhadade, P., & Chandak, S. (2020). Money and Generations: Financial Choices Made by Gen X and Gen Y. International Journal of Management, 11(4), 657–672. https://doi.org/10.34218/IJM.11.4.2020.063
Utkarsh, Pandey, A., Ashta, A., Spiegelman, E., & Sutan, A. (2020). Catch Them Young: Impact of Financial Socialization, Financial Literacy and Attitude towards Money on Financial Well-being of Young Adults. International Journal of Consumer Studies, 44(6), 531–541. https://doi.org/10.1111/ijcs.12583
Zameer, Q. A., & Devasagayam, R. (2015). Cognitive Dissonance and Buyers’ Coping Mechanisms: A Comparative Study of US and Indian Consumers. International Journal of Business Administration, 6(3), 1. https://doi.org/10.5430/ijba.v6n3p1
Published
2024-07-02
Section
Article
This work is licensed under a Creative Commons Attribution 4.0 International License.
