THE ROLE OF FINANCIAL BEHAVIOR IN DEVELOPING FINANCIAL WELL-BEING AMONG CAREER WOMEN IN EAST JAVA
Abstract
The study has two purposes. First, to analyze the determinants of financial behavior and its impact on the financial well-being of career women. The determinants are lifestyle and self-efficacy. The primary data was collected from career women living in five big cities in East Java Province of Indonesia: Surabaya, Sidoarjo, Malang, Madiun and Tuban, accumulating the total respondents of 231 selected using a purposive sampling technique. Data were analyzed using structural equation modeling supported by SmartPLS 4.0. Data were analyzed first to test the causal impact of the determinants on financial behavior; the second was to test the roles mediating the role of knowledge, status and income on the cause of financial behavior on financial well-being. This study confirms that the better self-efficacy the career women have in their finance, the better their financial management behavior they have. Referring to the lifestyle level, the lower the career women have, the better financial management behavior they have. The role of financial behavior also showed promising results where the better the financial management behavior the career women have, the better their financial well-being they hold. Referring to the mediation roles, Financial management behavior is mediating the effects of self-efficacy and lifestyle on the career women’s financial well-being. At the same time, the role of moderators showed that financial literacy and income do not make the effects of financial management behavior on financial well-being stronger or weaker.
Keyword : Self-Efficacy, Lifestyle, Financial Behavior, Financial Well-being, Income, Financial Literacy
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
Arofah, A. A. (2021). Pengaruh Literasi Keuangan dan Self Efficacy terhadap Perilaku Keuangan. Perwira Journal of Economics and Business (PJEB), 1(1), 6. Aulia, N., Yuliati, L. N., & Muflikhati, I. (2019). Kesejahteraan Keuangan Keluarga Usia Pensiun: Literasi Keuangan, Perencanaan Keuangan Hari Tua, dan Kepemilikan Aset. Jurnal Ilmu Keluarga Dan Konsumen, 12(1), 38–51. https://doi.org/10.24156/jikk.2019.12.1.38 Azizah, N. S. (2020). Pengaruh Literasi Keuangan, Gaya Hidup Pada Perilaku Keuangan Pada Generasi Milenial. Prisma (Platform Riset Mahasiswa Akuntansi), 01(02), 92–101. Bonke, J., & Browning, M. (2003). The distribution of well-being and income within the household, Welfare Distribution, Working Paper 1. (Issue March). 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. Brilianti, T. R., & Lutfi, L. (2020). Pengaruh pendapatan, pengalaman keuangan dan pengetahuan keuangan terhadap perilaku keuangan keluarga di kota Madiun. Journal of Business and Banking, 9(2), 197. https://doi.org/10.14414/jbb.v9i2.1762 Chen, H., & Volpe, R. P. (1998). An analysis of personal financial literacy among college students. Financial Services Review, 7(2), 107–128. Chie Tie, S., & Nizam, D. I. (2015). Determinants of Financial Well-Being for Generation Y in Malaysia. International Journal of Accounting and Business Management, 3(2), 11–28. https://doi.org/10.24924/ijabm/2015.11/v3.iss2/11.28 Danes, S. M., & Haberman, H. R. (2007). Teen financial knowledge, self-efficacy, and behavior: A gendered view. Journal of Financial Counseling and Planning, 18(2), 48–60. Dewi, I. A. K., & Rochmawati, R. (2020). Pengaruh Money Attitude Terhadap Perilaku Pengelolaan Keuangan Pribadi: Pengetahuan Dan Financial Self-Efficacy Sebagai Moderasi. Jurnal Pendidikan Ilmu Sosial, 30(2), 123–134. https://doi.org/10.23917/jpis.v30i2.10956 Dolan, P., Peasgood, T., & White, M. (2008). Do we know what makes us happy? A review of the economic literature on the factors associated with subjective well-being. Journal of Economic Psychology, 29(1), 94–122. https://doi.org/10.1016/j.joep.2007.09.001 Ganglmair-Wooliscroft, A., & Lawson, R. (2011). Subjective well-being of different consumer lifestyle segments. Journal of Macromarketing, 31(2), 172–183. https://doi.org/10.1177/0276146710393251 Gerbino, M. (2020). Self‐efficacy. The Wiley Encyclopedia of Personality and Individual Differences, 1994, 387–391. https://doi.org/10.1002/9781119547174.ch243 Chasmy, M., Rosa-Díaz, I. M., & Gaskin, J. E. (2021). The Roles of Supervisory Support and Involvement in Influencing Scientists' Job Satisfaction to Ensure the Achievement of SDGs in Academic Organizations. SAGE Open, 11(3). https://doi.org/10.1177/21582440211030611 Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2–24. https://doi.org/10.1108/EBR-11-2018-0203 Herawati, N. T., Candiasa, I. M., Yadnyana, I. K., & Suharsono, N. (2018). Factors That Influence Financial Behavior Among Accounting Students in Bali. International Journal of Business Administration, 9(3), 30. https://doi.org/10.5430/ijba.v9n3p30 Ida, & Dwinta, C. Y. (2010). Pengaruh Locus of Control, Financial Knowledge, Income Terhadap Financial Management Behavior. Jurnal Bisnis Dan Akuntansi, 12(3), 131–144. Iramani, R., & Lutfi, L. (2021). An integrated model of financial well-being: The role of financial behavior. Accounting, 7(3), 691–700. https://doi.org/10.5267/j.ac.2020.12.007 Ismail, S., Faique, F. A., Bakri, M. H., Zain, Z. M., Idris, N. H., Yazid, Z. A., Daud, S., & Taib, N. M. (2017). The role of financial self-efficacy scale in predicting financial behavior. Advanced Science Letters, 23(5), 4635–4639. https://doi.org/10.1166/asl.2017.8992 Kholilah, N. Al, & Iramani, R. (2013). Studi Financial Management Behavior Pada Masyarakat Surabaya. 3(1), 69–80. Kusnandar, D. L., & Kurniawan, D. (2018). Literasi Keuangan Dan Gaya Hidup Ibu Rumah Tangga Dalam Membentuk Perilaku Keuangan Keluarga Di Kota Tasikmalaya. Seminar Nasional Dan Call for Paper Sustainable Competitive Advantage, September, 1–13. Lee, J. M., Lee, J., & Kim, K. T. (2020). Consumer Financial Well-Being: Knowledge is Not Enough. Journal of Family and Economic Issues, 41(2), 218–228. https://doi.org/10.1007/s10834-019-09649-9 Lusardi, A., & Mitchell, O. (2007). Financial Literacy and Retirement Planning: New Evidence from the Rand American Life Panel. MRCC Working Paper, 1–33. Nurlaila, I. (2020). Faktor-Faktor yang Mempengaruhi Mahasiswa dalam Mengelola Keuangan. Prisma (Platform Riset Mahasiswa Akuntansi), 01(01), 136–144. Pradiningtyas, T. E., & Lukiastuti, F. (2019). Pengaruh Pengetahuan Keuangan dan Sikap Keuangan terhadap Locus of Control dan Perilaku Pengelolaan Keuangan Mahasiswa Ekonomi. Jurnal Minds: Manajemen Ide Dan Inspirasi, 6(1), 96. https://doi.org/10.24252/minds.v6i1.9274 Pramedi, A. D., & Asandimitra, N. (2021). Pengaruh financial literacy, financial knowledge, financial attitude, income dan financial self efficacy terhadap financial management behavior entrepreneur lulusan perguruan tinggi di surabaya. Jurnal Ilmu Manajemen, 9(2), 572–586. Putri, M. H., & Pamungkas, A. S. (2019). Pengaruh Financial Knowledge , Locus of Control dan Financial Self Efficacy Terhadap Financial Behavior. Jurnal Manajerial Dan Kewirausahaan, Vol. I(No. 4), 890–889. Qamar, M. A. J., Khemta, M. A. N., & Jamil, H. (2016). Knowledge and financial self-efficacy moderate the relationship between money attitudes and personal financial management behavior. European Online Journal of Natural and Social Sciences, 5(2), 296–308. Rizkiawati, N. L., & Asandimitra, N. (2018). Pengaruh demographic, financial knowledge, financial attitude, locus of control dan financial self-efficacy to financial management behavior public in Surabaya. Jurnal Ilmu Manajemen (JIM), 6(2010), 93–107. Sacks, D. W., Stevenson, B., & Wolfers, J. (2012). The new stylized facts about income and subjective well-being. Emotion, 12(6), 1181–1187. https://doi.org/10.1037/a0029873 Sari, S. R., Andriani, S., Reno, P., & Sari, K. (2020). Pengaruh Literasi Keuangan Dan Gaya Hidup Terhadap Perilaku Keuangan Aparatur Sipil Negara (ASN) Wanita Di Sumbawa Besar. Jurnal Ekonomi Dan Bisnis Indonesia, 05(02), 33–37. Shie, E. H., & Chang, S. H. (2022). Perceived Principal’s Authentic Leadership Impact on the Organizational Citizenship Behavior and Well-Being of Teachers. SAGE Open, 12(2). https://doi.org/10.1177/21582440221095003 Shim, S., Xiao, J. J., Barber, B. L., & Lyons, A. C. (2009). Pathways to life success: A conceptual model of financial well-being for young adults. Journal of Applied Developmental Psychology, 30, 708–723. https://doi.org/10.1016/j.appdev.2009.02.003 Shinta, R. E., & Lestari, W. (2019). Pengaruh Financial Knowledge , Lifestyle Pattern pada Perilaku Manajemen Keuangan Wanita Karir dengan Locus of Control sebagai Variabel Moderasi Manajemen. Journal of Business & Banking, 8(2), 271–283. https://doi.org/10.14414/jbb.v8i2.1524 Strömbäck, C., Lind, T., Skagerlund, K., Västfjäll, D., & Tinghög, G. (2017). Does self-control predict financial behavior and financial well-being? Journal of Behavioral and Experimental Finance, 14, 30–38. https://doi.org/10.1016/j.jbef.2017.04.002 Sugiono. (2006). Analisis tentang faktor-faktor yang Mempengaruhi Perilaku Konsumen (Tinjauan Teori). Jurnal Aplikasi Manajemen, 4. Sumani, S., & Roziq, A. (2020). Financial Literation: Determinants of Financial Well-Being in the Batik Small and Medium Industries in East Java. Jurnal Aplikasi Manajemen, 18(2), 289–299. https://doi.org/10.21776/ub.jam.2020.018.02.09 Syuliswati, A. (2020). Pendidikan Pengelolaan Keuangan Keluarga, Gaya Hidup, Pembelajaran Serta Pengaruhnya Terhadap Literasi Keuangan. Akutansi Bisnis & Manajemen ( ABM ), 27(1), 53. https://doi.org/10.35606/jabm.v27i1.553 Taft, M. K., Hosein, Z. Z., & Mehrizi, S. M. T. (2013). The Relation between Financial Literacy, Financial Wellbeing and Financial Concerns. International Journal of Business and Management, 8(11), 63–75. https://doi.org/10.5539/ijbm.v8n11p63 Vosloo, W., Fouche, J., & Barnard, J. (2014). The Relationship Between Financial Efficacy, Satisfaction With Remuneration And Personal Financial Well-Being. International Business & Economics Research Journal (IBER), 13(6), 1455. https://doi.org/10.19030/iber.v13i6.8934 West, T., Cull, M., & Johnson, D. (2021). Income is more important than financial literacy for improving well-being. Financial Services Review, 29, 187–207. Xiao, J. J., O’Neill, B., Sorhaindo, B., & Garman, E. T. (2005). Financially distressed consumers: Their financial practices, financial well-being, and health. Journal of Financial Counseling and Planning, 16(1), 73–87. Zemtsov, A. A., & Osipova, T. Y. (2016). Financial Well-being as a Type of Human Wellbeing: Theoretical Review. 385–392. https://doi.org/10.15405/epsbs.2016.02.49