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The effect of financial knowledge and financial well-being on investment intention mediated by financial attitude:A study on millennial generation and Gen Z in Malang City

Author

Listed:
  • Muhammad Ilyas

    (Faculty of Economic and Business, University of Brawijaya, Mahoni St.3, Jembatan Besi, Tarakan City, 77126 North Kalimantan, Indonesia)

  • Moeljadi

    (Professor, Faculty of Economic and Business, University of Brawijaya, Kompleks Uniga 9, 65144, Malang, Indonesia)

  • Achmad Helmy Djawahir

    (Ph.D, Faculty of Economic and Business, University of Brawijaya, Terusan Dieng Street 62-64, 65115, Malang, Indonesia)

Abstract

Investment intention in millennials and Gen Z in Indonesia grows yearly. However, the cause of the growing enthusiasm for investment among millennials and Gen Z is recently fear of being vulnerable to Fear of Missing Out (FOMO) behaviour alone, not based on financial factors such as financial knowledge, financial well-being and financial attitude. This study aims to determine the role of financial knowledge and financial well-being on investment intention mediated by financial attitude. This research belongs to the type of explanatory research. Respondents in this study are Millennials and Gen Z generations who invest and live in Malang City. Determination of the number of samples in this study using the purposive sampling technique with a total sample of 400 respondents. Methods of collecting data using a questionnaire, then analyzed using PLS-SEM. The study results confirm that financial knowledge positively affects investment intention. Financial well-being does not affect investment intention. Financial attitude has a positive influence on investment intention. Financial knowledge and financial well-being have a positive influence on financial attitude. Financial attitude can partially mediate the relationship between financial knowledge and investment intention. In addition, financial attitude can also mediate the relationship between financial well-being and investment intentions fully. Millennials and Gen Z are expected to improve financial knowledge and attitudes to increase interest in more targeted investments. This advice will also positively impact the Financial Well-being of millennials and Gen Z in the future. Key Words:Financial Knowledge, Financial Well-being, Financial Attitude, Investment Intention.

Suggested Citation

  • Muhammad Ilyas & Moeljadi & Achmad Helmy Djawahir, 2021. "The effect of financial knowledge and financial well-being on investment intention mediated by financial attitude:A study on millennial generation and Gen Z in Malang City," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 10(8), pages 175-188, December.
    • Handle: RePEc:rbs:ijbrss:v:10:y:2021:i:8:p:175-188
    DOI: 10.20525/ijrbs.v10i8.1530
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    References listed on IDEAS

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    2. Amagir, Aisa & Groot, Wim & van den Brink, Henriëtte Maassen & Wilschut, Arie, 2020. "Financial literacy of high school students in the Netherlands: knowledge, attitudes, self-efficacy, and behavior," International Review of Economics Education, Elsevier, vol. 34(C).
    3. Gamel, Johannes & Bauer, Andreas & Decker, Thomas & Menrad, Klaus, 2022. "Financing wind energy projects: An extended theory of planned behavior approach to explain private households’ wind energy investment intentions in Germany," Renewable Energy, Elsevier, vol. 182(C), pages 592-601.
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    Cited by:

    1. Olamide Olajide & Sabina Pandey & Ichchha Pandey, 2024. "Social Media for Investment Advice and Financial Satisfaction: Does Generation Matter?," JRFM, MDPI, vol. 17(9), pages 1-29, September.
    2. Khalid Abdul Ghafoor & Muhammad Akhtar, 2024. "Parents’ financial socialization or socioeconomic characteristics: which has more influence on Gen-Z’s financial wellbeing?," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 11(1), pages 1-16, December.

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