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The influence of financial knowledge on financial management behavior with locus of control and financial attitude as mediation variables study on Generation Z Of pay-later E-Commerce users in Java

Author

Listed:
  • Ahmad Fathoni Ardyansyah

    (Brawijaya University)

  • Nur Khusniyah Indrawati

Abstract

The rapid development of Financial Technology (Fintech) has had an impact on Indonesia's digital economy. Paylater has become the service people choose to meet their daily needs in addition to the increasing number of business transactions carried out electronically (ecommerce). The increase in the use of paylaters in e-commerce increases every year, accompanied by negative impacts such as impulsive buying and consumptive behavior that can befall users and heve derimental impact, especially Generation Z on the island of Java, if they do not have good Financial Management Behavior. The unique phenomenon that currently occuring is that there is an increase in the knowledge possessed but the Non Performing Loan (NPL) rate is also high. This research aims to determine the factors that influence of Financial Knowledge on Financial Management Behavior with Locus of Control and Financial Attitudes as mediation. This research is categorized as explanatory research. The respondents in this study were Generation Z e-commerce paylater users on the island of Java. The sample size in this study was determined using a purposive sampling technique with a total sample of 317 respondents. The data collection method uses a questionnaire, data is analyzed using PLS-SEM. The research results show that Financial Knowledge influences Financial Management Behavior and Locus of Control and Financial Attitudes as a psychological variable added based on Behavioral Finance partially mediate this relationship. It is hoped that beside from increasing their knowledge, ecommerce paylater users on the island of Java must have faith for what in what they can get in the future is controlled by themselves and attitudes in carrying out financial management. Key Words:Paylater,, Financial knowledge, Locus of Control, Financial Attitude, Financial Management Behavior

Suggested Citation

  • Ahmad Fathoni Ardyansyah & Nur Khusniyah Indrawati, 2024. "The influence of financial knowledge on financial management behavior with locus of control and financial attitude as mediation variables study on Generation Z Of pay-later E-Commerce users in Java," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 13(4), pages 265-276, June.
    • Handle: RePEc:rbs:ijbrss:v:13:y:2024:i:4:p:265-276
    DOI: 10.20525/ijrbs.v13i4.3391
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    References listed on IDEAS

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    1. Baker, H. Kent & Filbeck, Greg & Ricciardi, Victor (ed.), 2017. "Financial Behavior: Players, Services, Products, and Markets," OUP Catalogue, Oxford University Press, number 9780190269999.
    2. Sam Allgood & William B. Walstad, 2016. "The Effects Of Perceived And Actual Financial Literacy On Financial Behaviors," Economic Inquiry, Western Economic Association International, vol. 54(1), pages 675-697, January.
    3. Sondra G. Beverly & Marianne A. Hilgert & Jeanne M. Hogarth, 2003. "Household financial management: the connection between knowledge and behavior," Federal Reserve Bulletin, Board of Governors of the Federal Reserve System (U.S.), issue Jul, pages 309-322.
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