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Measuring financial satisfaction of Indonesian young adults: a SEM-PLS analysis

Author

Listed:
  • Farizka Shafa Nabila

    (Telkom University)

  • Mahendra Fakhri

    (Telkom University)

  • Mahir Pradana

    (Telkom University)

  • Budi Rustandi Kartawinata

    (Telkom University)

  • Anita Silvianita

    (Telkom University)

Abstract

People in Indonesia, particularly members of Generation Z, frequently struggle to manage their financial situation both now and in the future. The problem is brought on by a lack of understanding of financial investments. The purpose of this study is to ascertain the financial standing of Generation Z. A questionnaire with 100 respondents was employed in this investigation. In this study, financial attitudes serve as the independent variable, financial management serves as the intervention variable, and financial satisfaction serves as the dependent variable. A Likert scale was utilized as the measurement in the quantitative research technique. In this work, structural equation modeling (SEM) and SmartPLS software were utilized to process the data. The financial attitude variable has a positive and significant impact on financial happiness that is mediated by financial management. We also offer some recommendations and future research directions related to this topic.

Suggested Citation

  • Farizka Shafa Nabila & Mahendra Fakhri & Mahir Pradana & Budi Rustandi Kartawinata & Anita Silvianita, 2023. "Measuring financial satisfaction of Indonesian young adults: a SEM-PLS analysis," Journal of Innovation and Entrepreneurship, Springer, vol. 12(1), pages 1-13, December.
    • Handle: RePEc:spr:joiaen:v:12:y:2023:i:1:d:10.1186_s13731-023-00281-4
    DOI: 10.1186/s13731-023-00281-4
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    References listed on IDEAS

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    1. Kaiser, Tim & Lusardi, Annamaria & Menkhoff, Lukas & Urban, Carly, 2022. "Financial education affects financial knowledge and downstream behaviors," Journal of Financial Economics, Elsevier, vol. 145(2), pages 255-272.
    2. Azwadi Ali & Mohd Rahman & Alif Bakar, 2015. "Financial Satisfaction and the Influence of Financial Literacy in Malaysia," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 120(1), pages 137-156, January.
    3. Balaji, M.S. & Jiang, Yangyang & Singh, Gurbir & Jha, Subhash, 2020. "Letting go or getting back: How organization culture shapes frontline employee response to customer incivility," Journal of Business Research, Elsevier, vol. 111(C), pages 1-11.
    4. Annamaria Lusardi, 2019. "Financial literacy and the need for financial education: evidence and implications," Swiss Journal of Economics and Statistics, Springer;Swiss Society of Economics and Statistics, vol. 155(1), pages 1-8, December.
    5. Agus Zainul Arifin, 2018. "Influence Factors toward Financial Satisfaction with Financial Behavior as Intervening Variable on Jakarta Area Workforce," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 90-103.
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    Cited by:

    1. Eka Pramudita & Hendra Achmadi & Hansa Nurhaida, 2023. "Determinants of behavioral intention toward telemedicine services among Indonesian Gen-Z and Millenials: a PLS–SEM study on Alodokter application," Journal of Innovation and Entrepreneurship, Springer, vol. 12(1), pages 1-21, December.

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