KnE Social Sciences

Published date: Mar 22 2021

Journal Title: KnE Social Sciences

Issue title: 7th International Conference on Entrepreneurship (7th ICOEN)

Pages: 636–654

DOI: 10.18502/kss.v5i5.8848

I Gede Adiputragedea@fe.untar.ac.idFaculty of Economics and Business of Tarumanagara University, Jakarta, Indonesia

Abstract The purpose of this study was to analyze the effect of financial literacy, financial attitude and locus of control on financial satisfaction. The sample was collected using a non-probability method through purposive sampling. The 146 participants were stock investors. Data were analyzed using the SEM- PLS method with the Smart PLS 3.2.8 application. Financial literacy had a significant effect on financial satisfaction, which shows that people who have knowledge of finance will achieve a level of satisfaction in planning and managing personal finances. Financial attitude had a significant effect on financial satisfaction, indicating that financial attitude will influence people’s behavior in making decisions. Locus of control had a significant effect on financial satisfaction, which shows that people who have good control will have satisfaction in planning, managing and making personal financial decisions.

Keywords: financial literacy, financial attitude, locus of control, financial satisfaction

[1] Abdillah, W. and Hartono, J. (2015). Partial Least Square (PLS). Yogyakarta: Penerbit Andi.

[2] Al-Kholilah, N. and Iramani, R. (2013). Studi Financial Management Behavior Pada Masyarakat Surabaya. Journal of Business and Banking, vol. 3, issue 1, pp. 69-80.

[3] Ameliawati, M. and Setiyani, R. (2018). The Influence of Financial Attitude, Financial Socialization, and Financial Experience to Financial Management Behavior with Financial Literacy as the Mediation Variable. International Conference on Economics, Business and Economic Education 2018, KnE Social Sciences, vol. 3, issue 10, pp. 811-832.

[4] Andani, N. D. (2018). Pengaruh Income, Financial Knowledge, Financial Behavior dan Childhood Consumer Experience Terhadap Financial Satisfaction Pada Pegawai PT. Perusahaan Listrik Negara (Persero) Wilayah Sumatera Utara. Medan: Univesitas Sumatera Utara.

[5] Besri, A. (2018). Pengaruh Financial Attitude, Financial Knowledge, dan Locus of Control terhadap Financial Management Behavior. Yogyakarta: Fakultas Ekonomi Universitas Islam Indonesia Yogyakarta.

[6] Case, K. R. (2007). Economic Principles (8th ed.). New York: Pearson.

[7] Chen, H. and Volpe, R. P. (1998). An Analysis of Personal Financial Literacy Among College Students. Financial Service Review, vol. 7, issue 2, pp. 107-128.

[8] Deyola, Y. (2014). Pengaruh Pengetahuan Keuangan dan Sikap Keuangan terhadap Keputusan Menabung pada Produk Tabungan di Perbankan. Bandung: Universitas Pendidikan Indonesia.

[9] Dew, J. and Xiao, J. J. (2011). The Financial Management Behavior Scale: Development and Validation. Journal of Financial Counseling and Planning, vol. 22, issue 1, pp. 19-35.

[10] Falahati, L., Sabri, F. and Laily, H. J. (2012). Assessment Model of Financial Satisfaction Predictors: Examining the Mediate Effect of Financial Behavior and Financial Strain. World Applied Sciences Journal, vol. 20, issue 2, pp. 190-197.

[11] Heck, R. K. Z. (1999). Trent Elizabeth. The Prevalence of Family Business from A Household Sample. Fam Bus Rev, vol. 12, issue 3, pp. 209-224.

[12] Henager, R. and Anong, S. T. (2014), Financial Education, Financial Literacy, and Financial Satisfaction. American Council on Consumer Interests, vol. 60, issue 0, pp. 1-7.

[13] Herdjiono, I. and Damanik, A. (2016). Pengaruh Financial Attitude, Financial Knowledge, Parental Income Terhadap Financial Management Behavior. Jurnal Manajemen Teori dan Terapan, vol. 9, issue 1, pp. 226-241.

[14] Hira, T. and Mugenda, O. (1998). Predictors of Financial Satisfaction: Differences Between Retirees and Non-Retirees. Journal Financial Counseling and Planning, vol. 9, issue 2, pp. 48-75.

[15] Hilgert, M. A., Hogarth, J. M. and Baverly, S. (2003). Household Financial Management: The Connection between Knowledge and Behavior. Federal Reserve Bulletin, vol. 89, issue 7, pp. 309-322.

[16] Humaira, I. and Sagoro, E. M. (2018). Pengaruh PengetahuanKeuangan, Sikap Keuangan Kepribadian terhadap Perilaku Manajemen Keuangan pada Pelaku UMKM Sentra Kerajinan Batik Kabupaten Bantul. Jurnal Nominal, vol. 7, issue 2, pp. 75-84.

[17] Ida, I. and Dwinta, C. Y. (2010). Pengaruh Locus of Control, Financial Knowledge, Income Terhadap Financial Management Behavior. Jurnal Bisnis dan Akuntansi, vol. 12, issue 3, pp. 131-144.

[18] Parrotta, J. L. and Johnson, P. J. (1998). The Impact of Financial Attitudes and Knowledge on Financial Management and Satisfaction of Recently Married Individuals. Westerville: Association for Financial Counseling and Planning Education.

[19] Joo, S. and Grable, J. E. (2004). An Exploratory Framework of the Determinants of Financial Satisfaction. Journal of Family and Economics, vol. 25, Issues 1, pp. 25-50.

[20] Kesavayuth, D., K, K. M. and Zikos, V. (2018). Locus of Control and Financial Risk Attitudes. Economic Modelling. Netherlands: Elsevier.

[21] Kholihah, N. A. and Iramani, R. (2013). Studi Financial Management Behavior Pada Masyarakat Surabaya. Journal of Business and Banking, vol. 3, issue 1, pp. 69-80.

[22] Kompas. (2015, Agustus). Retrieved on 23 August from https://ekonomi.kompas.com/read/2015/08/08/ 110746226/OJK.Orang.Indonesia.Makin. Konsumtif

[23] Lusardi, A. (2008). Household Saving Bahavior: The Role of Financial Literacy, Information, and Financial Education Programs. NBER Working Paper13824, pp. 1-44.

[24] Mankiw, N. G. (2003). Pengantar Ekonomi (2nd ed.). Jakarta: Erlangga.

[25] Marsh, B. A. (2006). Examining The Personal Financial Attitudes, Behavior and Knowledge Levels of First Year and Senior Students at Baptist Universities in The State of Texas. Ohio: Bowling Green State University.

[26] Mc Gee, A. (2013). How to Perception of Control Influence Unemployed Job Search. Department of Economics Simon Fraser University. Canada.

[27] Mien., T. (2015). Factors Affecting Personal Financial Management Behavior: Evidence from Vietnam. Presented at Proceedings of The Second Asia-Pacific Conference on Global Business, Economics, Finance and Social Sciences (AP 15Vietnam Conference July, 2015). Vietnam: University of Economics Ho Chi Minh City.

[28] Mugenda, O. M. (1990). Assessing the Causal Relationship among Communication, Money Management Practices, Satisfaction with Financial Status, and Satisfaction with Quality of Life. Lifestyles: Family and Economic Issues, vol. 11, issue 4, 343-360.

[29] Pankow, D. (2003). Financial, Values, Attitudes and Goals. North Dakota: North Dakota State University Fargo.

[30] Pavot, W. and Diener, E. (2008). The Satisfaction With Life Scale and The Emerging Construct of Life Satisfaction. The Journal of Positive Psychology, vol. 3, issue 2, pp. 137-152.

[31] Phung, A. (2016). Behavioral Finance: Introduction. New York: Investopedia.

[32] Praag, V. and Carbonell, F. (2001). Life Satisfaction Differences between Workers and Non-Workers. Timbergen Institute Discussion Papers, vol. 18, issue 3, pp. 1-23.

[33] Poduska, B. and Turman S. (1990). Empat Teori Kepribadian. Jakarta: Radar Jaya Offset.

[34] Rajna, A., et al. (2011). Financial Management Attitude and Practice among the Medical Practitioners in Public and Private Medical Service in Malaysia. International Journal of Business and Management, vol. 6, issue 8, pp. 105-113.

[35] Yap, R. Y. C., Komalasari, F. and Hadiansah, I. (2016). The Effect of Financial Literacy and Attitude on Financial Management Behavior and Satisfaction. International Journal of Administrative Science & Organization, vol. 23, issue 3, pp. 141-146.

[36] Rotter, J. B. (1966). Generalized Expectancies for Internal Versus External Control of Reinforcement. Psychological Monographs, vol. 80, issue 1, p. 1.

[37] Robb, C. A. and Woodyard, A. S. (2011), Financial Knowledge and Best Practice Behavior. Journal of Financial Counseling and Planning, vol. 22, issue 1, pp. 60-87.

[38] Robbins, S. P. and Judge, T. A. (2008). Organizational Behavior (vol.1, issue 12). Jakarta: Salemba Empat.

[39] Sabri, M., et al. (2008). Financial Behavior and Problems among College Studentsin Malaysia: Research and Education Implication. Consumer Interest Anual, vol. 54, pp. 166-170.

[40] Sahi, S. (2013). Demographic and Socio Economic Determinants of Financial Satisfaction. International Journal of Socio Economics, vol. 20, issue 2, pp. 127-150.

[41] Sekaran, U. and Bougie, R. (2013). Research Methods for Business: A Skill- Building Approach (6th ed.). West Sussex: John Wiley & Sons, Inc.

[42] Sarah, N. (2009). Financial Knowledge, Locus of Control, Cultural Values and Financial Behavior among New Vision. Kampala: Makerere University.

[43] Sina, P. G. (2004). Tipe Kepribadian Dalam Personal Finance. Jurnal Ilmiah Bisnis dan Ekonomi Asia, vol. 8, issue 1, pp. 54-59.

[44] Zahera, S. A. and Bansal, R. (2018). Do Investors Exhibit Behavioral Biases in Investment Decision Making? A Systematic Review, Qualitative Research in Financial Markets, vol. 10, issue 2, pp. 210-251.

[45] Toscano, E., Amestory, and Delrosal. (2006). Building Financial Satisfaction. Social Indicators Research, vol. 77, issue 2, pp. 1-30.

[46] Woodyard, A. S. and Robb, C. A. (2016). Consideration of Financial Satisfaction: What Consumers Know, Feel and Do from a Financial Perspective. Journal of Financial Therapy, vol. 7, issue 2, pp. 41-61.

[47] Xiao, J. J., et al. (2007). Academic Success and Well-Being of College Students: Financial Behaviors Matter. Tucson: Take Charge American Institute for Consumer Financial Education and Research, The University of Arizona.

[48] Yap, R. J. A. C., Farida, K. and Ihsan, H. (2016). The Effect of Financial Literacy and Attitude on Financial Management Behavior and Satisfaction. International Journal of Administrative Science and Organization, vol. 23, issue 3, pp. 141-146.