Abstract
Millennials are now the largest population groupings in Indonesia, therefore their decisions in financial matters have significant implications for themselves as well as the country’s economy. This paper is aimed to evaluate the level of financial literacy possessed by the Millennials and their attitudes towards making key financial decisions. Data were collected through questionnaire of 30 questions with 15 questions regarding financial literacy and 15 questions related to financial decision making, with the participants in the study consists of 446 individuals who were born from 1980s to 2000s. The result reveals that better financial literacy leads to better financial decision at 1% significance level. This study also indicates that, although demographic profiles such as gender, education, length of working experience, income, number of credit card ownership and mother education have positive correlation with the level of financial literacy, they do not have moderating effect to the financial literacy and financial decision making of the millennials
Highlights
The availability of wide financial access and financial infrastructure play pivotal role in economic development
This study finds that credit card users learned about credit card users have higher score of financial literacy, which indicates that they learned about credit management and other financial decision making as they owned them
This study on the Indonesian Millennials shows that their financial literacy is positively related to their financial decision making, and financial literacy appear to be especially important for influencing financial decision making
Summary
The availability of wide financial access and financial infrastructure play pivotal role in economic development. Countries with lower financial inclusion, often have a greater suffering from poverty, greater income inequality and slower economic growth (Demirgüç-Kunt & Klapper, 2013), and the demand of financial services in a country are influenced by financial literacy of the individuals This is due to the nature that people will demand more financial products if they are comfortable using them, and their understanding about financial management will strengthen along with their relationship with banks or other financial institution. Data from Indonesia Central Bureau of Statistics in 2017 shows Millennials (those who were born from 1980s to 2000s) as the largest population groupings in Indonesia, amounted around 88 million or 33,75% of the total country’s population This means that their decisions in financial matters will have significant implications, not just for themselves, and to the country’s economy in overall (compared to any birth cohort), and their economic influence is expected to grow over the decade. This fact makes the need for financial literacy among millennials more crucial compared to the prior generations, since it will help their understanding about the basics of finance which in the end will help them to increase their earning potential and strengthen the nation economy in future
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Dinasti International Journal of Education Management And Social Science
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
