Abstract
The aim of the study on the financial behavior of youth employees is to review the impact of financial capability, income on financial behavior in evaluating the financial position. The main target of this study is mediating the evaluation of financial behavior in the effort of increasing the financial position of youth employees. A research method conducts with a survey of 100 youth employees in Indonesia, particularly in Central Jakarta, that has more youth employees. Data from youth employees obtain through questionnaires and data is processed by SmartPLS; remember that analysis technique is using the path analysis model. Research results found that financial capability and income have a truly significant impact on financial behavior; likewise, it is directly to financial position. However, it known that financial behavior cannot directly influence to financial position. Research novelty explains that financial behavior cannot be mediation between financial capability and income to financial position. This finding is useful for youth employees in understanding the financial position and for the government in comprehending the financial behavior of youth employees. So, it expects to be able to give the policy of financial management for youth employees.
Highlights
Financial management is applied to companies and to someone’s personal as workforce (Holmes and Maghrebi, 2016)
Based on the research objectives, this study focuses on studying financial behavior, which is influenced by financial capability and income in evaluating the financial position
Financial capability and income have a positive impact on financial position
Summary
Financial management is applied to companies and to someone’s personal as workforce (Holmes and Maghrebi, 2016) In this case, it relates to financial control in and out monthly for workers or people in business (Pedersen and Sudzina, 2012). There are not a few mistakes in financial management effects in unclear assets owned by someone (Wong et al, 2018) When it has entered the millennial era, or it is commonly known as management era 4.0 relates to the digitalization of every economic process and human life (Killip, 2013). The practice needs to be evaluated, especially in the millennial era where all of economic activity is not easy to be predicted (Chen and Lin, 2015) This evaluation is carried out to prepare youth employees when they were able to control to their financial position
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