The Role of Finance Literacy Moderation on the Influence of Lifestyle and Financial Technology on the Consumption Behavior of the Millennial Generation in the City of Denpasar, Bali-Indonesia

Abstract

The millennial generation is currently facing various challenges including limited financial resources and the rising cost of living. Therefore, knowledge in personal financial management is needed to help them make the right financial decisions. The character of the millennial generation who is impulsive in shopping and has poor financial planning must immediately be given a solution for consumptive behavior that occurs because of excessive consumption intentions. This research aims to analyze the moderating role of financial literacy on the influence of lifestyle and financial technology on the consumptive behavior of the millennial generation in Denpasar. Data were collected through a questionnaire instrument (Likert Scale) which had been tested for validity and reliability. While the sample is determined as many as 95 people with incidental sampling technique. Furthermore, the collected data were analyzed using the SEM-PLS analysis technique. The result of the research is that lifestyle and the use of financial technology directly have a positive and significant impact on the consumptive behavior of the millennial generation in Denpasar City. Second, financial literacy directly has a positive and insignificant effect on the consumptive behavior of students. This positive coefficient value indicates the opposite direction, meaning that the better the increase in financial literacy of the millennial generation, the more consumptive behavior will increase. Third, there is a positive and significant influence on the interaction of financial literacy with lifestyle and the interaction of financial literacy with the use of lifestyle technology on consumptive behavior.