Personal Financial Management Research Articles

A STUDY SHOWING THE IMPORTANCE OF PERSONAL FINANCIAL MANAGEMENT STRATEGIES FOR AN INDIVIDUAL FOR OVERALL FINANCIAL WELLBEING

Personal financial management (PFM) is essential for individuals and families to achieve financial stability and meet their goals. This research highlights the different facts of PFM, including budgeting, saving, investing, debt management, retirement planning, and more. Drawing from extensive literature, it examines the dynamics of financial behaviour, the role of financial education, technological advancements, and socioeconomic factors influencing PFM. The research involves data collection from 102 participants, offering insights into financial behaviour, preferences, and attitudes. Discoveries unveil areas for enhancement in savings allocation, emergency preparedness, seeking professional advice, and retirement planning. Additionally, the study presents the "50/30/20 rule" as a practical framework for managing finances effectively. Overall, the study emphasizes the significance of comprehensive PFM strategies tailored to individual circumstances for long-term financial well-being. KEYWORDS: Personal financial management, PFM, budgeting, saving, investing, debt management, retirement planning, financial behaviour, financial education, socioeconomic factors, 50/30/20 rule.

Management of innovation and technology to guide financial education for guayaquil families

The work presented addresses the field of financial education and its necessity, starting from the identification of gaps within the surveyed population among families in the city of Guayaquil. There is a significant demand among young adults and those with lower incomes, indicating the urgency to provide tools and resources to improve personal financial management. Additionally, the widespread preference for interactive learning methods, such as applications and games, underscores the need to integrate technology and innovative approaches into financial education programs to increase participation and engagement. The diversity in educational and socioeconomic levels within the sample emphasizes the importance of designing programs that are accessible and adaptable to different demographic profiles, which implies offering a variety of resources and learning modalities to meet the individual needs of the population. Lastly, the low prior participation in financial education programs highlights the need to increase awareness and promotion of these programs among the population, involving implementing effective dissemination strategies to inform people about the availability and benefits of financial education. Taken together, these findings support the importance of developing financial education programs that are accessible, innovative, and tailored to the needs of the target population, in order to promote greater financial literacy and contribute to overall economic well-being.

Financial literacy of technical university students: self-assessment of the state and dynamics of its development

Introduction. In the context of the rapid development of digital financial technologies, an increase in banking services and fraudulent schemes, the problem of a low level of financial illiteracy among the population is becoming acute. Proper management of your own finances is useful knowledge that will help you achieve financial well-being and stability. Poor understanding of trends in the global economy and country development plans; response to advertising without critical thinking, recalculation of numbers, inability to see hidden commissions and other negative factors leading to loss of capital, all this is the reason for the formation of financial competence of the younger generation. The purpose of the study is to analyze technical university students’ self-assessment of their financial literacy. Materials and methods. The research material was based on survey data from 230 students of the Stupino branch of the Moscow Aviation Institute (Russian Federation). Statistical differences were assessed using the χ²-Pearson goodness-of-fit test. Results. It was revealed that digitalization and lockdown contributed to increasing the motivation of technical university students to master financial literacy: 99.1% of students use financial services, 76.1% of respondents are aimed at increasing their level of financial literacy and are ready to gain knowledge as part of the course program (54.3%) or through the introduction of a separate subject (36.1%) and only 9.6% of respondents believe that studying personal finance management issues at the university is maximized. The analysis showed that in a comparative analysis of respondents’ answers in 2020 and 2023, statistical differences are significant (χ²obs > χ²cr) for almost all questions of the second module. Thus, the observed value of the Pearson criterion χ²obs = 7.33 exceeds the critical value χ²cr = 3.84 at the significance level α = 0.05 by almost two times for questions about the key rate of the Central Bank. Students are interested in the discount rate, understanding its role in solving financial issues. For the group of issues related to investing in financial markets, statistical differences are also significant (χ²obs = 27.8 при χ²cr = 11.07, α = 0.05). Respondents in 2023 are showing greater interest in trends in the stock, foreign exchange and other markets. There are also significant statistical differences in the group of questions about acquiring knowledge in the field of financial literacy (χ²obs = 22.79, χ²cr = 5.99 at a significance level of α = 0.05). Engineering students surveyed in 2023 are ready to study personal finance management in college. Conclusion. The study showed the feasibility of introducing elective classes on financial literacy at a university, where innovative approaches using quest technologies, master classes, and intellectual and entertaining quizzes can help engineering students overcome gaps in managing their own finances.

Moneymate: A Finance Application

Abstract: Moneymate stands as a comprehensive finance application, simplifying personal finance management with ease and precision. It meticulously tracks daily expenditures, offering insightful visuals and categorizes expenses for effortless analysis of spending patterns. Serving as a centralized hub for financial information, it provides real-time updates on assets and currency values relative to the Indian Rupee, aiding informed decisions on investments and transactions. Beyond mere tracking, Moneymate empowers users with tools for goal setting, savings budgeting, and income optimization, fostering a proactive approach to financial planning. Personalized insights and actionable recommendations further enhance its utility in financial decision-making. With a user-friendly design and powerful functionalities, Moneymate transforms the landscape of personal finance management, simplifying tasks such as daily spending, asset management, currency conversion, and income tracking. Its holistic approach makes it an indispensable companion for individuals seeking control and empowerment over their financial health.

Exploring Financial Literacy: A Study of Socioeconomic Factors

This research project examines the relationship between socioeconomic factors and financial literacy among individuals in India. The study utilizes primary data collected through structured questionnaires from a diverse sample of respondents engaged in personal finance management. Descriptive analysis reveals that the average age of respondents is 24.4 years, with a wide range of income levels ranging from ₹0 to ₹200,000. Inferential analysis, including correlation and regression, indicates a significant positive correlation between income levels and financial literacy ratings. Furthermore, younger individuals and those with higher education and income levels exhibit better financial literacy. Based on these findings, the study recommends targeted financial education programs, early financial literacy initiatives, income-related interventions, and continuous learning opportunities to enhance financial literacy and promote economic stability in India. This research contributes to the understanding of the determinants of financial literacy and provides insights for policymakers, educators, and financial institutions to develop effective strategies for improving financial well-being in the Indian context.

BudgetBliss: Predictive Budget Planning using Neural Networks and Socioeconomic Factors

BudgetBliss is a transformative web application developed to revolutionize personal finance management through the integration of Artificial Neural Networks. Leveraging a sophisticated architecture, BudgetBliss provides users with a comprehensive platform to effectively plan and manage their income. The development process involved meticulous data collection and preprocessing, followed by the implementation of an Artificial Neural Network model. By analyzing users' spending habits and categorizing income, BudgetBliss offers detailed financial breakdowns tailored to individual needs. This methodology ensures the accuracy and relevance of the insights provided to users. Furthermore, BudgetBliss serves as an inadvertent educational tool, fostering financial literacy as users gain insights into their spending habits and make informed decisions about their money. Additionally, the automation of categorization, analysis of spending habits, and provision of personalized insights significantly reduce financial stress, empowering users to feel in control of their finances and focus on achieving their goals with confidence. In today's fast-paced society, where financial management significantly impacts overall well-being, BudgetBliss addresses the critical need for a system that enhances household financial control. By enabling users to make informed decisions and gain a deeper understanding of their financial landscape, BudgetBliss facilitates a path towards contentment and fulfillment in life. Keywords - Budget planning, Personal finance, Artificial Neural Networks, Financial management, Well-being

Peran Mediasi Faktor Demografi pada Pengaruh Financial Attitude, Locus of Control dan Financial Knowledge Terhadap Personal Financial Management Behavior: Study Kasus pada Pegawai Tetap Universitas Muhammadiyah Sumatera Utara

Research aims to testing the influence of financial attitudes, Locus of Control, financial knowledge on the behavior of personal financial management through the role of mediation factors of demographics focusing on age and working period of respondents studied. The population of this research is the remaining employee of the University of Muhammadiyah North Sumatra, which amounted to about 300. SPRESSING SCHAMED ABDER 75 respondents with Slovin formula to know the number of respondents is the employee remains University of Muhammadiyah North Sumatra. Methods of data collection wears a questionnaire. Data analysis using SmartPLS 4.1.0.0. The results of research, financial knowledge has a positive effect on demographic factors, financial knowledge has a positive effect on personal financial management behavior, and Locus of Control has a positive effect on behavior of personal financial management. Private personnel behavior is very important in life. Each individual has a certain level of financial knowledge to help apply the behavior of personal financial management. In addition, each individual is endowed with intelligence and level of personal financial knowledge that enables them to perform activities in financial management. Financial knowledge greatly has an effect on personal financial management behavior. The better financial knowledge, the better also financial management. A person's decision in financial management is also inseparable from the role of demographic factors of age and work. Age also affects the decision in the behavior of personal financial management. The higher the age and effort of individuals will be better as well as in the management of personal finances and can be more focus in the short-term and long-term personal management of the applicable appearance in the form of behavior

Money Talks: A Holistic and Longitudinal View of the Budget Basket in the Face of Climate Change and Sustainable Finance Matters

This study presents a holistic and longitudinal view of the household budget basket concerning climate change and sustainable finance matters. It aims to understand their impact on the budget basket by examining the relationship between money, climate change and sustainable finance in a global economy for transition countries. Comprehensive CPI data were collected in Kosovo from 2002 to 2022, and data analysis was performed using statistical methods such as t-tests and proximity matrixes in SPSS. The results show significant differences between the average and desired values within the budget basket, indicating changes in consumer behavior, particularly in food expenditures, budget allocations, and climate change impacts. Interesting patterns emerge, such as correlations between bread, cereals, and meat, and the absence of fish in some purchases. Spending on clothing and other goods also deviates from desired values. These findings highlight the complex relationship between money, climate change, sustainable finance, and consumer spending patterns, and underscore the need to address the gap between expected and desired spending values for the global economy in transition economies. Future research should focus on analyzing household spending and its interaction with other factors to improve personal financial management and promote sustainable financial behavior in a larger number of global economies.

The Impact of Personal Financial Management and Emotional Intelligence on Financial Well-being with The Mediation of Risk Management Attitude

This study investigates the intricate relationships among personal financial management, emotional intelligence, risk management attitude, and financial well-being. The study employs a random sampling technique with a sample size of 41 individuals from Bank Mandiri KCP Solo Slamet Riyadi. Path analysis, using the SmartPLS software, is utilized to explore direct and indirect effects. The results reveal a significant positive impact of personal financial management on risk management attitude and financial well-being. However, emotional intelligence is not found to be a significant predictor of risk management attitude or financial well-being. The study concludes that effective personal financial management practices play a crucial role in enhancing financial well-being, both directly and indirectly through influencing risk management attitudes. These findings provide insights for interventions and educational programs aimed at improving individuals' financial resilience and satisfaction by emphasizing responsible financial habits and decision-making.

The Influence of the Mobile Legends E-Sport Phenomenon on Student Financial Behavior

This research aims to examine the influence of the Mobile Legends e-sport phenomenon on student financial behavior. Using a quantitative approach, this research collected data from a number of respondents who were active students and also Mobile Legends players. Data analysis was carried out using statistical methods to find out whether there was a significant relationship between the hobby of playing Mobile Legends and students' financial management. The research results show that there is a significant influence of the Mobile Legends e-sports phenomenon on student financial behavior. Students who actively play Mobile Legends tend to have poor financial behavior compared to students who don't play e-sports. This research provides new insights into the impact of online games on broader aspects of life, especially in the context of personal financial management.

PENGARUH GAYA HIDUP, KONTROL DIRI DAN STATUS SOSIAL TERHADAP PENGELOLAAN KEUANGAN PRIBADI PADA KARYAWAN UPT PUSKESMAS MOYO HULU

This research aims to determine the influence of lifestyle, self-control and social status on personal financial management among UPT Puskesmas Moyo Hulu employees. Financial management is very important for every individual to achieve a prosperous future and avoid various financial problems. This research uses quantitative methods with an associative approach. The datacollection method uses a questionnaire with a Likert scale. The population in this study was all employees of the Moyo Hulu Community Health Center with the sampling method using a saturated sampling technique and the sample used was 86 respondents. The method used is multiple linear regression analysis with data processing using the SPSS program. The research results show that the variables of lifestyle, self-control and social status partially have a positive and significant influence on the personal financial management of Moyo Hulu Community Health Center employees.

Factors Affecting the Intention to Adopt Digital Banking Applications in Personal Financial Management: The Case of University Students in Hanoi, Vietnam

Factors Affecting the Intention to Adopt Digital Banking Applications in Personal Financial Management: The Case of University Students in Hanoi, Vietnam

Influence of Financial Literacy and Frugal Lifestyle on the Concept of Childfree in Childbearing Age Couples (PUS) in West Java

Frugal Living or commonly known as a frugal lifestyle is a lifestyle that places a person's consciousness at the highest level when using the money they have while still paying attention to the value of an item. Many people interpret a frugal lifestyle as a frugal lifestyle, which is not wrong, although when it comes to the word frugal, individuals usually put aside the qualities obtained by adopting a frugal lifestyle. Childfree is a term that is often referred to as a concept when married couples decide to choose a life path of not having or raising children. Frugal Living and Childfree are lifestyles that are widely adopted by society, especially young married couples, for the reason that the decision not to have or raise children is because they do not have enough income so that if they have or raise children it will only increase their obligations which will lead to difficulties in managing them. Family finance. These couples of childbearing age (PUS) believe that frugal living is one of their actions by not having or raising children so that their finances can be managed well. Financial literacy is the ability to understand and use a variety of financial skills effectively, including personal financial management, budgeting, and investing. When you are financially literate, you have a basic relationship with money, and it is a lifelong learning journey. The earlier you start, the better off you will be, because education is the key to success when it comes to money. This research seeks to find a relationship between the literacy level of every young couple in Indonesia and the decision to adopt a frugal and childfree lifestyle, especially in West Java Province.

Manajemen Keuangan Pribadi pada Siswa Mattayom di Sekolah Sangkom Islam Wittaya School

This research aims to analyze the practices of personal financial management among Mattayom students at Sangkom Islam Wittaya School. The research employed survey and interview methods with Mattayom class students, along with qualitative analysis. Findings reveal that a significant number of Mattayom students have limited understanding of personal financial management. Despite receiving regular allowances, a lack of awareness regarding the importance of budgeting and saving makes them vulnerable to financial instability. Educational factors, spending patterns, and social influences also contribute to students' financial management practices. Therefore, this research recommends the development of an integrated financial education program within the school curriculum. It is expected to assist Mattayom students in enhancing their personal financial management skills and preparing them to face future financial challenges.

Analysis of Urban Millennial's Financial Behavior: An Ethnography Study of Javanese and Minangnese on Managing Their Salary in Pursuing Wealth

Personal financial management among urban millennials is influenced by several factors, such as cultural, financial literacy, and the courage to take risks. In this study, the author wants to recognize the pattern of salary management to achieve the welfare of urban millennials, mostly urban workers who come from various regions in Indonesia. The research focused on spending habits to save, understanding the types of investments, and their behavior and courage to invest, which is correlated to their ethnic cultural habits. This study employed a qualitative ethnographic technique by conducting direct interviews with 6 (six) respondents of the millennial generation aged 25-40 years from the Javanese and Minangkabau tribes. They are professional workers lived in the DKI Jakarta area and have a fixed income that comes from salary. Based on the results of the study, it reveals that the majority of respondents already have sufficient financial literacy and financial behavior by setting aside a portion of their income every month on a regular basis to be used as savings and invested. It can also be seen that their ethnic character influences the types of investments they choose.

Pengaruh Gaya Hidup Hedonisme, Prilaku Konsumtif dan Pentingnya Literasi Keuangan terhadap Pengelolaan Keuangan Pribadi Mahasiswa Asrama Asmadewa Yogyakarta

The purpose of this study was to examine and analyze the influence of a hedonistic lifestyle, consumptive behavior and the importance of literacy on student personal financial management. The population used in this study were Asmadewa Jogja hostel students, totaling 100 people and 53 sample respondents who were determined using Non-Probability Sampling. Based on the test results and analysis in this study, it can be concluded that the hedonistic lifestyle and consumptive behavior have a positive effect on student personal financial management. Meanwhile, Financial Literacy has no effect on Student Personal Financial Management.

Perilaku Mental Accounting dalam Mengelola Daily Expenses dari Sisi Gaya Hidup Sehari-Hari Mahasiswa Indekos

Indekos students are an important segment of the academic community who need to support themselves financially. They usually live away from their parents' home and have to organise their own daily lives, including personal financial management. They often face various challenges in managing their finances to meet various needs such as boarding house rent, tuition fees, book fees, transportation costs, as well as non-academic expenses such as food and recreation costs. In this context, mental accounting behaviour is an interesting aspect to study because it can play an important role in the way boarding students manage their daily expenses. This study aims to find out how mental accounting behaviour plays a role in managing daily expenses and what are the factors that influence mental accounting in boarding students. Qualitative research with a phenomenological approach was chosen in this study to explore the phenomenon as a whole. After the research was conducted, it was found that mental accounting has a role in helping students manage their daily expenses. This can be seen from their behaviour of allocating money according to certain account categories such as boarding house rent, daily meals, skincare, transportation, academics and others.

Empowering Indigenous Wealth: Analyzing Financial Literacy, Risk Preferences and Stock Market Engagement within Scheduled Tribes in India

The purpose of this study is to address the enduring multi-dimensional poverty faced by nearly 65 million Scheduled Tribes (STs) in India, with one prominent cause being their limited investments in productive financial assets. Financial literacy has been identified as a crucial factor in enhancing personal financial management skills. The focus is specifically on investigating the relationship between financial literacy, sociodemographic factors and stock market participation among STs in Himachal Pradesh, India. Using a structured questionnaire, data was collected from 300 ST households. The study employed multinomial logistic regression to analyze the impact of financial literacy and sociodemographic variables on stock market participation. The findings indicate that a significant majority of STs (over 80%) lack financial awareness and do not participate in the stock market. Notably, financial illiteracy, risk tolerance, age, education and income were identified as significant factors influencing SMP. The insights derived from this research offer valuable guidance for policymakers, financial institutions and educators, urging the development of targeted interventions. These interventions should empower tribal individuals to make informed financial decisions and encourage their engagement in stock market activities.

The Concept of "Mental Accounting" as the Spirit of Personal Financial Management for Millennial Women

The research objective seeks to examine the ethno-economic dimensions that encourage Millennial Women to form behavioral decisions in managing personal finances. The novelty in this research is describing and analyzing the concept of "Mental Accounting" in managing personal finances, thus creating financial independence for women in Indonesia and becoming a new color in accounting research. The ethno-economic method was chosen in the research with the aim of explaining the reality of the behavior of the millennial generation in managing personal finances. The results of the study found the meaning of the concept of "mental accounting" applied by Millennial Women in managing personal finances in accordance with the Ethno-Economic dimension, namely past financial expenditure, budgeting planning for future expenditure and financial behavioral decisions. The theoretical contribution to this research is to strengthen the concept of "Mental Accounting" and human capital theory. The practical contribution of this research can be used as a basis for forming a personal financial management model for millennial women in Indonesia.

Determinants of Personal Financial Management Behavior: Moderating Role of Financial Literacy

This study aims to investigate the effect of subjective norms and propensity to plan on personal financial management behavior, with financial literacy as a moderation. This study is a quantitative approach and data collection were done using questionnaires. The population of this study were students of Economics Education (Accounting) Department on one of University in Indonesia with a total of 235 students. In this paper, we used partial least squares to measure potential constituents as a composite index-path modeling. We used WarpPLS software version 7.0 to explore the relationships contained in the model. The structural equation model results show that subjective norms and the propensity to plan have a positive effect on personal financial management behavior. Additionally, financial literacy was able to moderate the influence of subjective norms on personal financial management behavior. However, moderating effects do not happen on the propensity to plan. This research implies that personal financial management behavior can depend on psychological aspects.
 Keywords: subjective norms, propensity to plan, personal financial management behavior, financial literacy