Why does the level of financial satisfaction high during the covid-19 pandemic?

Abstract

This study aims to analyze and investigate the impact of income, financial knowledge, financial stress, COVID-19 omicron awareness, and behavior on financial satisfaction. This study uses explanatory research with a quantitative approach. The population in this study was all students with a study status still enrolled in the master of management program at Brawijaya University from 2018–2022, totaling around 353 students. The sampling technique used in the study was purposive sampling. The sample in the study was 79 students. Surveys and documentation were used to collect data, and Likert scales were used to test instruments. The structural equation model of partial least squares (SEM-PLS) modeling was used to analyze the data. The results of this study indicate that income and financial knowledge can directly increase financial satisfaction. However, financial stress and COVID-19 omicron awareness have no effect on financial satisfaction. On the other hand, financial behavior can increase financial satisfaction. Financial behavior can fully mediate the influence relationship between financial stress and COVID-19 omicron awareness on financial satisfaction. Financial behavior is also discovered to play a role as a partial mediator in the relationship between the effect of income and financial knowledge on financial satisfaction at the individual level. The findings of this study suggest that students should improve their habits in carrying out the proper financial management, such as planning, increasing assets through saving and investing activities, and minimizing living costs through controlling spending activities, in order to meet all needs and avoid financial problems in the future, which will have an impact on achieving high financial satisfaction.