Affiliation:
1. Dr., Associate Professor, Faculty of Economics and Business, Universitas Muhammadiyah Sumatera Utara [Muhammadiyah University of North Sumatra]
2. Associate Professor, Faculty of Economics and Business, Universitas Muhammadiyah Sumatera Utara [Muhammadiyah University of North Sumatra]
3. Senior Lecturer, Faculty of Economics and Business, Universitas Muhammadiyah Sumatera Utara [Muhammadiyah University of North Sumatra]
Abstract
Financial Management Behavior refers to the systematic activities involved in predicting, gathering, allocating, investing, and strategizing the cash flow required for a company’s or individual’s efficient functioning. This study aims to examine the role of locus of control in moderating the relationship between financial socialization, financial knowledge, financial experience, and financial management behavior among Paylater users in Medan, North Sumatra, Indonesia. The population of this research is the people of Medan, North Sumatra, Indonesia, who use Paylater. The sampling methodologies utilized were purposive sampling and snowball sampling. A total of 221 individuals participated in data collection for this study. The questionnaires were disseminated using social media chat functions or messaging applications (e.g., WhatsApp, Line, Telegram) in which the Google Forms link is shared. The study employs the data analysis technique of SEM-PLS with the assistance of PLS 4.00 software. The research results show that financial socialization, knowledge, and experience influence financial management behavior (p < 0.05). Furthermore, financial socialization, financial knowledge, and financial experience influence financial management behavior, moderated by locus of control (p < 0.05). The research implications are expected to improve the Financial Management behavior of the Paylater users by providing literacy about managing their finances.
AcknowledgmentThis study was funded by the Revenue and Expenditure Budget of the Universitas Muhammadiyah Sumatera Utara following the assignment agreement letter in the context of implementing the Basic Research Program of the Revenue and Expenditure Budget of the Universitas Muhammadiyah Sumatera Utara for the 2023 Fiscal Year, Number: 73/II.3- AU /UMSU-LP2M/C/2023.
Publisher
LLC CPC Business Perspectives
Subject
Economics, Econometrics and Finance (miscellaneous),Economics and Econometrics,Finance
Reference52 articles.
1. The theory of planned behavior
2. Ajzen, I. (2005). Attitudes, Personality, and Behavior (2nd ed.). Open University Press.
3. Determinants of the Financial Literacy among College Students in Malaysia
4. Amanah, E., Iradianty, A., & Rahardian, D. (2016). The Influence of Financial Knowledge, Financial Attitude and External Locus of Control on Personal Financial Management Behavior Case Study of Bachelor Degree Student in Telkom University. E-Proceeding of Management, 3(2), 1228-1235. - https://openlibrarypublications.telkomuniversity.ac.id/index.php/management/article/view/1448/1380
5. The Influence of Financial Attitude, Financial Socialization, and Financial Experience to Financial Management Behavior with Financial Literacy as the Mediation Variable