Investing in Your Future: Developing Financial Competence for Success
Keywords:
Financial Education, Access To Financial Resources, Financial Behavior, Financial Competence
Abstract
This study conducted at Bank Indonesia in Yogyakarta investigates the intricate relationship between financial education, access to financial resources, financial behavior, and financial competence among the bank's customers. Utilizing a quantitative research design and employing SmartPLS for data analysis, the study examines the direct and indirect effects of these variables on financial competence. Findings reveal significant direct effects of financial education and access to financial resources on financial competence, with financial behavior mediating the relationship between financial education and financial competence. However, access to financial resources does not directly influence financial behavior and competence. These results underscore the importance of comprehensive financial education programs in fostering positive financial behaviors and enhancing financial competence among individuals, thereby contributing to greater financial well-being and stability in the Yogyakarta region.
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[3] A. Çoşkun and N. Dalziel, “Mediation effect of financial attitude on financial knowledge and financial behavior,” Int. J. Res. Bus. Soc. Sci. (2147- 4478), vol. 9, no. 2, pp. 01–08, 2020, doi: 10.20525/ijrbs.v9i2.647.
[4] M. A. M. Abu Daqar, S. Arqawi, and S. A. Karsh, “Fintech in the eyes of Millennials and Generation Z (the financial behavior and Fintech perception),” Banks Bank Syst., vol. 15, no. 3, pp. 20–28, 2020, doi: 10.21511/bbs.15(3).2020.03.
[5] A. Zhavoronok, O. Popelo, R. Shchur, N. Ostrovska, and N. Kordzaia, “The Role of Digital Technologies in the Transformation of Regional Models of Households’ Financial Behavior in the Conditions of the National Innovative Economy Development,” Ing. des Syst. d’Information, vol. 27, no. 4, pp. 613–620, 2022, doi: 10.18280/isi.270411.
[6] M. Dubyna, O. Popelo, N. Kholiavko, A. Zhavoronok, M. Fedyshyn, and I. Yakushko, “Mapping the Literature on Financial Behavior: a Bibliometric Analysis Using the VOSviewer Program,” WSEAS Trans. Bus. Econ., vol. 19, pp. 231–246, 2022, doi: 10.37394/23207.2022.19.22.
[7] K. Rajamani, N. A. Jan, A. K. Subramani, and A. N. Raj, “Access to Finance: Challenges Faced by Micro, Small, and Medium Enterprises in India,” Eng. Econ., vol. 33, no. 1, pp. 73–85, 2022, doi: 10.5755/j01.ee.33.1.27998.
[8] W. Widjanarko, R. Pramukty, and H. Yulianah, “Strategic Financial Management in Micro , Small and Medium Enterprises ( Msmes ),” J. Ekon., vol. 11, no. 1, pp. 255–260, 2022, [Online]. Available: ejournal.seaninstitute.or.id
[9] J. Kuada, “Financial inclusion and small enterprise growth in Africa: emerging perspectives and research agenda,” African J. Econ. Manag. Stud., 2021, doi: 10.1108/AJEMS-05-2021-0230.
[10] A. Aziz and U. Naima, “Rethinking digital financial inclusion: Evidence from Bangladesh,” Technol. Soc., vol. 64, pp. 0–24, 2021, doi: 10.1016/j.techsoc.2020.101509.
[11] J. Bisbey, S. H. Hosseini Nourzad, C. Y. Chu, and M. Ouhadi, “Enhancing the efficiency of infrastructure projects to improve access to finance,” J. Infrastructure, Policy Dev., vol. 4, no. 1, pp. 27–49, 2020, doi: 10.24294/jipd.v4i1.1175.
[12] H. Bollaert, F. Lopez-de-Silanes, and A. Schwienbacher, “Fintech and access to finance,” J. Corp. Financ., vol. 68, no. December 2020, pp. 1–14, 2021, doi: 10.1016/j.jcorpfin.2021.101941.
[13] D. Maman and Z. Rosenhek, “Facing future uncertainties and risks through personal finance: conventions in financial education,” J. Cult. Econ., vol. 13, no. 3, pp. 303–317, 2020, doi: 10.1080/17530350.2019.1574865.
[14] J. Pettersson and Å. Wettergren, “Governing by emotions in financial education,” Consum. Mark. Cult., vol. 24, no. 6, pp. 526–544, 2021, doi: 10.1080/10253866.2020.1847720.
[15] S. Rodriguez-Raga and N. Martinez-Camelo, “Game, guide or website for financial education improvement: Evidence from an experiment in Colombian schools,” J. Behav. Exp. Financ., vol. 33, p. 100606, 2022, doi: 10.1016/j.jbef.2021.100606.
[16] H. Sun, D. C. Y. Yuen, J. Zhang, and X. Zhang, “Is knowledge powerful? Evidence from financial education and earnings quality,” Res. Int. Bus. Financ., vol. 52, p. 101179, 2020, doi: 10.1016/j.ribaf.2019.101179.
[17] D. Paper, “Financial education in schools : A meta-analysis of experimental studies Financial Education in Schools : A Meta-Analysis of Experimental Studies Tim Kaiser ( University of Koblenz-Landau & DIW Berlin ) Lukas Menkho ( DIW Berlin ),” no. 187, 2019.
[18] A. Ramadan, D. Alkhodary, M. Alnawaiseh, K. Jebreen, A. Morshed, and A. B. Ahmad, “Managerial Competence and Inventory Management in SME Financial Performance: A Hungarian Perspective,” J. Stat. Appl. Probab., vol. 13, no. 3, pp. 859–870, 2024, doi: 10.18576/jsap/130301.
[19] N. Safelia, A. B. Brilliant, Afrizal, S. Yetti, and F. Olimsar, “Investigating Apparatus Competence and Organizational Commitment for the Village Financial System,” Int. J. Financ. Bank. Stud., vol. 11, no. 4, pp. 37–46, 2022, doi: 10.20525/ijfbs.v11i4.2237.
[20] Wahyono and B. Hutahayan, “The relationships between market orientation, learning orientation, financial literacy, on the knowledge competence, innovation, and performance of small and medium textile industries in Java and Bali,” Asia Pacific Manag. Rev., vol. 26, no. 1, pp. 39–46, 2021, doi: 10.1016/j.apmrv.2020.07.001.
[21] T. Suwarsa and R. Anita, “Urnal kuntansi,” Akuntansi, vol. 27, no. 1, 2020.
[22] R. Mardikaningsih, E. I. Azizah, N. N. Putri, M. N. Alfan, and M. M. D. H. Rudiansyah, “Business Survival: Competence of Micro, Small and Medium Enterprises,” J. Soc. Sci. Stud., vol. 2, no. 1, pp. 1–4, 2022, doi: 10.56348/jos3.v2i1.21.
[23] S. Camisón-Haba, J. A. C. Almendros, and M. I. B. Guerra, “Financial Literacy and Level of Financial Competence in Pre-University Students: a Comparison by Academic, Personal and Family Profile,” Eur. J. Econ. Bus. Stud., vol. 4, no. 2, p. 177, 2020, doi: 10.26417/ejes.v4i2.p177-192.
[24] F. Polzin and M. Sanders, “How to finance the transition to low-carbon energy in Europe?,” Energy Policy, vol. 147, no. December 2019, p. 111863, 2020, doi: 10.1016/j.enpol.2020.111863.
[25] S. Joghee, H. M. Alzoubi, and A. R. Dubey, “Decisions effectiveness of FDI investment biases at real estate industry: Empirical evidence from Dubai smart city projects,” Int. J. Sci. Technol. Res., vol. 9, no. 3, pp. 3499–3503, 2020.
[26] C. Hepburn, Y. Qi, N. Stern, B. Ward, C. Xie, and D. Zenghelis, “Towards carbon neutrality and China’s 14th Five-Year Plan: Clean energy transition, sustainable urban development, and investment priorities,” Environ. Sci. Ecotechnology, vol. 8, 2021, doi: 10.1016/j.ese.2021.100130.
[27] A. Nuzulia, “Financial Education Affects Financial Knowledge And Downstream Behaviors,” Angew. Chemie Int. Ed. 6(11), 951–952., pp. 5–24, 2020.
[28] V. Litvinenko, I. Bowbriсk, I. Naumov, and Z. Zaitseva, “Global guidelines and requirements for professional competencies of natural resource extraction engineers: Implications for ESG principles and sustainable development goals,” J. Clean. Prod., vol. 338, 2022, doi: 10.1016/j.jclepro.2022.130530.
[29] A. Bhattacharya, V. Songwe, and N. Stern, “Finance for climate action: Scaling up investment for climate and development,” no. November, 2022.
Published
2024-05-27
Section
Articles
Copyright (c) 2024 Evieana R Saputri, Sani Haryati, Akmal Nurisnanto Dewatmoko
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