Financial Fitness: A Guide to Boosting Your Money Management Skills
Keywords:
Financial Literacy, Budgeting Practices, Financial Behavior, Money Management Skills
Abstract
This study investigates the relationships between financial literacy, budgeting practices, financial behavior, and money management skills among customers of Bank Mandiri Pontianak Diponegoro. Using a quantitative research design with a sample of 90 customers selected via random sampling, data was collected using structured questionnaires. The analysis employed Smart PLS (Partial Least Squares Structural Equation Modeling) to examine direct and indirect effects. The findings reveal significant direct effects, where higher levels of financial literacy and effective budgeting practices are associated with improved financial behavior and enhanced money management skills. Indirect effects further underscore the role of financial behavior as a mediator between financial literacy/budgeting practices and money management skills. These results highlight the importance of promoting financial education and supporting disciplined budgeting practices to foster better financial behaviors and enhance overall financial well-being among bank customers.
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[2] P. Kumar, R. Pillai, N. Kumar, and M. I. Tabash, “The interplay of skills, digital financial literacy, capability, and autonomy in financial decision making and well-being,” Borsa Istanbul Rev., vol. 23, no. 1, pp. 169–183, 2023, doi: 10.1016/j.bir.2022.09.012.
[3] C. Oppong, A. Salifu Atchulo, E. K. Akwaa-Sekyi, D. D. Grant, and S. A. Kpegba, “Financial literacy, investment and personal financial management nexus: Empirical evidence on private sector employees,” Cogent Bus. Manag., vol. 10, no. 2, 2023, doi: 10.1080/23311975.2023.2229106.
[4] S. Gervais and G. Strobl, “Money Management and Real Investment,” SSRN Electron. J., vol. 43, no. 919, 2023, doi: 10.2139/ssrn.4325133.
[5] S. H. Ardinengsih, D. Mulyadi, and S. P. H. Sandi, “The Effect of Pocket Money, Peers and Self-Control on Financial Management on Treasure Fans In Karawang,” West Sci. Bus. Manag., vol. 2, no. 01, pp. 82–95, 2024, doi: 10.58812/wsbm.v2i01.650.
[6] N. Iylia, S. Abdul, M. Rizal, A. Razak, and A. A. Said, “From Homemaking to Money Making : A Mixed-Methods Exploration of Financial Literacy Empowerment in Women ’ s Home -Based Entrepreneurial Ventures,” J. Adv. Res. Bus. Manag. Stud., vol. 1, no. 1, pp. 43–54, 2024.
[7] T. Koskelainen, P. Kalmi, E. Scornavacca, and T. Vartiainen, “Financial literacy in the digital age—A research agenda,” J. Consum. Aff., vol. 57, no. 1, pp. 507–528, 2023, doi: 10.1111/joca.12510.
[8] Z. Callis, P. Gerrans, D. L. Walker, and G. E. Gignac, “The association between intelligence and financial literacy: A conceptual and meta-analytic review,” Intelligence, vol. 100, no. August, p. 101781, 2023, doi: 10.1016/j.intell.2023.101781.
[9] T. A. N. Nguyen, “the Power of Financial Behavior in Emergency Funds: Empirical Evidence From a Developing Country,” J. East. Eur. Cent. Asian Res., vol. 10, no. 3, pp. 455–467, 2023, doi: 10.15549/jeecar.v10i3.1223.
[10] I. N. Aeni, A. Fithria, and A. K. Widiatami, “Logit Modelling of Financial Behavior Among Young Adults: Evidence and Implications How to Cite History Article,” Din. Pendidik., vol. 18, no. 2, pp. 259–275, 2023, doi: 10.15294/dp.v18i2.48744.
[11] F. Fitriaty, “Exploring the Factors Shaping Investment Decisions,” Dinasti Int. J. Econ. Financ. Account., vol. 4, no. 3, pp. 465–474, 2023, doi: 10.38035/dijefa.v4i3.1958.
[12] I. M. Sara, I. B. Udayana Putra, K. A. Kurniawan Saputra, and I. W. K. Jaya Utama, “Financial literacy, morality, and organizational culture in preventing financial mismanagement: A study on village governments in Indonesia,” Cogent Bus. Manag., vol. 10, no. 1, 2023, doi: 10.1080/23311975.2023.2166038.
[13] L. Bartocci, G. Grossi, and C. Ebdon, “The journey of participatory budgeting : a systematic literature review and future research directions,” Int. Rev. Adm. Sci., 2023, doi: 10.1177/00208523221078938.
[14] F. D. J. Van Schaik, “Public Money & Management Reconciliation of budgeting and accounting,” Public Money Manag. ISSN, 2023, doi: 10.1080/09540962.2021.2000693.
[15] T. Polzer and J. Seiwald, “Gender budgeting in public fi nancial management : a literature review and research agenda,” Int. Rev. Adm. Sci., 2023, doi: 10.1177/00208523211031796.
[16] R. Fairstein, G. Benad, and K. Gal, “Participatory Budgeting Designs for the Real World,” Thirty-Seventh AAAI Conf. Artif. Intell., 2021.
[17] V. Chentsov, “Budget planning with the development of the budget process in Ukraine,” Bus. Perspect., 2024, doi: 10.21511/ppm.18(2).2020.21.
[18] M. Asta Patma Nugraha, V. Violin, S. P. Anantadjaya, A. Lahiya, P. Pelayaran Sumatera Barat, and S. Wira Bhakti Makassar, “Improving Financial Literacy Through Teaching Materials on Managing Finance for Millenials, Markus Aska Patma Nugraha Improving Financial Literacy Through Teaching Materials On Managing Finance For Millennials,” J. Ekon., vol. 12, no. 01, p. 2023, 2023, [Online]. Available: http://ejournal.seaninstitute.or.id/index.php/Ekonomi
[19] A. Arman, M. Masrullah, A. Agustan, F. Firmansyah, and R. Aditya, “Financial Literacy and Assistance in Compiling Independent Financial Reports Using Expense IQ Money Manager,” Tech. Sustain., vol. 4, pp. 7–12, 2023, doi: 10.47577/sustainability.v4i.9476.
[20] A. Lusardi and F.-A. Messy, “The importance of financial literacy and its impact on financial wellbeing,” J. Financ. Lit. Wellbeing, vol. 1, no. 1, pp. 1–11, 2023, doi: 10.1017/flw.2023.8.
[21] J. M. Kinyanzii, “The Influence of Financial Management Practices on Financial Performance,” Asian J. Account. Res., vol. 7, no. 2, pp. 260–267, 2020.
[22] A. Lusardi and O. S. Mitchell, “The Importance of Financial Literacy: Opening a New Field,” J. Econ. Perspect., vol. 37, no. 4, pp. 137–154, 2023, doi: 10.1257/jep.37.4.137.
[23] E. Sulasmi, I. Prasetia, and A. A. Rahman, “Government Policy Regarding Education Budget on The Posture of The State Budget (APBN),” J. Lesson Learn. Stud., vol. 6, no. 1, pp. 142–151, 2023, doi: 10.23887/jlls.v6i1.60171.
Published
2024-07-03
Section
Articles
Copyright (c) 2024 Hendy Budianto, Prasetya Willim, Alvin Lesmana
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
