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Scientific Journal, Human Resource Management DOI: http://dx.doi.org/ 10.32493/JJDP.v8i1.42859

Factors Affecting Financial Management Behavior of Millennial

Generation: The Role of Financial Attitude, Financial Literacy, Locus of
Control, and Financial Knowledge

Mudrikah Zaen1, Maulida Nurul Innayah2*, Wida Purwidianti3, Yudhistira Pradhipta Aryoko4
Faculty of Economics and Busieness, Universitas Muhammadiyah Purwokerto
[email protected]*

Received 10 August 2024 | Revised 12 August 2024 | Accepted 20 September 2024

* Correspondence Writer

Abstract
This study aims to determine the effect of financial attitude, financial literacy, locus of control, and
financial knowledge on financial management behavior. The population in this study is the millennial
generation in Central Java. The type of research used in this study is descriptive-quantitative with a
data processing technique using SEM (Structural Equation Modeling) based on partial least squares
(PLS), which includes an outer model and an inner model. The sampling technique used the Slovin
formula, which resulted in 135 respondents. The results showed that financial attitude, financial
literacy, and locus of control have a positive and significant influence on financial management
behavior. However, financial knowledge does not influence financial management behavior.

Keywords: Financial Management Behavior; Financial Attitude; Financial Literacy; locus of

Control; and Financial Knowledge.

INTRODUCTION
People's lifestyles are increasing in the digital era. This increase in lifestyle has an impact on a
person's attitude toward meeting their needs. Most people tend to fulfill their needs by following existing
trends so that the needs that were originally few become many (N. R. Sari & Listiadi, 2021). Currently,
many e-commerce sites provide convenience in purchasing and payment (Haqiqi & Pertiwi, 2022). They
have a reputation for little boundaries; millennials in particular are particularly susceptible to impulsive
spending that is out of proportion to their means. One thing that needs to be considered is how one
handles their money.
Financial management behavior is the capacity to organize, monitor, control, search, and
preserve one's financial resources (Humaidi et al., 2020). Each person has a unique way of managing
their finances, and those who are aware of their financial situation will handle their money wisely. Those
who were born in the advanced technological era between 1980 and 2001 are known as the millennial
generation (Budiati et al., 2018). According to the Sensus BPS (2024), the millennial generation is a
large composition, totaling 25.87%. The large number makes this generation have an important role in
change, especially in the economic field. The economy can be a measure of a country’s progress
(Hanifah & Nurul, 2024). This generation has diverse characters, likes to share their daily experiences
on social media, likes to hang out, prefers to spend money looking for experiences rather than saving,
prefers to pay by online transfer, is easily bored with the items purchased, likes to hang out, prefers to
eat at cafes or restaurants, and travels, so this generation is very attached to consumptive behavior (Ida
et al., 2020). The millennial generation's propensity for consumption might get them into debt by making
their out-of-control spending out of proportion to their income. The public's hedonistic culture is
becoming more and more common, and this is negatively correlated with the community's well-being,
which remains low (Asaff et al., 2019).
The results of a survey conducted by the IDN Research Institute, (2022) show that there is a
high percentage of debt in the millennial generation's monthly expenditure of 28.57%, and non-essential
expenses, including entertainment and snacks, amount to 31% of the the total monthly expenditure.
Millennials have a high level of debt, influenced by consumptive lifestyles. They unknowingly behave
consumptive due to their propensity of not being able to set boundaries and being unstable due to their

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fear of missing out on trends, also known as FOMO (Fear of Missing Out) (Haq et al., 2023). It's also
well known that this generation lacks financial literacy and is too indolent to educate themselves on
investment options. According to the Ojk (2022) report, Indonesia's national literacy index was only
49.69%. These findings are consistent with the findings of the National Literacy and Financial Inclusion
Survey conducted in 2022. Given that their upbringing was characterized by an ostentatious lifestyle
and easy access to borrowing, millennials must be financially literate (Sandi et al., 2020).
Understanding the importance of financial management is needed so that a person can behave
wisely in managing finances, thus avoiding financial difficulties. Knowing how individuals control their
finances is one way to overcome financial problems (Salsabilla et al., 2022). Several factors influence
financial management behavior, the first of which is financial attitude, financial literacy, locus of
control, and financial knowledge. Financial attitudes are defined as a state of mind, belief or view that
describes a person's personality based on a psychological assessment of their financial resources which
directly or indirectly becomes a supporting factor for their financial decision-making (Triani &
Wahdiniwaty, 2020). Those who have a good attitude toward finance will handle their finances with
more discipline. They tend to be able to control spending and make budget plans. Research from Asaff
et al. (2019), Pradiningtyas & Lukiastuti (2019), Gadi (2019), Budiono (2020), and Baptista (2021)
assert that financial attitude and behavior have a substantial beneficial effect on financial management
behavior. Meanwhile, in the research of Cahyaningrum & Fikri (2021), Tampubolon & Rahmadani
(2022) assert that how one manages their finances is unaffected by their financial attitude .
Financial literacy is the second element influencing financial management behavior. According
to Setyawan & Wulandari (2020), financial literacy is the endeavor of an individual to increase their
understanding of various aspects of finance, such as general financial knowledge, financial management
knowledge, knowledge of investments and savings, and knowledge of the advantages and disadvantages
of financial products. Gunawan & Chairani (2019) that there is a substantial correlation between
financial management and financial literacy, with better financial management behavior being
demonstrated by those with greater financial literacy levels. Research from Gadi (2019), Ida et al.
(2020), Humaidi et al. (2020), Baptista (2021), and Anggraini et al. (2022) found that financial literacy
has a significant positive effect on financial management behavior. On the other hand, research by
Gunawan et al., (2020) and Wardani & Fitrayati (2022) found that financial literacy does not affect
financial management behavior.
The locus of control is the third component influencing financial management behavior. As
stated by A. L. A. Sari & Widoatmodjo (2023), locus of control is the degree to which an individual
feels confident in their capacity to handle their finances. An internal and external framework that gauges
a person's level of belief in the circumstances of his life is referred to as the locus of control (Muhidia,
2019). When someone has an external locus of control, they will believe that their actions are the result
of outside factors like fate and luck, whereas those who have an internal locus of control feel that
everything that happens to them is determined by their own choices (Harianto & Isbanah, 2021). In the
research of Herleni & Tasman (2019), Muhidia (2019), Budiono (2020), Anggraini et al. (2022), Aini
et al. (2021), Baptista (2021), and ’Ulumudiniati & Asandimitra (2022), it is stated that locus of control
has a significant influence on financial management behavior. On the other hand, the research of Nisa
& Haryono (2022) states that locus of control does not affect financial management behavior.
Financial knowledge is the fourth factor that affects how people handle their finances.
According to Sukma et al. (2022), financial knowledge is the general notions one is aware of and can
manage in the financial world. Good financial management is exhibited by those who possess strong
financial knowledge (Tampubolon & Rahmadani, 2022). Someone who has high knowledge can make
more informed decisions (Onyango, 2021). Research from Asaff et al. (2019), Herleni and Tasman
(2019), and Tampubolon and Rahmadani (2022) claims that financial management behavior is positively
and significantly impacted by financial knowledge. Financial management behavior is unaffected by
financial knowledge, according to research by Khairani & Alfarisi (2019), Muhidia (2019), Pramedi &
Haryono (2021).
Researchers are interested in analyzing the impact of locus of control, financial literacy, and
financial attitude variables on financial management behavior, as explained above. This research is a
development of previous research conducted by Baptista (2021) which initially only covered Semarang
regency to the Central Java province level. The difference with previous research is that researchers
added one variable, namely financial knowledge based on research Herleni & Tasman (2019).

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LITERATURE REVIEW
Theory of Planned Behavior
The theory of reasoned action, sometimes referred to as the theory of reasoned behavior, is the
foundation for the theory of planned behavior. This theory explains that behavioral attitudes and
subjective norms are the two main components that form a person's intention toward behavior (Ajzen,
1991). If the desire to behave is under individual control, it will become an actual behavior (Haq et al.,
2023). The underlying premise of this theory is that an individual's behavior is influenced not only by
himself but also by the opportunities and resources that fall within his competency. Therefore, it needs
to be combined with the concept of perceived control, which will influence intention and behavior
(Herleni & Tasman, 2019). Perceptions of behavioral control, subjective norms, and attitudes are the
three factors that influence behavioral intents or objectives (Salsabilla et al., 2022). When someone
considers whether they are doing properly or poorly, they are said to have an attitude towards behavior.
Other people's opinions that will either support or not support a behavior are known as subjective norms.
According to Budiono (2020), behavioral control is the level of ease with which an individual perceives
a particular behavior. The better the perception of one's behavioral control, the better self-control one
will have, and one is expected to have a good financial att One's self-control and attitude toward financial
management are predicted to improve with their impression of their behavioral control (Anggraini et al.,
2022). Based on elements like attitudes, subjective norms, and behavioral control perceptions, the theory
of planned behavior can explain the relationship between financial knowledge, financial attitudes,
financial literacy, and locus of control on financial management behavior.

Financial Attitude towards Financial Management Behavior

An optimistic outlook can help someone deal with their financial issues by simplifying
budgeting, decision-making, and management (Nisa & Haryono, 2022). There is a connection between
financial attitudes and financial management conduct, according to the theory of planned behavior,
which holds that behavior is carried out because an individual has intents or purposes that are impacted
by subjective standards and attitudes. People with positive financial attitudes are more adept at making
decisions about their money management behavior (Harianto & Isbanah, 2021). This is in line with the
research of Asaff et al. (2019), Pradiningtyas & Lukiastuti (2019), Gadi (2019), Budiono (2020), and
Baptista (2021). Based on the explanation above, the researchers propose the following hypothesis:
H1: Financial attitudes have a positive effect on financial management behavior.

Financial Literacy on Financial Management Behavior

An individual possessing a high degree of financial literacy is likely to be aware of the
significance of financial management and to view it favorably (Aghababaei & Khademi, 2019). The
premise that financial literacy influences financial management behavior is supported by the theory of
planned behavior, which contends that people act because they have intentions influenced by aspects of
attitudes, social norms, and perceived control. Sampoerno & Haryono (2021) believe that an individual's
financial behavior is influenced by their financial literacy and that an individual's grasp of economic
policy reaches its peak when this comprehension grows. This is consistent with studies conducted by
Baptista (2021), Anggraini, Ida et al. (2020), Djonn (2019), and Humaidi et al. (2020).
H2: Financial literacy has a positive effect on financial management behavior.

Locus of Control on Financial Management Behavior

A person with a good locus of control will use their finances wisely so that it is very likely that
someone can manage their finances well (Rizkiawati & Asandimitra, 2018). The locus of control

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influences financial management behavior, which is supported by the theory of planned behavior, which
holds that an individual behaves based on intentions that are influenced by perceptions of behavioral
control. Locus of control will assist in allocating finances according to plan to achieve the expected
financial goals (Sukma et al., 2022). According to Nisa & Haryono (2022), a person will be better at his
financial behavior because he has control over himself and his views in the future, so individuals will
prioritize their needs over their desires. This is in line with the research of Herleni & Tasman (2019),
Budiono (2020), Anggraini et al. (2022), Aini et al. (2021), Baptista (2021), and 'Ulumudiniati &
Asandimitra (2022). Based on the previous explanation, the researcher proposes the following
hypothesis:
H3: Locus of control has a positive effect on financial management behavior.

Financial Knowledge on Financial Management Behavior

An individual with extensive financial knowledge is likely to make better selections; Their
money management conduct is also likely to improve in an efficient and responsible manner (Budiono,
2020). A person will handle their money more skillfully if they possess strong financial knowledge
(Rahmawati & Haryono, 2020). The impact of locus of control on financial management behavior is
supported by the theory of planned behavior, which holds that an individual behaves based on intentions
that are influenced by perceptions of behavioral control. According to Budiono (2020), financial
knowledge enables a person to treat finances wisely according to their needs so that they are better at
managing and allocating their finances. This is in line with the research of Asaff et al. (2019), Herleni
& Tasman (2019), Tampubolon & Rahmadani (2022), and Sukma et al. (2022). Based on previous
research, researchers propose the following hypothesis:
H4: Financial knowledge has a positive effect on financial management behavior.

Based on the relationship between the variables above, the research model can be described as follows:

Financial Attitude H1

Financial Literacy H2

H3 Financial Management Behavior

Locus of Control

H4
Financial
Knowledge

RESEARCH METHODS
This study's population consists of millennials, or people born between 1980 and 2001 (Budiati
et al., 2018) and live in Central Java with a total of 9,125,046 people (Sensus BPS, 2024). The sample
calculation for this study using the Slovin formula with a 10% margin of error resulted in a minimum
limit of 100 respondents. Finally, the researcher managed to collect data from 135 respondents. This
research uses a quantitative approach with primary data type. In this study, data collection techniques
by distributing questionnaires using Google form media. Measurement of respondents' answers using a
Likert scale of 1-5. Measurement of financial attitude variables consists of 16 items with indicators:
orientation towards finance, debt philosophy, money security, and assessing personal finance derived
from Mien & Thao (2015). Furthermore, the measurement of financial literacy variables consists of 4
items with indicators of basic financial knowledge, knowledge of savings and investment, and

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knowledge of financial management derived from A. L. A. Sari & Widoatmodjo (2023). Then the
measurement for the locus of control variable consists of 7 items with indicators: ability to make
financial decisions, role in controlling finances, ability to solve problems, and level of confidence in the
future. The financial knowledge variable consists of 5 items with indicators: general knowledge of
financial calm, knowledge of saving and borrowing, knowledge of insurance, and knowledge of
investment. The financial management behavior variable consists of 5 items with indicators: financial
control, timely payment, making financial plans, and saving money derived from Perry & Morris (2005).
The data analysis method used in this study is PLS to test the outer model and inner model.

RESULT and DISCUSSION

Respondent Description
By distributing surveys to millennials in Central Java, data was collected from 135 respondents.
Based on Table 1, the highest number of respondents were female, with as many as 106 respondents
(79%) with an age range of 23–26, as many as 122 respondents (90%), most respondents live in
Kebumen, total 26 (19%), the last education was SMA, SMK, or equivalent, as many as 85 respondents
(64%), and as many as 101 (75%) respondents had an income of less than Rp. 2,000,000.
Table 1. Respondent Description
Gender Total Percentage
Male 29 21%
Female 106 79%
Age
23 – 26 122 90%
27 – 31 9 7%
32 – 36 3 2%
37 – 43 1 1%
Domicile
Banjarnegara 8 6%
Banyumas 13 10%
Cilacap 12 9%
Kebumen 26 19%
Semarang 18 13%
Tegal 8 6%
More
Education
SMA/SMK/Equivalent 85 64%
Diploma 6 4%
Strata 1 42 31%
Strata 2 2 1%
Strata 3 0 0%
Income
< Rp. 2.000.000 101 75%
Rp. 2.000.000 – Rp. 6.000.000 27 20%
Rp. 6.000.000 – Rp. 10.000.000 7 5%
> Rp. 10.000.000 0 0%

Validity and reliability test

When doing the validity test, convergent and discriminant validity need to be considered. While
loading factors and average variance extracted (AVE) can be used to explain convergent validity,
Fornell-Larcker can be used to explain discriminant validity.
Table 3. Validity and Reliability Test
Item Loading Crombach’ Composite
Factor Alpha Reliability
Financial Attitude 0,956 0,961
FA 1: It is important for me to establish a consistent saving pattern. 0,840
FA 2: I write financial goals that help me prioritize my spending.
FA 3: I realize that a written budget is essential for successful financial 0,786
management.

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FA 4: I take responsibility for my financial well-being. 0,870

FA 5: I think making notes on financial matters takes very little time.
FA 6: I consider saving money to be important. 0,846
FA 7: As long as I pay my monthly bills, I care how long I have to be
in debt.
FA 8: I save money by considering the amount of money I am saving. 0,823
FA 9: I concentrate when managing my finances. 0,794
FA 10: I need to plan for retirement to secure my old age. 0,753
FA 11: I realize it is very important to plan for the inability of wages 0,784
to meet my needs.
FA 12: I make sure my property is insured at a reasonable risk.
FA 13: I think that planning is a necessary concern. 0,813
FA 14: I realize that planning expenses are important in managing 0,877
finances.
FA 15: I think planning for the future is the best way forward. 0,871
FA 16: It is important for me to think about financial success in the 0,782
next 5–10 years.
Financial Literacy 0,883 0,0,919
FL 1: I understand the basic knowledge of finance, both financial 0,846
services and financial theory.
FL 2: I know the benefits of stock investment by investing my 0,854
income.
FL 3: I know the benefits of insurance against risks that will occur in 0,864
the future.
FL 4: I understand the meaning of savings and loans on my income. 0,877
Locus of Control 0,909 0,929
LC 1: I have solutions to some of my financial problems. 0,813
LC 2: I took action with encouragement from my surroundings.
LC 3: I can change important things in my life. 0,851
LC 4: I can realize the plans I have in mind. 0,841
LC 5: I believe what happens in the future depends on my current 0,782
actions.
LC 6: I can deal with the problems of my life. 0,871
LC 7: I can control the circumstances that happen to me. 0,813
Financial Knowledge 0,823 0,882
FK 1: I know about interest rates charged by banks and loan rates 0,731
charged by financial institutions.
FK 2: I know about the credit rating (credit risk assessment) done by
the company and why it is done
FK 3: I know how to manage my finances. 0,850
FK 4: I know how to invest my money. 0,824
FK 5: I clearly understand my bank statement. 0,818
Financial Management Behavior 0,908 0,932
FMB 1: I always manage my expenses. 0,878
FMB 2: I pay my bills on time. 0,870
FMB 3: I make a budget for my finances. 0,859
FMB 4: I provide an emergency fund for myself and my family. 0,829
FMB 5: I set aside money for savings. 0,841
According to Hair et al. (2021), the loading factor value must be greater than 0.7. Some items
need to be removed because they have a value of less than 0.7, namely FA2, FA5, FA7, FA12, FK2.
Based on Table 2, shows that all statements of each variable have a value of more than 0.7, indicating
that the requirements have been met so that further testing can be carried out. Reliability testing uses
Cronbach's alpha and composite reliability calculations. The Cronbach's alpha value is more than 0.7
which indicates that the variables in this study are said to be reliable. The AVE value of each variable
has a value of more than 0.5 which indicates that each variable in this study has good convergent validity.
The minimum acceptable AVE value is 0.50 (Hair et al., 2021).
Table 3. Discriminant Validity

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Financial AVE
Financial Financial Locus of Financial
Management
Attitude Literacy Control Knowledge
Behavior
Financial Attitude 0,821 0,674
Financial Literacy 0,588 0,860 0,740
Locus of Control 0,675 0,705 0,829 0,651
Financial Knowledge 0,773 0,642 0,691 0,807 0,651
Financial Management
Behavior
0,719 0,682 0,803 0,665 0,855
0,732

Discriminant validity tests can be measured using Fornell-Larcker and cross-loading. To satisfy
the requirements for discriminant validity, LC items must be eliminated. Table 3 shows that the
discriminant validity test is acceptable because the AVE square root value is greater than the correlation
of other constructs (Hair et al., 2021).
Table 4. Determination Coefficient Test
R Square R Square Adjusted
Financial Management Behavior 0,715 0,706

As presented in Table 4, the coefficient of determination test value is 0.706, indicating that
financial attitudes, financial literacy, locus of control, and financial knowledge influence 70.6% of
financial management behavior. Hair et al. (2021) describe the moderate category as R square values
between 0.50 and 0.75. Other factors that impact the 29.4% percentage are not addressed in this study.

Table 5. Predictive Relevance Test (Q-Square)

SSO SSE Q² (=1-SSE/SSO)
Financial Attitude 1620,000 1620,000
Financial Literacy 540,000 540,000
Locus of Control 810,000 810,000
Financial Knowledge 540,000 540,000
Financial Management Behavior 675,000 331,489 0,509

The q-square value of 0.509 for financial attitudes, financial literacy, and locus of control on
financial management behavior is displayed in Table 5. As to Ghozali and Latan (2015), a research
model that has predictive relevance is indicated by a q-square value greater than 0.
Table 6. Hypothesis Test
Original Sample (O) P Values Conclusion
FA -> FMB 0,298 0,001 Supported
FL -> FMB 0,168 0,010 Supported
LC -> FMB 0,493 0,000 Supported
FK -> FMB -0,013 0,871 Not Supported

As to Ghozali & Latan (2015), the hypothesis is deemed acceptable if the p-value is less than
0.05. The first test of the relationship between financial attitudes and financial management behavior,
as shown in Table 6, had an original sample value of 0.298 and a p-value of 0.001. A p-value of less
than 0.05 indicates that the financial attitude variable positively influences financial management
behavior.
A p-value of 0.010 and an original sample value of 0.168 were found in the second test
examining the relationship between financial literacy and financial management behavior. As a result
of its p-value of less than 0.05, the financial literacy variable positively influences financial management
behavior.

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0.493 was the original sample value and 0.000 is the p-value for the third test of the locus of
control effect on financial management behavior. Because the locus of control variable has a p-value of
less than 0.05, it has a positive effect on financial management behavior.
The original sample value of -0.013 and the p-value of 0.871 are found in the fourth test of the
relationship between financial knowledge and financial management behavior. Due to its p value of
more than 0.05, the financial knowledge variable has no impact on financial management behavior.

DISCUSSION
The Effect of Financial Attitudes on Financial Management Behavior
The test results indicate that the financial attitude variable has a positive impact on financial
behavior. Thus, there is evidence to support the hypothesis that financial attitudes influence financial
management behavior. The theory of planned behavior serves as the foundation for this study's findings
and is the source of the financial attitude variable. This theory states that an individual's attitudes—the
positive or negative assessments they must make of themselves—have an impact on their intentions
regarding their behavior. Millennials have a positive attitude toward financial management behavior,
such as being aware of the importance of budgeting, making financial priorities, paying bills, and
planning retirement funds, so that financial management behavior becomes better. According to Asaff
et al. (2019), someone who has a good financial attitude will have a positive mindset and view of their
finances in the future. They always try to manage their finances well and have the ability to control
themselves so as not to always follow their desires. This shows that financial attitudes affect financial
management behavior. This research is in line with the research of Asaff et al. (2019), Pradiningtyas &
Lukiastuti (2019), Gadi (2019), Budiono (2020), and Baptista (2021).

The Effect of Financial Literacy on Financial Management Behavior

The test results show that financial literacy has a positive impact on financial management
behavior. The idea that financial literacy influences financial management behavior is thus supported
by the available data. The theory of planned behavior, which forms the foundation of the financial
literacy variable affects financial management behavior. According to this theory, a person takes action
because his attitude determines his objectives. The respondents exhibit a favorable attitude towards their
financial management behavior, as evidenced by their high degree of financial literacy. They can make
informed financial decisions, comprehend fundamental financial concepts, invest, and comprehend the
impact of savings and loans on their income. According to a study by Baptista (2021), a person's standard
of living increases with their level of financial literacy. According to Haqiqi and Pertiwi (2022), the
higher the financial literacy of individuals in implementing financial aspects, the more likely it is to
result in wise financial behavior. These findings are in line with the research of Gadi (2019), Ida et al.
(2020), Humaidi et al. (2020), Baptista (2021), Anggraini et al. (2022), and Haqiqi & Pertiwi (2022).

Effect of Locus of Control on Financial Management Behavior

Based on test results, financial management behavior and the locus of control are positively
correlated. Thus, the hypothesis that locus of control affects the conduct of financial managers is
supported. The study's control variable is situated according to the theory of planned behavior. This
theory holds that beliefs about behavioral control have an impact on an individual's intention. When
someone views behavioral control favorably, they believe they have the power to manage and keep
control over their financial condition. Having a locus of control will increase confidence in one's chances
of succeeding in personal finance (Sukma et al., 2022). Respondents can solve financial problems, and
they believe that everything they do now will have an impact on their future. This shows that locus of
control affects how well a person behaves in financial management. This finding is in line with the
research of Herleni & Tasman (2019), Muhidia (2019), Budiono (2020), Anggraini et al. (2022), Aini
et al. (2021), and Baptista (2021), who state that locus of control has a significant effect and has a
positive influence on financial management behavior.

The Effect of Financial Knowledge on Financial Management Behavior

According to the test results, financial management behavior is unaffected by the financial
knowledge variable. As such, the theory of planned behavior does not support the hypothesis that
financial knowledge influences financial management behavior. Even a highly knowledgeable person

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about money may not always have perfect control over it. Financial knowledge does not improve one's
financial management behavior if one is irresponsible with their money (Damayanti et al., 2023). It is
not always the case that someone with low knowledge will always behave poorly when it comes to
money management. Similarly, someone with strong knowledge does not necessarily have poor
knowledge behavior (Khairani & Alfarisi, 2019). The high and low roles that information plays are not
always useful and suggest a viewpoint on how people handle their finances (Nisa & Haryono, 2022). A
deeper grasp of finance is necessary to manage finances; financial knowledge alone is insufficient to
impact financial management behavior (Pramedi & Haryono, 2021). This demonstrates that financial
management behavior is unaffected by financial knowledge.
Someone with high knowledge is not proven to have good financial management behavior, as
well as someone who has low knowledge does not always have poor knowledge behavior (Khairani &
Alfarisi, 2019). The high and low role of one's knowledge is not necessarily effective and implies a
perspective on financial management behavior (Nisa & Haryono, 2022). Having financial knowledge
alone is not enough to influence financial management behavior but a deeper understanding of finance
is needed to manage finances (Pramedi & Haryono, 2021). This shows that financial knowledge does
not influence financial management behavior. The results of this study are in line with the research of
Prihartono & Asandimitra (2018), Rizkiawati & Asandimitra (2018), Khairani & Alfarisi (2019),
Muhidia (2019), Pramedi & Haryono (2021), and Nisa & Haryono (2022).

CONCLUSION
The study's conclusion, which is based on the aforementioned data analysis, indicates that the
factors of financial attitude, financial literacy, and locus of control have a positive association and
significantly impact how the millennial generation in Central Java manages their finances. Nonetheless,
the Central Javan millennial generation's financial management practices are unaffected by the financial
knowledge variable. First, the results showed that financial attitudes, financial literacy, locus of control,
and financial knowledge influenced 70.6% of financial management behavior. Other factors affect the
29.4% rate that are not covered in this study. Second, Google Form Media is used for data gathering in
this study; however, it may not accurately reflect respondents' actual circumstances, which could lead
to bias in the results.
Based on the limitations of the research above, the study provides several theoretical and
practical suggestions: First, it has been shown that these elements contribute to the development of
responsible financial management behavior. In order to prevent financial difficulties and achieve
financial well-being, millennials need to first pay attention to their financial attitudes, practice self-
control, and raise their level of financial literacy. Second, since lifestyle has been shown to improve
financial management behavior, more research is advised to include other factors that affect financial
management behavior (Nisa & Haryono, 2022). Future researchers can also add financial technology
variables because they are proven to improve financial management behavior (Humaidi et al., 2020).
Third, this research can expand the object of research so that it can be generalized more broadly.

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