Analysis of Factors Affecting Financial Well Being Millennial Generation

in Batam

Yandi Suprapto, Meilinda Cecilia

1
Manajemen, Universitas Internasional Batam, Kota Batam
email: yandi.suprapto@uib.ac.id
2
Manajemen, Universitas Internasional Batam, Kota Batam
email: meilindacecilia8@gmail.com

Abstract
The purpose of this study is todetermine whether financial behavior, financial socialization
agents,financial attitude,financial stress, and financial literacy can influence financial well being in
millennial generation in Batam City. Financial well being is described when a person is able to
prosper in the field of financial finance. Welfare is reflected in the ability to meet and manage all
needs and desires. While millennial is the most current generation so that it can be a hope and
reflection of a country. This research method begins with the distribution of questionnaires to the
people of Batam city aged 15-19 years.
Data were collected as many as 300 respondents then processed with multiple regression research
models using SPSS.Variable financial literacy, financial attitude and financial socialization agents
provide a significant positive relationship to financial well being. Meanwhile financial stress has a
significant negative relationship with financial well being. Then for financial behavior variables
show no significant relationship to financial well being.

Kata Kunci: financial literacy,financial wellbeing, financial attitude, financial socialization

agents,financial behavior and financial stress.
37.1% and financial inclusion was 74.5%.
INTRODUCTION
The condition of millennial generation in
In this rapidly developing era, many Batam is still relatively inexperienced in
technologies and factors cause a person's managing personal finances. This is due
level of economic needs to increase. to the lack of information obtained on
Financial well being is a condition where how to manage finances well from the
a person is able to meet his needs for the family and from the school.
long term and have financial satisfaction
and prosperity. According to the Otoritas Achievement of financial literacy
Jasa Keuangan (2016), someone who has and good inclusion can bring someone to
financial literacy and high financial financial well being. A person's behavior
inclusion will bring that person to a and habits in managing income also
higher level of financial well being. influence the achievement towards
Financial literacy is how a person is able financial satisfaction. A person's habits in
to manage his finances well and is able to paying obligations, making purchases or
make financial decisions well. Whereas making large-scale expenses and the use
financial inclusion is how capable the of credit cards are also very helpful to
community is in accessing financial control and avoid excessive spending.
services such as insurance and banking. Such actions are an example of financial
According to the Otoritas Jasa Keuangan behavior. This causes a relationship
(2016) in 2016, the level of financial between financial behavior with financial
literacy in Indonesia was 29.7% and well being.
financial inclusion was 67.7% and the The condition when someone feels
level of financial literacy in Batam was burdened by obligations is also a factor

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that is able to influence one's financial namely as an independent variable and a
well being. Financial stress is a situation mediating variable so that in this study
where an individual is worried about his conducted two tests. This research was
finances such as in the form of pressure distributed to 536 students at the
that comes from debt, unable to meet University of Semarang in 2015,
obligations. The higher the financial especially to the economic faculty of
stress, the lower the financial well being. financial focus and processed through the
These two variables will always SPSS system.
contradict each other so that it causes Nandan and Saurabh (2019)
financial stress to affect financial well examined a study which examined
being. financial knowledge, financial
socialization agents and financial risk
A person's thoughts, opinions and
attitudes on financial well being. There
judgments about finances will also affect
are two independent variables namely
one's level of financial well being. For
financial knowledge and financial
example in assessing a financial product
that suits the needs of each individual is socialization along with mediating
variables namely financial risk attitude
able to influence financial well being.
and the dependent variable financial well
Choosing a financial product well can
being. This research was conducted by
help reduce the time and use of the wrong
distributing questionnaires to 350
product and result in losses. Such actions
investors and returning 317 respondents
constitute a person's attitude in handling
with 286 respondents who could be used
finances called financial attitude. This
due to lack of data. The questionnaire
causes that there is a relationship between
distributed was based on five points,
financial attitude with financial well
which scaled from strongly disagree to
being.
strongly agree, which was then processed
Financial socialization agents also using the SPSS system. This research was
have an effect on improving financial well carried out in India specifically in the city
being. Financial socialization agents called Allahabad in the central area of
consist of primary and secondary agents Uttar Pradesh, India.
where primary agents are influences from Research conducted by Younas,
the inner environment, namely from Javed, Kalumuthu, Farooq, and Rehman
parents and secondary agents are (2019) explains that there is a relationship
influences from the outside environment between self control, financial literacy,
such as from peers and social media such and financial behavior towards financial
as newspapers and the internet. The Well Being. This study involved 600
influences from the surrounding respondents by getting 416 valid
environment tend to reflect what an respondents conducted in Pakistan. This
individual will do in the future. study uses three independent variables in
RESEARCH FRAMEWORK AND the form of self control, financial literacy,
HYPOTHESIS DEVELOPMENT and financial behavior with one
independent variable, financial well
Research conducted by Setiyani and
being. This study uses SPSS to process
Solichatun (2019) with the aim of
the questionnaire respondents. The
examining the effect of financial
questionnaire they did was based on five
behavior, financial socialization agents,
points which meant consisting of strongly
financial attitude, financial stress, and
disagreeing, disagreeing, neutral, agreeing
financial literacy on financial well being.
and strongly agreeing. They collected data
This study tests the financial behavior that
from various regions such as educational
is tested as being two types of variables,
institutions, the corporate sector and
JGBMR 34
places to eat in Pakistan. They made the Financial literacy is considered to
questionnaire with Google forms and have a significant positive effect on
selected respondents' data through financial well being because of the
G.power software. existence of a financial literacy attitude
Research conducted by Arifin such as being able to manage its finances
(2018) with the aim of understanding and well and take financial decisions well
testing the financial attitude and financial being able to make one's financial well
knowledge of financial well being of being better.Financial behavior is
employees in Jakarta. The study uses two considered to have a significant positive
independent variables namely financial influence on financial well being because
knowledge and financial attitude with one one's habits in handling finances will
dependent variable, financial well being. affect one's financial well being
This study uses a questionnaire level.Financial stress is considered to
distribution to 450 respondents from have a significant negative effect because
various sectors of workers in Jakarta someone who is experiencing financial
consisting of students who are working pressure tends to be less able to run
and graduating. The questionnaire was financial well being well.Financial
designed through a Google form that was attitude is considered to have a significant
shared through social media such as positive effect because with the
Facebook, WhatsApp and email. The intellectual attitude in handling finances
majority of respondents in this study were will improve one's financial well being
people who were actively working on an because they have thoughts and targets to
age scale from 20 to 40 years with a be achieved.Financial socialization agents
percentage of 73.4% and 96.2% of are considered to have a significant
respondents were people who worked in a positive effect because humans tend to
private place. The majority of respondents frequently ask for opinions and obtain
in this study were also graduates from financial knowledge both in terms of
universities as many as 62.2% of internal (family) and external aspects
respondents were processed by SPSS (peers, internet or lectures).
software. The formulation of the research
Financial well being is explained as model and hypothesis in this study are as
a condition where someone has been able follows:
to meet financial obligations and have H1: Financial literacy has a significant
financial preparation in the future positive effect on financial well being in
according to the Financial Services millennials in Batam City
Authority (2017). According to Setiyani H2: Financial behavior has a significant
and Solichatun (2019) states financial positive effect on financial well being in
well being is a condition where a person millennials in Batam City
is in health, pleasure and is not worried H3: Financial stress has a significant
about finances or finances based on one's negative effect on financial well being on
own views. According to the Consumer millennial generation in Batam City
Financial Protectoin Bureau (2015), H4: Financial attitude has a significant
financial well being consists of 4 positive effect on financial well being in
concepts: financial control for the short millennials in Batam City
and long term, having the ability to deal H5: Financial socialization agents have a
with financial shock, being able to significant positive effect on financial
achieve financial goals and being able to well being in millennial generation in
achieve financial freedom to find a better Batam City.
life.

JGBMR 35
 will be analyzed using "SPSS or
Financial Stress Statistical Product and Service Solutions"
software version 21.
Financial
Behavior RESULTS AND DISCUSSION
Financial Of the 300 scattered respondents, 4 of
Financial Literacy them experienced outliers and a total of
Well Being
296 respondents were processed.Judging
from the number of respondents by sex,
Financial Attitude the majority of sex in this study were
women with a percentage of 65.5%. The
Financial majority of respondents in this study are
also still single with a percentage of 99%.
Socialization
The majority of ages also range in age
Agents from 20-24 with a percentage of 90.2%
and also as much as 80.7% are already
working. The majority of education is
This research is a quantitative SMA/ K as much as 78.7 and the majority
research using direct and indirect data of the population is Lubuk Baja District
collection methods. The direct method with a percentage of 40.2%.
will be carried out by distributing Based on the outlier test results on
questionnaires directly to prospective the respondent data in this study, the
respondents and indirectly utilizing the outlier test stated that there were 4 (four)
"Google Form" instrument sent via the data that experienced irregularities or
link. errors. Z-score of 4 (four) data does not
The object of research taken was meet the criteria for criteria that exceeds
millennial generation in Batam City, the number 3 and reduces the number -3.
ranging in age between 15-39 years. The In testing the validity, financial
sample technique method used in this literacy leaves 8 (eight) indicators out of
study is simple random sampling. This 10 (ten) indicators. The remaining 6 (six)
random sampling gives the entire financial behaviors indicators out of 10
population in Batam City the opportunity (ten) indicators. Financial stress variables
to participate in this research. The method do not experience a lack of indicators in
of collecting the amount of data or the testing validity which indicates that all
number of respondents in general depends financial stress indicators are said to be
on the number of questions or the number valid. Financial attitude experienced a
of indicators multiplied by 5 (five) reduction of 8 (eight) valid indicators.
according to Hair, Black, Babin, and Financial socialization agents, there are 6
Anderson (2014). Based on these (six) indicators remaining from the 7
calculations, the minimum number of (seven) initial indicators. Financial well
respondents needed is 290 respondents being, there are 9 (nine) indicators
where the number of indicators (58 remaining from 10 (ten) indicators.In
indicators) multiplied by 5 (five). To reliability testing, all variables have met
anticipate respondents who experience the requirements for further testing.
disability or invalid, a questionnaire via The results of the normality test
Google form will be distributed to 300 research produce significant values in the
respondents. Kolmogorov Smirnov table with a value
This research model uses multiple of 0.795 and Asymp values. Sig. (2-
linear regression (multiple linear tailed) of 0.553 or more than 0.05 so that
regression). Respondent data collected
JGBMR 36
it qualifies as a study with normal Financial attitude has a direct
distribution. influence that is able to influence one's
The results of multicollinearity financial well being because having a
testing produce financial attitude, target and good financial planning can
financial socialization agents, financial improve one's financial well being
stress, financial literacy, financial Financial socialization agents can
behavior variables showing a VIF value influence a person's financial well being
of five independent variables have a value by providing knowledge or knowledge
of less than 10. about finance from both external and
Heteroscedasticity test results internal factors of one's association
produce variable financial literacy shows
a glacier value of 0.317, financial CONCLUSIONS
behavior of 0.062, financial stress of The conclusion of this study is to
0.113, financial attitude of 0.906 and formulate that financial attitude, financial
financial socialization agents of 0.408. socializationagentsand financial literacy
F test results produce a significant have a significant positive relationship on
value with a value of 0,000 which financial well being. Financial literacy has
indicates that the independent variables a significant positive relationship because
such as financial literacy, financial having the ability to manage finances and
behavior, financial stress, financial make good financial decisions can affect
attitude, and financial socialization agents one's level of financial well being. With
have a significant simultaneous the financial thoughts and targets in the
relationship with dependent variables, long term which is the attitude of the
namely financial well being. financial attitude will also increase the
T test results produce financial level of one's financial well being.
literacy has a significant value of 0,000, Financial socialization agents will affect
financial behavior significant value of one's financial well being by influencing
0.203, financial stress with a beta value of opinions and knowledge about finance.
-0.168 and a significant value of 0.011, Financial behavior is considered not to
financial attitude significant value of have a significant positive effect because
0,000 and financial socialization agents there must be a forerunner who is able to
significant value of 0,000. influence financial behavior in order to be
Financial literacy has a significant able to influence one's financial well
positive relationship and influence being. Financial stress is considered to
because having the ability to manage have a significant negative effect because
finances well and being able to take someone who is experiencing financial
financial decisions well can affect one's stress tends not to be able to achieve
financial well being. financial well being well.
Financial behavior does not have a
direct influence on financial well being RECOMMENDATIONS
because there must be a forerunner that Research is still far from perfection
encourages financial behavior to be able due to the still minimal number of
to influence one's financial well being. respondents compared to the population
Financial stress has a significant in Batam and also the influence of the
negative effect on one's financial well amount of time used is less long and also
being because someone who is this study is only done alone.
experiencing financial pressure will have Some other variables that can be
difficulty experiencing and carrying out used can be in the form of debt
the financial well being situation. management, financial confidence and

JGBMR 37
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