Financial literacy, financial knowledge, and financial attitudes as antecedents of financial management behavior
DOI:
https://doi.org/10.12928/jombi.v3i1.1633Abstract
Purpose-Financial management issues challenge business actors, such as micro, small, and medium enterprises. A lack of understanding of financial concepts impacts business sustainability. This study analyzes the influence of financial literacy, financial knowledge, and financial attitudes on financial management behavior among micro, small, and medium enterprises.
Design/Methodology/Approach-This study uses a quantitative approach with a survey method using questionnaires. The sampling technique was purposive, and 150 respondents from micro, small, and medium culinary businesses in Bantul, Yogyakarta, Indonesia were obtained. The data analysis technique was multiple linear regression using SPSS version 25 statistical tools.
Findings-The results showed that financial literacy had a positive but insignificant effect on financial management behavior, so the first hypothesis was rejected. Financial knowledge and financial attitudes each positively affected financial management behavior, so the second and third hypotheses were accepted.
Research limitations/implications-This study has limitations in terms of the number of respondents and geographical coverage, which only includes micro, small, and medium-sized culinary businesses in Bantul, Indonesia, so the results cannot be generalized to all companies in other regions. Future research should expand the scope and number of respondents to produce more comprehensive findings.
Originality/value-This study focuses on micro, small, and medium enterprises in the culinary sector in Bantul, Indonesia. No similar research has been conducted previously. Previous studies have focused on micro, small, and medium enterprises in the service and fashion sectors. This study also suggests the government's role in supporting financial management behavior for business actors by conducting financial training.
References
Allgood, S., & Walstad, W. B. (2016). The effects of perceived and actual financial literacy on financial behaviors. Economic Inquiry, 54(1), 675–697. https://doi.org/10.1111/ecin.12255
Ameliawati, M., & Setiyani, R. (2018). The influence of financial attitude, financial socialization, and financial experience on financial management behavior, with financial literacy as the mediation variable. KnE Social Sciences, 811-832.
Asandimitra, N., & Kautsar, A. (2019). The influence of financial information, financial self-efficacy, and emotional intelligence on the financial management behavior of female lecturers. Humanities & Social Sciences Reviews, 7(6), 1112–1124. https://doi.org/10.18510/hssr.2019.76160
Arifin, R., Ningsih, A. A. T., & Putri, A. K. (2021). The important role of MSMEs in improving the economy. East Asia Journal of Contemporary Business, Economics and Law, 24(6), 52-59.
Ashshiddiqi, M. T., & Rahmat, T. (2022). Optimizing the financial management behavior of MSME actors through digital financial knowledge in the digital era. International Journal of Nusantara Islam, 10(1), 34–48. https://doi.org/10.15575/ijni.v10i1.21502
Bado, B., Hasan, M., Tahir, T., & Hasbiah, S. (2023). How do financial literacy, financial management learning, financial attitudes, and financial education in families affect personal financial management in Generation Z?. International Journal of Professional Business Review, 8(5), 1-29. https://doi.org/10.26668/businessreview/2023.v8i5.2001
Baihaqqy, M. R. I., Disman, N., Sari, M., & Ikhsan, S. (2020). The effect of financial literacy on the investment decision. Budapest International Research and Critics Institute-Journal (BIRCI-Journal), 3(4), 3073–3083. https://doi.org/10.33258/birci.v3i4.1333
Banthia, D., & Dey, S. K. (2022). Impact of financial knowledge, attitude, and behaviour on financial literacy: Structural equation modeling approach. Universal Journal of Accounting and Finance, 10(1), 327–337. https://doi.org/10.13189/ujaf.2022.100133
Bucher‐Koenen, T., Lusardi, A., Alessie, R., & Van Rooij, M. (2017). How financially literate are women? An overview and new insights. Journal of Consumer Affairs, 51(2), 255-283. https://doi.org/10.1111/joca.12121
Calcagno, R., & Monticone, C. (2015). Financial literacy and the demand for financial advice. Journal of Banking & Finance, 50, 363-380. https://doi.org/10.1016/j.jbankfin.2014.03.013
Chen, Y. J., Lee, V., & Tang, T. L. P. (2024). Does thinking about making money help people save money? Behavioral economics—monetary wisdom across genders: Ardent love of money aspirations and $1 million resource allocation. Asian Journal of Business Ethics, 13(1), 323-365. https://doi.org/10.1007/s13520-024-00207-7
Chong, K. F., Sabri, M. F., Magli, A. S., Abd Rahim, H., Mokhtar, N., & Othman, M. A. (2021). The effects of financial literacy, self-efficacy, and self-coping on the financial behavior of emerging adults. The Journal of Asian Finance, Economics and Business, 8(3), 905–915. https://doi.org/10.13106/jafeb.2021.vol8.no3.0905
Dahles, H. (2017). The sustainability of small business resilience: The local tourism industry of Yogyakarta, Indonesia, a decade after the crisis. Routledge.
Dwiastanti, A. (2017). Analysis of financial knowledge and attitude on locus of control and financial management behavior. MBR (Management and Business Review), 1(1), 1-8. https://doi.org/10.21067/mbr.v1i1.2043
Engels, C., Kumar, K., & Philip, D. (2021). Financial literacy and fraud detection. Routledge.
Feralda, M., Hafidzi, A. H., & Samsuryaningrum, I. P. (2023). The influence of financial attitude, self-control, and hedonism style on financial management behavior of student Shopee Paylater users in Jember District. Budapest International Research and Critics Institute-Journal, 6(2), 1169–1182. https://doi.org/10.33258/birci.v6i2.7606
Filippova, T. V., Kashapova, E. R., & Nikitina, S. S. (2016). Financial literacy is key to an individual's social and economic well-being. In SHS Web of Conferences. Vol. 28: Research Paradigms Transformation in Social Sciences (RPTSS 2015). Les Ulis, 2016. EDP Sciences.
Gade, S. (2018). MSMEs’ role in economic growth–a study on India’s perspective. International Journal of Pure and Applied Mathematics, 118(18), 1727-1741.
Ghozali, I. (2018). Aplikasi analisis multivariate dengan program IBM SPSS.25. Badan Penerbit Universitas Diponegoro.
Gunawan, A., Jufrizen, J., & Pulungan, D. R. (2023). Improving MSME performance through financial literacy, financial technology, and financial inclusion. International Journal of Applied Economics, Finance and Accounting, 15(1), 39-52. https://doi.org/10.33094/ijaefa.v15i1.761
Harvey, M. (2019). Impact of financial education mandates on younger consumers' use of alternative financial services. Journal of Consumer Affairs, 53(3), 731–769. https://doi.org/10.1111/joca.12242
Humaidi, A., Khoirudin, M., Adinda, A. R., & Kautsar, A. (2020). The effect of financial technology, demography, and financial literacy on the financial management behavior of the productive age in Surabaya, Indonesia. International Journal of Advances in Scientific Research and Engineering, 6(01), 77–81. http://doi.org/10.31695/IJASRE.2020.33604
Kaiser, T., & Menkhoff, L. (2017). Does financial education impact financial literacy and behavior, and if so, when?. The World Bank Economic Review, 31(3), 611-630. https://doi.org/10.1093/wber/lhx018
Katnic, I., Katnic, M., Orlandic, M., Radunovic, M., & Mugosa, I. (2024). Understanding the role of financial literacy in enhancing economic stability and resilience in Montenegro: A data-driven approach. Sustainability, 16(24), 11065. https://doi.org/10.3390/su162411065
Koskelainen, T., Kalmi, P., Scornavacca, E., & Vartiainen, T. (2023). Financial literacy in the digital age—A research agenda. Journal of Consumer Affairs, 57(1), 507-528. https://doi.org/10.1111/joca.12510
Lusardi, A. (2019). Financial literacy and the need for financial education: evidence and implications. Swiss journal of economics and statistics, 155(1), 1-8. https://doi.org/10.1186/s41937-019-0027-5
Maheshkar, C., & Soni, N. (2021). Problems faced by Indian micro, small, and medium enterprises (MSMEs). SEDME (Small Enterprises Development, Management & Extension Journal), 48(2), 142–159. https://doi.org/10.1177/09708464211064498
Moko, W., Sudiro, A., & Kurniasari, I. (2022). The effect of financial knowledge, financial attitude, and personality on financial management behavior. International Journal of Research in Business & Social Science, 11(9). https://doi.org/10.20525/ijrbs.v11i9.2210
Morgan, P. J., & Long, T. Q. (2020). Financial literacy, financial inclusion, and savings behavior in Laos. Journal of Asian Economics, 68, 101197. https://doi.org/10.1016/j.asieco.2020.101197
Mutlu, Ü., & Özer, G. (2022). The moderator effect of financial literacy on the relationship between locus of control and financial behavior. Kybernetes, 51(3), 1114-1126. https://doi.org/10.1108/K-01-2021-0062
Nanda, A. P., & Banerjee, R. (2021). Consumer’s subjective financial well‐being: A systematic review and research agenda. International Journal of Consumer Studies, 45(4), 750–776. https://doi.org/10.1111/ijcs.12668
Potrich, A. C. G., Vieira, K. M., & Mendes-Da-Silva, W. (2016). Development of a financial literacy model for university students. Management Research Review, 39(3), 356–376. https://doi.org/10.1108/MRR-06-2014-0143
Rahmawati, U., & Marcella, E. (2023). Locus of control, financial knowledge, financial attitude, financial self-efficacy, and socioeconomic status as antecedents of financial management behavior. Journal of Management and Business Insight, 1(1), 62-72. https://doi.org/10.12928/jombi.v1i1.561
Reswari, A. D., Sudarto, S., & Widyastuti, E. (2018). The influence of financial literacy on financial behavior. Journal of Research in Management, 1(2), 11–17.
Siswanti, I., & Halida, A. M. (2020). Financial knowledge, financial attitude, and financial management behavior: Self–control as mediating. The International Journal of Accounting and Business Society, 28(1), 105-132.
Stolper, O. A., & Walter, A. (2017). Financial literacy, financial advice, and financial behavior. Journal of Business Economics, 87(5), 581-643. https://doi.org/10.1007/s11573-017-0853-9
Talwar, M., Talwar, S., Kaur, P., Tripathy, N., & Dhir, A. (2021). Has financial attitude impacted the trading activity of retail investors during the COVID-19 pandemic?. Journal of Retailing and Consumer Services, 58, 102341. https://doi.org/10.1016/j.jretconser.2020.102341
Tekola, H., & Gidey, Y. (2019). Micro, small, and medium enterprises (MSMEs) contribute to income generation, employment, and GDP: Case study, Ethiopia. Journal of Sustainable Development, 12(3), 46-81. https://doi.org/10.5539/jsd.v12n3p46
Wahyuni, S. F., & Hafiz, M. S. (2023). Financial literacy and financial attitude on financial management behavior: Examining the mediating role of students' behavioral intention at private universities in Indonesia. Investment Management & Financial Innovations, 20(3), 239. https://doi.org/10.21511/imfi.20(3).2023.20
Yahaya, R., Zainol, Z., Osman, J. H., Abidin, Z., & Ismail, R. (2019). The effect of financial knowledge and financial attitudes on financial behavior among university students. International Journal of Academic Research in Business and Social Sciences, 9(8), 22-32. http://dx.doi.org/10.6007/IJARBSS/v9-i8/6205
Yong, C. C., Yew, S. Y., & Wee, C. K. (2018). Financial knowledge, attitude, and behaviour of young working adults in Malaysia. Institutions and Economies, 10(4).
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Journal of Management and Business Insight
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
