PROCEEDING OF SHEPO 2020
(International Conference On Social Sciences & Humanity, Economics, And Politics) 234
THE RELATIONSHIP BETWEEN MONEY ATTITUDE AND FINANCIAL MANAGEMENT BEHAVIOR
Selvie Josowanto Oei
College of Management, Dayeh University, Changhua, Taiwan
[email protected]
ABSTRACT
Money is considered the most important thing, but this perception differs from time to time. The previous generation, for example, considered money as a symbol of success, this will impact how they are motivated and can be influenced by their perception of money. So this research aims to determine the perception of young generation towards money and how they manage it.
Keywords : money attitude, financial management behaviour.
1. I
ntroduction
Financial distress can be overcome by achieving financial well being (Dorsey et al. 2019). To achieve financial well being, proper financial management behavior is needed to allocate money wisely (Xiao et al. 2006). People need skills, knowledge, and perspective to make effective decisions about financial resources (Sayinzoga et al. 2016). Perspective is psycological aspect which forms the basis of behavior patterns (Yamauchi & Templer. 1982). Perspective about money called money attitude.
In the days of our ancestors, money was used as an exchange tool, but today money plays a role in various things based on money attitude since Yamauchi
& Templer's 1982 study of determinant of power prestige, retention of time, distrust-consumer competency, anxiety, and bargaining or compulsive behavior (Roberts. 1999). This perspective be affected of several factors, one of them is environment.
2. Literature Review (definition and scale)
2.1 Money Attitude
Money attitude means a person perspective about how and the purpose of using money. Based on Rutherford and Devaney (2009) money attitudes may be defined as an opinion, mindset, or feeling regarding money, its bring meaning and competencies while using money. Money Attitude have five scale which are (Sharif
& Yeoh. 2018) :
Power prestige : money is perceived as a symbol of power (i.e. money is used to influence others), success, status and/or prestige.
Retention Time : a great value on the process of preparation to carefully plan and closely monitor their financial future.
Distrust- consumer competency : a state of not wanting to spend money or being price sensitive. Believing oneself or others in money related manners.
Anxiety : a state of worry or nervousness about money as well as a desire to spend money. The concept to low decisiveness, intolerance of ambiguity and low self- esteem.
Bargain-conscious compulsive : a state of buying preferred goods without regard to price because of desire.
2.2 Financial management behavior
Financial management behavior to refer to positive or desirable behaviors in ways to improve financial well-being (Xiao 2008). Common financial management behaviors include practices related to cash, credit and saving management (Xiao et al. 2006). And being develop as cash management, credit management, savings and investments, and insurance (Dew & Xiao.
2011)
Cash Management : allocation for purchasing or consuming product or service
Credit Management : allocation for debt and fulfilment of debt
Saving and investment management : allocation for saving money or put it on investment
Insurance management : allocation for health insurance, property insurance, and life insurance.
3. Hypothesis and Relationship
Mitchell and Mickel (1999) note that money plays a symbolic role, while also influencing feelings and behavior. In the symbolic role, humans strive for achievement and recognition, status and respect, freedom and control, and power. The involvement of emotions, traits, preferences, and various kinds of things inherent in humans as intellectual and social creatures will interact as the basis for build think then emergence of an action decision (Fiske. 1992).
Chinen and Endo (2012) state that individuals who have the ability to make correct financial decisions will not have financial problems in the future and show sound financial management behavior and be able to determine priority needs. The behavioral aspect concentrates on actions such as saving or investing money.
H1 : Money attitude has relationship to Financial management behavior
PROCEEDING OF SHEPO 2020
(International Conference On Social Sciences & Humanity, Economics, And Politics) 235 4. Measurement
Data
Population of this study is young generation ( who was born between 1995 and 2005) who are living in Indonesia. Using SPSS regression analysis to prove the hypothesis.
Analysis
Sample minimum is 31 sample.
5. Result
Hipotesis 1 accepted
From data in table above, it can be concluded that money attitude affects financial management behavior by 35.9%.
Based on the mean of money attitude scale, the highest young generation’s answer is on retention of time (4.12), means young generation has perspective that careful with money and prepare money for future. Baes on the mean of financial behaviour scale, the highest young generation answer is on saving management (4.01) means young generation put money to saving or doing investment.
REFERENCES
[1] Chinen, K., & Endo, H. (2012). Effects of attitude and background on students' personal financial ability: A United States survey. International Journal of Management, 29(2), 778.
[2] Dorsey, J. D., Hill, P., Moran, N., Nations Azzari, C., Reshadi, F., Shanks, I., & Williams, J. D. (2019).
Leveraging the Existing US Healthcare Structure for Consumer Financial Well‐Being: Barriers, Opportunities, and a Framework toward Future Research. Journal of Consumer Affairs
[3] Fiske, A. P. (1992). The four elementary forms of sociality: framework for a unified theory of social relations. Psychological review, 99(4), 689.
[4] Mitchell, T. R. & Mickel, A. E. (1999). The meaning of money: An individual-difference perspective.
Academy of Management Review, 24 (3), 568-578.
[5] Roberts, J. A. (1999). Demographics and money attitudes: a test of Yamauchi and Templers (1982) money attitude scale in Mexico. Personality and individual Differences, 27(1), 19-35.
[6] Rutherford, L.G. and deVaney, S. A. 2009. Utilizing the theory of planned behavior to understand convenience use of credit cards. J. of Financial Counseling and Planning, 20, 2, 48-63
[7] Sayinzoga, A., Bulte, E. H., & Lensink, R. (2016).
Financial literacy and financial management behavior: Experimental evidence from rural Rwanda. The economic journal, 126(594), 1571- 1599.
[8] Sharif, S. P., & Yeoh, K. K. (2018). Excessive social networking sites use and online compulsive buying in young adults: the mediating role of money attitude. Young Consumers.
[9] Xiao, J. J., Sorhaindo, B., & Garman, E. T. (2006).
Financial management behavior of consumers in credit counseling. International Journal of Consumer Studies, 30(2), 108–121.
[10] Yamauchi, K.T. and Templer, D.J. (1982),
“The development of a money attitude scale”, Journal of Personality Assessment, Vol. 46 No. 5, pp.
522-528.
Model Summary
mod
el R R
Square
Adjusted R Square
Std.
Error of the Estimat
e
1 .599
a
.359 .337 7.316
a. Predictors: (Constant), SUMMA ANOVAa
Model
Sum of Squares
df Mean Square
F Sig.
Regressio n
868.794 1 868.79
4
16.233 .000b
Residual 1552.04 5
29 53.519
Total 2420.83 9
30
a. Dependent Variable: SUMFB b. Predictors: (Constant), SUMMA Coefficientsa
Mode l
Unstandardi zed Coefficients
Standardi zed Coefficie
nts t Si g.
B Std.
Error Beta 1 (Cons
tant) 22.8
74 7.544
3.0 32
.00 5 SUM
MA
.313 .078 .599 4.0
29 .00
0 a. Dependent Variable: SUMFB
Financial management behaviour(Y) Money
Attitudes(X1)
