A team of financial researchers
at Universitas Bunda Mulia investigated how financial literacy directly
influences financial behaviors among working-age individuals in the Jakarta,
Bogor, Depok, Tangerang, and Bekasi (JABODETABEK) metropolitan area. The study,
conducted by Hana Nadia, Ali Wardhana, Ika Pratiwi Simbolon, and Frananda SJ,
was accepted for publication on July 20, 2026, in the International Journal
of Applied Economics, Accounting and Management. The findings demonstrate
that higher levels of financial literacy significantly reduce materialistic
tendencies, reliance on credit facilities, and compulsive buying behaviors
driven by emotional triggers. These results highlight the critical necessity of
practical financial education in an era dominated by digital financial
technology and aggressive consumer marketing.
The rapid proliferation of
financial technology (fintech) platforms, such as digital wallets, instant
online loans, and "buy now, pay later" features, has drastically
lowered the friction required to make consumer purchases. In Indonesia, this digital
shift intersects with modern socio-cultural trends like "You Only Live
Once" (YOLO) and self-care lifestyles, encouraging working-age individuals
to spend beyond their immediate means. Young adults frequently engage in
impulse purchases for non-essential goods, ranging from concert tickets and
vacations to luxury everyday items. Without sufficient budgeting routines or
long-term financial planning, individuals face heightened exposure to severe
debt traps and financial instability. Strengthening financial literacy serves
as an essential behavioral mechanism to buffer consumers against systemic
digital credit risks.
To evaluate these dynamics, the
researchers used a quantitative survey design targeting Generation Z workers
aged 17 to 27 who earn an income within the JABODETABEK region. Data gathered
from 160 respondents were analyzed using Partial Least Squares Structural
Equation Modeling (PLS-SEM) via SmartPLS software. This analytical method
evaluated the direct structural paths connecting financial literacy to three
specific behavioral outcomes: materialism, propensity to debt, and compulsive
buying.
The study revealed clear
statistical support for all primary hypotheses:
- Materialism Reduction: Financial literacy
exerts a negative and statistically significant effect on materialism ($\beta
= -0.351, p < 0.001$), demonstrating that financial knowledge
encourages consumers to prioritize long-term stability over material
possessions.
- Debt Avoidance: Financial literacy exerts a
negative and statistically significant impact on the propensity to take on
debt ($\beta = -0.307, p < 0.001$), showing that informed individuals
exercise greater caution when using digital loans or credit facilities.
- Compulsive Buying Mitigation: Financial
literacy exerts a negative and statistically significant effect on
compulsive buying behavior ($\beta = -0.263, p = 0.001$), indicating that
structured financial awareness helps individuals resist emotional purchase
urges.
These findings carry major
implications for public policy, digital finance regulations, and corporate
workplace wellness programs. Educational institutions and government agencies
must prioritize targeted financial education campaigns that move beyond theoretical
concepts to emphasize practical daily budgeting and risk assessment. Fintech
developers and financial institutions also hold a responsible role in
integrating transparency tools and budget management features into their
digital apps to assist users in controlling spontaneous spending habits.
"Individuals with higher
levels of financial literacy tend to manage their finances more rationally,
control their consumption behavior, and reduce their tendency to take on debt
and engage in compulsive buying," noted Ali Wardhana and the research team
at Universitas Bunda Mulia. "A good understanding of financial management
helps individuals distinguish between needs and wants, thereby reducing
materialistic tendencies and encouraging more responsible financial decision
making."
Author Profiles
- Hana Nadia, S.E.: Researcher affiliated with
the Department of Management at Universitas Bunda Mulia, specializing in
consumer financial behavior and digital finance adoption.
- Ali Wardhana, M.M.: Academic researcher and
faculty member at Universitas Bunda Mulia, specializing in financial
management, behavioral finance, and strategic economics.
- Ika Pratiwi Simbolon, S.E., M.Sc.: Lecturer
and researcher at Universitas Bunda Mulia, with expertise in managerial
finance, financial literacy education, and behavioral economics.
- Frananda SJ, S.E.: Co-author and finance
scholar at Universitas Bunda Mulia, focusing on financial markets and
consumer credit dynamics.
Source
- Article Title: The Effect of Financial
Literacy on Materialism, Propensity to Debt, and Compulsive Buying
- Journal Name: International Journal of
Applied Economics, Accounting and Management (IJAEAM)
- Publication Year: 2026
- DOI: https://doi.org/10.59890/ijaeam.v4i4.203
- Official URL: https://mrymultitechpublisher.my.id/index.php/ijaeam/index
0 Komentar