Demographic Factors, Financial Self-Efficacy, And Financial Independence of Young Adults in Surabaya
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Nov 30, 2023
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Abstract
Purpose : One of the key characteristics that can indicate a person's maturity is financial independence. Unfortunately, not many young adults in Indonesia are successful to become financially independent. Thus, the purpose of this study is to examine the variables that may have an impact on young adults’ financial independence.
Design/methodology/approach : 118 Surabaya-based young adults served as the study's respondents. Distribution of questionnaires was used to collect data, which was then processed using logistic regression. Findings : The findings of this study demonstrate that age, education, marital status, and self-efficacy all have an impact on young adults' financial independence. It is expected that the findings of this study will help those involved in the attempt to increase financial independence among Indonesian young adults. Furthermore, it is expected that this research will contribute to ongoing studies on financial independence.
Paper type : research paper
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References
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Alsemgeest, L., &; Grobbelaar, C. (2015). Spouses' views of gender roles: Financial management in marriage. Journal of Economic and Financial Sciences, 8(3), 843-860. https://doi.org/10.4102/jef.v8i3.125
Amato, P. R., & Kane, J. B. (2011). Lifecourse pathways and the psychosocial adjustment of young adult women. Journal of Marriage and Family, 73, 279 –295. DOI:10.1111/j.1741-3737.2010.00804.x
Ariadi, R. (2015). Analysis of the Relationship between Financial Literacy and Demographics with Investment, Saving and Consumption. FINESTA, 3(1), 7-12.
Bea, M. D., &; Yi, Y. (2018). Variation in Young Adults: Transitions to Financial Independence and Implications for Financial Security. Journal Of Marriage And Family, 81(2), 397-414. https://doi.org/10.1111/jomf.12553
Borjas, M., Ricardo, C., Escalante-Barrios, E. L., Valencia, J., &; Aparicio, J. (2020). Financial independence and academic achievement: Are there key factors of transition to adulthood for young higher education students in Colombia? Frontiers in Psychology, 11. https://doi.org/10.3389/fpsyg.2020.01330
Butterbaugh, S. M., Ross, D. B., &; Campbell, A. (2019). My Money and Me: Attaining Financial Independence in Emerging Adulthood Through a Conceptual Model of Identity Capital Theory. Contemporary Family Therapy, 42, 33-45. DOI:10.1007/S10591-019-09515-8
Cepa, K., &; Furstenberg, F. F. (2020). Reaching adulthood: Persistent beliefs about the importance and timing of adult milestones. Journal of Family Issues, 42(1), 27-57. https://doi.org/10.1177/0192513x20918612
Cui, X., Xiao, J. J., Yi, J., Porto, N., &; Cai, Y. (2019). Impact of Family Income in Early Life on Financial Independence of Young Adults: Evidence from a Matched Panel Data. International Journal of Consumer Studies. DOI:10.1111/IJCS.12536
Early. (2012). Today's Young Adults Are Increasingly Not Independent. https://lifestyle.kompas.com/read/2012/05/14/11201298/Dewasa.Muda.Saat.Ini.Makin.Tidak.Mandiri. Retrieved February 25, 2020.
Farrell, L., Fry, T. R., & Risse, L. (2016). The significance of financial self-efficacy in explaining women's personal finance behaviour. Journal of Economic Psychology, 54, 85-99. https://doi.org/10.1016/j.joep.2015.07.001
Handi, A. K., &; Mahastanti, L. A. (2012). Money use behavior: whether it is different for gender and financial difficulties. Thesis. Faculty of Economics and Business, Satya Wacana University. Salatiga.
Hasanah, N. (2017). Living Independently at a Young Age. https://www.kompasiana.com/nur-hasanah/590780964723bd3f6879d720/hidup-mandiri-di-usia-muda. Retrieved 20 November 2019.
Hill, J. M., van der Geest, V. R., &; Blokland, A. A. J. (2017). Leaving the Bank of Mum and Dad: Financial Independence and Delinquency Desistance in Emerging Adulthood. Journal of Developmental and Life-Course Criminology, 3(4), 419–439. doi:10.1007/s40865-017-0058-5
Hilgert, M.A., Hogarth, J.M., Beverly, S. (2003). House-hold financial management: The connection between knowledge and behavior. Federal Reserve Bulletin, July, 309–322, https://doi.org/10.1.1.379.9686
Junaidy, D., &; Surjaningrum, E. R. (2014). Quality of Life Differences in Working and Non-Working Early Adults. Journal of Industrial and Organizational Psychology, 3(2), 102-107. http://journal.unair.ac.id/downloadfull/JPIO8903-2de62e6f98fullabstract.pdf
Kim, J., LaTaillade, J. &; Kim, H. (2011). Family processes and children's financial socialization. Journal of Family and Economic Issues, 32, 668-679.
Kim, J. H. & Torquati, J. C., (2016). Does parental financial assistance assist young adults to be financially healthy? Effects of parentchild relationship qualities on financial outcomes and happiness. International Journal of Home Economics, 9(2), 40-55.
Lalonde, K. and Schmidt, A. (2010). Credit Cards and Student Interest: A Financial Literacy Survey of College Students. Research in Higher Education Journal, 1-14.
LeBaron, A. B., Runyan, S. D., Jorgensen, B. L., Marks, L. D., Li, X., & Hill, E. J. (2018). Practice Makes Perfect: Experiential Learning as a Method for Financial Socialization. Journal of Family Issues, 0192513X1881291. DOI:10.1177/0192513x18812917
Lee, J. C., &; Mortimer, J. T. (2009). Family socialization, economic self-efficacy, and the attainment of financial independence in early adulthood. Longitudinal and Life Course Studies, 1(1). https://doi.org/10.14301/llcs.v1i1.28
Falahati, L., &; Paim, L. (2011). A comparative study in Money Attitude among University Students: A Gendered View. Journal of American Science, 7(6), 1144-1148.
Lown, J. M. (2011). Development and validation of a financial self-efficacy scale. Journal of Financial Counseling and Planning, 22(2), 54-63.
Mahdzan, N. S., and Tabiani, S. (2013). The Impact of Financial Literacy on Individual Saving: and Exploratory Study in the Malaysian Context, Transformation in Business and Economic, Vol. 12, No. 1., pp. 41-45.
Navickas, M., Gudaitis, T., &; Krajnakova, E. (2014). Influence of Financial Literacy on Management of Personal Finance in A Young Household. Business: Theory and Practice, 32-40.
Naziev, A. (2017). What is an education? International Conference: Future of Education, Florence, Italy.
Nguyen, L., Trinh, Q. T., &; Tran, T. N. (2021). Factors Affecting Financial Independence of Young Adults: An Empirical Study in Vietnam. Journal of Asian Finance, Economics and Business, 8(10), 97-107. https://doi.org/10.13106/jafeb.2021.vol8.no10.0097
Princess, A. F. (2019). The importance of early adults completing developmental tasks. SCHOULID: Indonesian Journal of School Counseling, 3(2), 35-40. https://doi.org/10.23916/08430011
Ranta, M., Punamäki, R., Chow, A., &; Salmela-Aro, K. (2019). The economic stress model in emerging adulthood: The role of social relationships and financial capability. Emerging Adulthood, 8(6), 496-508. https://doi.org/10.1177/2167696819893574
Ricci, T. (2018). The Impact of Financial Independence on the Subjective Well-being of Male Emerging Adults: An Analysis of Potential Moderating Effects of Masculine Norm Conformity. Alliant International University, ProQuest Dissertations Publishing.
Settersten, R. A., Ottusch, T. M., &; Schneider, B. (2015). Becoming adult: Meanings of markers to adulthood. Emerging Trends in the Social and Behavioral Sciences, 1-16. https://doi.org/10.1002/9781118900772.etrds0021
Taroza, L., (2020). Determinants of Young Adults' Financial Independence. Bachelor thesis, Vytautas Magnus University.
Taylor, P., & Walker, A. (2013). Intergenerational relations in the labour market: The attitudes of employers and older workers. The New Generational Contract, 173-200. https://doi.org/10.4324/9781315072289-16
Tsang, S. K., Hui, E. K., &; Law, B. C. (2012). Positive identity as a positive youth development construct: A conceptual review. The Scientific World Journal, 2012, 1-8. https://doi.org/10.1100/2012/529691
Vosylis, R., &; Klimstra, T. (2020). How does financial life shape emerging adulthood? short-term longitudinal associations between perceived features of emerging adulthood, financial behaviors, and financial well-being. Emerging Adulthood, 216769682090897. https://doi.org/10.1177/2167696820908970
Xiao, J. J., Chatterjee, S., & Kim, J. (2014). Factors associated with financial independence of young adults. International Journal of Consumer Studies, 38(4), 394-403. https://doi.org/10.1111/ijcs.12106
Woodyard, A., & Robb, C. (2012). Financial knowledge and the gender gap. Journal of Financial Therapy, 3(1). https://doi.org/10.4148/jft.v3i1.1453
Yulfa, R., &; Herawati, T. (2017). The influence of social support and financial management toward family well-being in early marriage. Journal of Family Sciences, 2(2), 45. https://doi.org/10.29244/jfs.2.2.45-57
Allsop, D. B., Boyack, M. N., Hill, E. J., Loderup, C. L., &; Timmons, J. E. (2020). When parenting pays off: Influences of parental financial socialization on children's outcomes in emerging adulthood. Journal of Family and Economic Issues. https://doi.org/10.1007/s10834-020-09716-6
Alsemgeest, L., &; Grobbelaar, C. (2015). Spouses' views of gender roles: Financial management in marriage. Journal of Economic and Financial Sciences, 8(3), 843-860. https://doi.org/10.4102/jef.v8i3.125
Amato, P. R., & Kane, J. B. (2011). Lifecourse pathways and the psychosocial adjustment of young adult women. Journal of Marriage and Family, 73, 279 –295. DOI:10.1111/j.1741-3737.2010.00804.x
Ariadi, R. (2015). Analysis of the Relationship between Financial Literacy and Demographics with Investment, Saving and Consumption. FINESTA, 3(1), 7-12.
Bea, M. D., &; Yi, Y. (2018). Variation in Young Adults: Transitions to Financial Independence and Implications for Financial Security. Journal Of Marriage And Family, 81(2), 397-414. https://doi.org/10.1111/jomf.12553
Borjas, M., Ricardo, C., Escalante-Barrios, E. L., Valencia, J., &; Aparicio, J. (2020). Financial independence and academic achievement: Are there key factors of transition to adulthood for young higher education students in Colombia? Frontiers in Psychology, 11. https://doi.org/10.3389/fpsyg.2020.01330
Butterbaugh, S. M., Ross, D. B., &; Campbell, A. (2019). My Money and Me: Attaining Financial Independence in Emerging Adulthood Through a Conceptual Model of Identity Capital Theory. Contemporary Family Therapy, 42, 33-45. DOI:10.1007/S10591-019-09515-8
Cepa, K., &; Furstenberg, F. F. (2020). Reaching adulthood: Persistent beliefs about the importance and timing of adult milestones. Journal of Family Issues, 42(1), 27-57. https://doi.org/10.1177/0192513x20918612
Cui, X., Xiao, J. J., Yi, J., Porto, N., &; Cai, Y. (2019). Impact of Family Income in Early Life on Financial Independence of Young Adults: Evidence from a Matched Panel Data. International Journal of Consumer Studies. DOI:10.1111/IJCS.12536
Early. (2012). Today's Young Adults Are Increasingly Not Independent. https://lifestyle.kompas.com/read/2012/05/14/11201298/Dewasa.Muda.Saat.Ini.Makin.Tidak.Mandiri. Retrieved February 25, 2020.
Farrell, L., Fry, T. R., & Risse, L. (2016). The significance of financial self-efficacy in explaining women's personal finance behaviour. Journal of Economic Psychology, 54, 85-99. https://doi.org/10.1016/j.joep.2015.07.001
Handi, A. K., &; Mahastanti, L. A. (2012). Money use behavior: whether it is different for gender and financial difficulties. Thesis. Faculty of Economics and Business, Satya Wacana University. Salatiga.
Hasanah, N. (2017). Living Independently at a Young Age. https://www.kompasiana.com/nur-hasanah/590780964723bd3f6879d720/hidup-mandiri-di-usia-muda. Retrieved 20 November 2019.
Hill, J. M., van der Geest, V. R., &; Blokland, A. A. J. (2017). Leaving the Bank of Mum and Dad: Financial Independence and Delinquency Desistance in Emerging Adulthood. Journal of Developmental and Life-Course Criminology, 3(4), 419–439. doi:10.1007/s40865-017-0058-5
Hilgert, M.A., Hogarth, J.M., Beverly, S. (2003). House-hold financial management: The connection between knowledge and behavior. Federal Reserve Bulletin, July, 309–322, https://doi.org/10.1.1.379.9686
Junaidy, D., &; Surjaningrum, E. R. (2014). Quality of Life Differences in Working and Non-Working Early Adults. Journal of Industrial and Organizational Psychology, 3(2), 102-107. http://journal.unair.ac.id/downloadfull/JPIO8903-2de62e6f98fullabstract.pdf
Kim, J., LaTaillade, J. &; Kim, H. (2011). Family processes and children's financial socialization. Journal of Family and Economic Issues, 32, 668-679.
Kim, J. H. & Torquati, J. C., (2016). Does parental financial assistance assist young adults to be financially healthy? Effects of parentchild relationship qualities on financial outcomes and happiness. International Journal of Home Economics, 9(2), 40-55.
Lalonde, K. and Schmidt, A. (2010). Credit Cards and Student Interest: A Financial Literacy Survey of College Students. Research in Higher Education Journal, 1-14.
LeBaron, A. B., Runyan, S. D., Jorgensen, B. L., Marks, L. D., Li, X., & Hill, E. J. (2018). Practice Makes Perfect: Experiential Learning as a Method for Financial Socialization. Journal of Family Issues, 0192513X1881291. DOI:10.1177/0192513x18812917
Lee, J. C., &; Mortimer, J. T. (2009). Family socialization, economic self-efficacy, and the attainment of financial independence in early adulthood. Longitudinal and Life Course Studies, 1(1). https://doi.org/10.14301/llcs.v1i1.28
Falahati, L., &; Paim, L. (2011). A comparative study in Money Attitude among University Students: A Gendered View. Journal of American Science, 7(6), 1144-1148.
Lown, J. M. (2011). Development and validation of a financial self-efficacy scale. Journal of Financial Counseling and Planning, 22(2), 54-63.
Mahdzan, N. S., and Tabiani, S. (2013). The Impact of Financial Literacy on Individual Saving: and Exploratory Study in the Malaysian Context, Transformation in Business and Economic, Vol. 12, No. 1., pp. 41-45.
Navickas, M., Gudaitis, T., &; Krajnakova, E. (2014). Influence of Financial Literacy on Management of Personal Finance in A Young Household. Business: Theory and Practice, 32-40.
Naziev, A. (2017). What is an education? International Conference: Future of Education, Florence, Italy.
Nguyen, L., Trinh, Q. T., &; Tran, T. N. (2021). Factors Affecting Financial Independence of Young Adults: An Empirical Study in Vietnam. Journal of Asian Finance, Economics and Business, 8(10), 97-107. https://doi.org/10.13106/jafeb.2021.vol8.no10.0097
Princess, A. F. (2019). The importance of early adults completing developmental tasks. SCHOULID: Indonesian Journal of School Counseling, 3(2), 35-40. https://doi.org/10.23916/08430011
Ranta, M., Punamäki, R., Chow, A., &; Salmela-Aro, K. (2019). The economic stress model in emerging adulthood: The role of social relationships and financial capability. Emerging Adulthood, 8(6), 496-508. https://doi.org/10.1177/2167696819893574
Ricci, T. (2018). The Impact of Financial Independence on the Subjective Well-being of Male Emerging Adults: An Analysis of Potential Moderating Effects of Masculine Norm Conformity. Alliant International University, ProQuest Dissertations Publishing.
Settersten, R. A., Ottusch, T. M., &; Schneider, B. (2015). Becoming adult: Meanings of markers to adulthood. Emerging Trends in the Social and Behavioral Sciences, 1-16. https://doi.org/10.1002/9781118900772.etrds0021
Taroza, L., (2020). Determinants of Young Adults' Financial Independence. Bachelor thesis, Vytautas Magnus University.
Taylor, P., & Walker, A. (2013). Intergenerational relations in the labour market: The attitudes of employers and older workers. The New Generational Contract, 173-200. https://doi.org/10.4324/9781315072289-16
Tsang, S. K., Hui, E. K., &; Law, B. C. (2012). Positive identity as a positive youth development construct: A conceptual review. The Scientific World Journal, 2012, 1-8. https://doi.org/10.1100/2012/529691
Vosylis, R., &; Klimstra, T. (2020). How does financial life shape emerging adulthood? short-term longitudinal associations between perceived features of emerging adulthood, financial behaviors, and financial well-being. Emerging Adulthood, 216769682090897. https://doi.org/10.1177/2167696820908970
Xiao, J. J., Chatterjee, S., & Kim, J. (2014). Factors associated with financial independence of young adults. International Journal of Consumer Studies, 38(4), 394-403. https://doi.org/10.1111/ijcs.12106
Woodyard, A., & Robb, C. (2012). Financial knowledge and the gender gap. Journal of Financial Therapy, 3(1). https://doi.org/10.4148/jft.v3i1.1453
Yulfa, R., &; Herawati, T. (2017). The influence of social support and financial management toward family well-being in early marriage. Journal of Family Sciences, 2(2), 45. https://doi.org/10.29244/jfs.2.2.45-57