A conceptual study on categorising the money management behavior: Study of millennial in Bandung and Jabodetabek Indonesia
List of Authors
  • Nabila Safira , Raden Aswin Rahadi

Keyword
  • millennial, money management, qualitative research, electronic money, spending, saving

Abstract
  • The spread of Covid-19 disease in Indonesia since March 2020 had fundamentally change many things. Working from home (WFH), large-scale social barriers (PSBB), quarantine policies changes people behaviour. The policies also succeeded in suppressing society mobility in public places and causing people to carry out all activities from home including online shopping and cashless activity. Increasing demand in March as compared to previous months for primary needs, such as food (+59%), school supplies (+34%), and personal care products (+29%) via e-commerce websites (BI,2020). The most popular payment methods for shopping online are via bank transfers (46%) and debit/credit cards (11%), and digital wallets (31%) (Sirclo.com, 2020). 68 percent of digital wallet users or electronic money are Millennial (Ipsos, 2019). One of the problems faced by Millennial is almost everyone in this generation is digitally literate, not all are literate in managing their finances. The Millennial generation will find it easier to use their money for transactions. This is what triggers consumptive nature or hedonism in these circles. The objective of this study was to identifies and classifies different approach to money management that may impact financial behaviour by investigate the economic, social, and psychological factors, and show the important factors that influencing the money management in Millennial. Based on literature synthesis, this research was able to produce a simple conceptual framework based on how respondents respond the economic, social, and psychological factors in their money management approach. The framework can be utilized by financial institution, government, financial education to develop the product and services also consider the three differences to effectively approach to meet Millennial needs in money management behaviour on diverse attitudes and approaches to money management. For future research should explore the large scope and not only limited to the Millennial generation in several cities in Indonesia. A large sample can be used for such a research. This research’s scope relatively small sample of respondent. While this research derived from qualitative responses, quantitative research is also needed to understand money management behaviour.

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