Articles

Behavioral Finance: The Role of Self-Efficacy and Goal-Setting of Motivation in Financial Literacy among Small Rice Farmers

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This research focused on understanding financial literacy alongside self-efficacy and goal-setting motivation behaviors within small-scale rice farmers in Daet, Camarines Norte. An integrated approach was conducted through a combination of a survey with 71 farmers, and a focus group with 10 farmers. For the quantitative component, descriptive statistics, correlation and regression analyses were used, while qualitative responses were organized through thematic analysis. The research found farmers had high motivational and selective self-efficacy in terms of income diversification and financial task prioritization. However, weak adaptability to financial shocks, high-order decision-making, and advanced task prioritization were noted. Self-efficacy, and goal-setting of motivation were found to be strong predictors of financial literacy, accounting for 79.3% of the explained variance. Financially competent farmers had proactive planning, disciplined cash control and goal-directed behaviors correlating to the competencies of financial structuring and cash control. Major self-directed activities reported were seasonal cash planning, digital financial tools, and cash management within families. The need to address behavioral aspects of finance in capacity-building programs was clearly established within the findings. Guides to policy and program design that enhances the socio-economic status and financial resilience of smallholder farmers will be improved with this focus on self-efficacy and goal-setting as primary motivators.

The Influence of Financial Literacy and Cashless Payment on Consumptive Behavior of Generation Z in Jakarta

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The increasing adoption of digital financial services has significantly reshaped consumption patterns, particularly among Generation Z who are native to digital environments. Despite rising national financial literacy levels, the gap between knowledge and actual financial behavior persists. This study examines the effect of financial literacy and cashless payment on the consumptive behavior of Generation Z in the DKI Jakarta region. A quantitative approach was employed with purposive sampling, involving 130 respondents. Data were collected using structured questionnaires and analyzed using multiple linear regression in SPSS. The results reveal that financial literacy has a significant negative effect on consumptive behavior, while cashless payment has a significant positive effect. Moreover, both variables jointly influence consumer behavior significantly. These findings highlight the paradox of financial awareness coexisting with increasing consumption risks due to frictionless payment systems. The study suggests that educational initiatives should not only focus on enhancing financial knowledge but also promote behavioral control when using digital financial tools.

Determinants of Financial Literacy, Digital Literacy, Internet Penetration and Consumer Confidence Level Mediated by Fintech Growth on Retail Industry Growth in Indonesia

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This study evaluates how financial literacy, digital literacy, internet penetration, and consumer confidence influence retail industry growth in Indonesia, emphasizing the mediating role of fintech. In the era of industry 4.0, technology, especially fintech, has transformed conventional financial business models into digital ones, accelerating transactions and financial inclusion. The Covid-19 pandemic has further driven digitalization, although it has posed major challenges for the retail industry. This study aims to determine the actual impact of the development of fintech applications including the influence of financial literacy, digital literacy, internet penetration and consumer confidence levels on the development or growth of retail in Indonesia. This study uses a quantitative method with a focus on analyzing the relationship between financial literacy, digital literacy, internet penetration, and consumer confidence levels in the growth of the retail industry, both directly and through the mediation of fintech growth. The data used are secondary data that include information on the financial literacy index, digital literacy index, internet penetration level, consumer confidence index, fintech adoption level, and retail performance indicators. To overcome incomplete data, imputation and proxy variable methods are used. The analysis was conducted using multiple linear regression to identify direct relationships between variables, and structural equation modeling (SEM) to comprehensively evaluate the influence of fintech mediation. This study shows that financial literacy, digital literacy, and consumer confidence levels have a significant influence on retail growth, both with and without fintech growth mediation. Digital literacy and consumer confidence levels have a positive impact, reflecting that understanding of digital technology and consumer confidence contribute to retail development. Conversely, financial literacy shows a negative influence. Internet penetration does not show a significant influence on retail growth, either directly or through fintech mediation.

Moderation of Life Style on the Influence of Financial Literacy and Self-Control on the Saving Behavior of Millennial Employees in Denpasar City

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This study aims to analyze the influence of financial literacy and self-control on the saving behavior of millennial employees, as well as the moderating role of lifestyle in the relationship. Financial literacy, which includes an individual’s understanding of basic financial concepts and money management, is hypothesized to play an important role in increasing saving behavior. Self-control, an individual’s ability to resist consumer impulses and make wise financial decisions, is also considered a key factor influencing the tendency to save. However, excessive consumption behavior as part of the millennial lifestyle can potentially hinder savings efforts even though they have adequate financial literacy and self-control. In this study, lifestyle is modeled as a moderating variable that can weaken or strengthen the influence of financial literacy and self-control on saving behavior. Data collection was conducted through a survey of millennial employees from various job sectors. Data analysis used the moderated regression method to test the interaction between financial literacy, self-control, and lifestyle in influencing saving behavior. The results showed that financial literacy and self-control had a significant positive effect on saving behavior. However, lifestyle acts as a negative moderator, where a consumptive lifestyle weakens the relationship between financial literacy and self-control with saving behavior. This finding provides practical implications for individuals and companies, especially in raising awareness of the importance of lifestyle control and financial literacy to encourage better saving behavior among millennial employees.

Empowering Financial and Digital Literacy to Build Resilience of MSMEs: Proposed Implementation in Bandung City

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This study investigates the factors that influence financial and digital literacy among MSMEs in Bandung. Through semi-structured interviews with 5 key stakeholders, including banks, the MSMEs Agency, entrepreneurs, business incubators, and Financial Services Authority (OJK), the research revealed significant gaps in financial literacy, particularly in financial management and reporting, which hinder MSMEs’ access to credit and growth. Many entrepreneurs rely on simple calculations and struggle to create accurate financial reports. Digital literacy challenges, such as limited adoption of digital technology and uneven internet access, also hinder MSMEs participation in the digital economy. Key barriers include difficulty changing financial habits, limited mentorship, and limited budgets to support the program. The study emphasises the importance of financial education, noting that businesses with large lines of credit often lack comprehensive financial literacy. Based on these findings, targeted interventions are proposed, including comprehensive financial education program and digital skills training. The study emphasised the need for collaboration between the government and financial institutions to improve financial inclusion and literacy. The study proposes a Digital Creative Academy that aims to improve the digital marketing capabilities of MSMEs, particularly in video content creation and live streaming on e-commerce platforms. The program targets 750 micro-entrepreneurs in 30 sub-districts, addressing the need for digital skills in a growing market. This research contributes to understanding the challenges of MSMEs development in Indonesia and offers practical recommendations for policymakers and educators to strengthen MSMEs resilience in the digital age.

Development of Marketing Strategy to Improve AFX Market Penetration in Indonesia

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In this paper, we examine the marketing strategy of AFX, a pseudonym for a real forex trading platform. This alias helps us discuss the company’s strategies without disclosing its identity. Our focus is on AFX’s efforts to expand its market presence in Indonesia. Despite the rapid growth of the global fintech sector, AFX has not effectively reached the young Indonesian market due to low financial literacy levels.

This study uses both qualitative and quantitative research methods to explore the factors that affect AFX’s position in the market and its strategic marketing actions. We apply the 7P Marketing Mix and STP (Segmentation, Targeting, Positioning) frameworks to analyze AFX’s internal processes and external challenges. The goal is to propose strategies that could increase the platform’s Monthly Active Users (MAU).

 

The Effect of Green Intellectual Capital and Financial Literacy on Sustainable Financial Performance of Tofu Factory SMEs in Karawang Regency

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Sustainable financial performance is one of the main objectives of SMEs, but achieving optimal sustainable financial performance needs to be supported by the ability of resources owned by SMEs, both from the level of green intellectual capital and financial literacy. Hence, this research aims to determine the effect of green intellectual capital and financial literacy on sustainable financial performance. This research uses a quantitative descriptive method. Data is collected in the form of primary data through the distribution of questionnaires. The study population consisted of all Tofu Factory SMEs in Karawang Regency, as many as 105 SMEs, using a Purposive Sampling Strategy Criteria; thus, the final sample used was 90 respondents. Data processing techniques were carried out using PLS with SmartPLS 3.0 software through three data testing stages: the outer model, the inner model, and the hypothesis. The results found a positive and significant influence of green intellectual capital on the sustainable financial performance of Tofu Factory SMEs. Sustainable financial performance is also positively and significantly influenced by the financial literacy of Tofu Factory SMEs. Suggestions for further researchers are expected to add variables of green product innovation, creativity capital, and green financing, because those who examine these variables are still very limited; thus, they can create a more accurate model based on the actual conditions in SMEs.

Empowering Women through Financial Literacy and Financial Inclusion: Lesson Learned From Pandemic Impact

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This study examines the impact of financial literacy and financial inclusion on women’s empowerment, since it is crucial for gender equality and sustainable development. This research method involves collecting primary data through questionnaires distributed to a sample of housewives who live in West Java. Secondary data is also used to support the analysis. Variables analyzed include women’s financial literacy, planning, decision-making, crisis, financial inclusion, and women empowerment. Descriptive statistics and regression analysis were used to analyze the data. Findings will shed light on the role of financial literacy and inclusion in women’s empowerment, aiding policy efforts to enhance access to financial services and increase women’s economic participation.

The Influence of Financial Literacy, Risk Tolerance, and Demographic Factors on Investment Decision among Generation Z and Millennial in Greater Jakarta and Greater Bandung

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Financial services and products are getting more complex and difficult to comprehend for many consumers. Consumers with limited financial literacy may struggle to make wise decisions about their financial (investment) decisions. Financial literacy capital market in Indonesia still in lowest level. In addition, low financial literacy will increase the number of illegal investments. Throughout 2022, the Indonesian police have handled 28 illegal investment cases with a total loss of 31.4 trillion to the community. The victim also came from varied backgrounds, men and women, young and old, from those who did not go to school until undergraduates, from low-income to high. The purpose of this study is to determine the relationship between financial literacy, risk tolerance, and demographic factors toward investment decisions among Generation Z and millennials in Greater Jakarta and Greater Bandung. Variable financial literacy used in this study includes financial knowledge, behavior, and attitude. An online questionnaire was conducted and there were 216 respondents who participated in this research. A quantitative approach was used to analyze the data collected using multiple linear regression through SPSS. The study found that financial knowledge, financial behavior, financial attitude, age, and occupation have a significant effect on investment decisions. Meanwhile, risk tolerance, gender, and income do not have a significant effect on investment decision.