The Effect of Financial Knowledge and Financial Socialization on Financial Well-being of Millennial Investors in Bandung City: The Mediating Role of Financial Behavior
DOI:
https://doi.org/10.24256/kharaj.v8i3.12363Keywords:
financial knowledge; financial socialization; financial behavior; financial well-being.Abstract
This study examines the effect of financial knowledge, financial socialization on financial well-being of millennial investors in Bandung, with financial behavior serving as a mediating variable. The research method used was a descriptive associative quantitative method with a survey method using a questionnaire of 100 millennial investor respondents in Bandung. Data analysis was carried out using Partial Least Square-Structural Equation Modelling (PLS-SEM). The results of the study show that financial knowledge and financial socialization have a positive effect on financial well-being, both directly and indirectly through financial behavior as a mediating variable. These findings reinforce the theory of planned behavior which emphasizes the importance of alignment between values, attitudes and behaviors in achieving financial well-being. This study confirms that financial well-being is influenced not only by income levels but also by attitude and behaviors.
References
Ajzen. (1991). The theory of planned behavior. Organizational Behavior and Human Decision Processes. https://doi.org/10.1016/0749-5978(91)90020-T.
Atletica, S. P., & Sembiring, F. M. (2025). The Effect of Financial Literacy, Financial Self-Efficacy and Social Economy Status on Financial Management Behavior in Yonarmed 2/KS Medan Soldiers. Syntax Literate: Indonesian Scientific Journal, 10(3). https://doi.org/10.36418/syntax-literate.v10i3.57901
Bai, R. (2023). Impact of financial literacy, mental budgeting and self control on financial wellbeing: Mediating impact of investment decision making. PLoS ONE. https://doi.org/10.1371/journal.pone.0294466
Bhatia, S., & Singh, S. (2024). Exploring financial well-being of working professionals in the Indian context. Journal of Financial Services Marketing, 29(2), 474–487. https://doi.org/10.1057/s41264-023-00215-x
Chen, H., & Volpe, R. P. (1998). An analysis of personal financial literacy among college students. Financial Services Review, 7(2), 107–128. https://doi.org/10.1016/S1057-0810(99)80006-7
Dew, J. (2011). The financial management behavior scale: Development and validation. Journal of Financial Counseling and Planning, 43-59.
Gafoor, A., Amilan, S., & Patel, V. (2024). Financial well-being of internal migrant labours: The role of financial socialisation, financial knowledge and financial behaviour. International Journal of Social Economics, 52(1), 78–90. https://doi.org/10.1108/IJSE-01-2024-0044
Gudmunson & Danes. (2011). Family financial socialization: Theory and critical review. Journal of Family and Economic Issues. https://doi.org/10.1007/s10834-011-9275-y
Guo, B. & Huang(2023). Financial Well-Being and Financial Capability among Low-Income Entrepreneurs. Journal of Risk and Financial Management. https://doi.org/10.3390/jrfm16030181
Hair, J. F., Hult, G. T. M., Ringle, C. M., Sarstedt, M., Danks, N. P., & Ray, S. (2021). Partial least squares structural equation modeling (PLS-SEM) using R: A workbook. Springer Nature. https://doi.org/10.1007/978-3-030-80519-7
Haqiqi, A. & Milad, K. (2025). Behavioral Risk in Precious Metal Investment: An Analysis of FOMO (Fear of Missing Out) among Pegadaian UPC Pasar Wadungasri Customers. Scientific Journal of Management and Entrepreneurship. https://doi.org/10.55606/jimak.v4i2.4113
Komara, E. F., Nugraha, & Purnamasari, I. (2023). The Effect of Cognitive Bias and Emotional Bias on Investment Decisions (Study on Young Investors at the UNJANI Investment Gallery). Journal of Sharia Economics Pelita Bangsa, 8(2). https://doi.org/10.37366/jespb.v8i02.799
Kumar, P. A. (2024). Do Villagers' Financial Socialization, Financial Literacy, Financial Attitude, and Financial Behavior Predict Their Financial Well-Being? Evidence from an Emerging India. Journal of Family and Economic Issues. https://doi.org/10.1007/s10834-024-09976-6
Fitzgerald, S. F. (2024). How do digital financial literacy, financial behavior, and skills affect financial well-being. An exploratory study on Gen Z. Integrated Journal of Business and Economics. https://doi.org/10.33019/ijbe.v8i1.851
Nurhaliza, R., & Simatupang, F. S. (2024). The Effect of Financial Literacy and Investment Motivation on Students' Investment Interest in Cimahi City. Economists: Journal of Economics and Business, 8(2), 1771–1777. https://doi.org/10.33087/ekonomis.v8i2.1658
Pahlevan Sharif, S., & Naghavi, N. (2020). Family financial socialization, financial information seeking behavior and financial literacy among youth. Asia-Pacific Journal of Business Administration, 12(2), 163–181. https://doi.org/10.1108/APJBA-09-2019-0196
Prista, A. N. (2025). The Role of Financial Knowledge, Financial Attitude, Financial Socialization, and Financial Literacy in Improving Financial Well-being. International Journal of Social Economics.
Sekaran, U., & Bougie, R. (2016). Research methods for business: A skill-building approach (7th ed.). Wiley.
Shim, S. (2010). Financial socialization of first-year college students: The roles of parents, work, and education. Journal of Youth and Adolescence, 39(12), 1457–1470. https://doi.org/10.1007/s10964-009-9432-x
Simatupang, F. S., Nugraha, N., & Purnamasari, I. (2024). Analysis of the Influence of Financial Literacy on Investment Decisions Mediated by Financial Behavior: A Study on Students of the Faculty of Economics and Business, Jenderal Achmad Yani University. International Journal of Research in Community Services, 5(3), 146–152. https://doi.org/10.46336/ijrcs.v5i3.717
Sugiyono. (2022). Quantitative, Qualitative, and R&D Research Methods. Alphabetical CV.
Utkarsh. (2020). Catch them young: Impact of financial socialization, financial literacy and attitude towards money on financial well-being of young adults. International Journal of Consumer Studies. https://doi.org/10.1111/ijcs.12583
Wulandari, D. F., & Siregar, Q. R. (2025). The influence of financial literacy and financial awareness on financial well-being through financial management. Independent: Journal of Accounting and Finance, 4(1), 16–28. https://doi.org/10.59086/jak.v4i1.715
Yuliani, Y. (2024). Impact of financial literacy and financial behavior on investment among millennial in Indonesia: The moderating role of risk profile. International Journal of Financial Studies, Economics and Management, 3(1), 13–25. https://doi.org/10.61549/ijfsem.v3i1.137
Yulianti, E., & Nidar, S. R. (2025). Uncovering the investment phenomenon: Cognitive bias, risk perception, financial literacy, and the use of robo advisors of generation Z. KAGANGA: Journal of Educational History and Social Research of the Humanities, 8(1), 56–70. https://doi.org/10.31539/kaganga.v8i1.14385
Downloads
Published
How to Cite
Issue
Section
Citation Check
License
Copyright (c) 2026 Aisyah Ayu Ningrat Wijayanti, Eka Yulianti
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. In line with the license, authors are allowed to share and adapt the material. In addition, the material must be given appropriate credit, provided with a link to the license, and indicated if changes were made. If authors remix, transform or build upon the material, authors must distribute their contributions under the same license as the original.
