THE EFFECT OF FINANCIAL LITERACY, PARENTAL SOCIALIZATION AND PEERS INFLUENCE ON SAVING BEHAVIOR AND THE ROLE OF FINANCIAL ATTITUDES AS A MEDIATING VARIABLE IN THE MILLENNIAL GENERATION OF WORKERS IN THE CITY OF PALEMBANG

Abstract

The development and progress of the financial market today makes the millennial generation increasingly need knowledge and competence in managing their finances in order to allocate funds appropriately and behave in saving. The purpose of this study is to analyze the influence of financial literacy, parental socialization and peer influence on saving behavior and the role of financial attitude as a mediation of financial literacy on saving behavior. This study applies the use of electronically distributed online questionnaires for data collection. The method used in this study is quantitative analysis using Structural Equation Modeling (SEM), while the Sobel test is used to measure the mediation test. The results showed that financial literacy and parental socialization had a significant effect on saving behavior, while peer influence had no significant effect, but the financial attitude variable was able to mediate financial literacy and saving behavior. This study pays attention to the policies of financial institutions that have been targeted to encourage financial literacy, which is mostly achieved by literacy and informing the millennial generation of Palembang city workers in managing finances.

Keywords

• financial literacy
• financial attitude
• parental socialization
• peer influence
• saving behavior