Effect of Financial Behavior, Childhood Consumer Experience, And Financial Wellness on Financial Well-Being

Abstract

Research question: This study aims to examine the effect of financial behavior, childhood consumer experience and financial wellness on financial well-being. Motivation: Good financial education will improve financial behavior and financial wellness. Data: The population of this research was students who are in Merauke, Papua, the border area of Indonesia. The sample was selected using a purposive sampling technique producing 386 respondents. Tools: Data analysis using was undertaken using a multiple regression analysis. Findings: The results showed that financial behavior had a particial, but significant effect on financial well-being, childhood consumer experience had no significant effect on financial well-being, and financial wellness had a significant effect on financial wellbeing. Simultaneously, financial behavior, childhood consumer experience and financial wellness had an effect on financial well-being. The limitation of the research comprised of individuals living in certain areas that are strongly influenced by certain socio-cultural conditions. Contribution: The implication of the results of this study is that it may be too early for children to receive education about finance. This research was conducted in Indonesia, in a border region, and as it is one of the countries with the largest population in Asia, the aspect of individual financial management is one of the problems hindering efforts to advance the economy.