MILLENNIAL PERSPECTIVE: CATEGORISING MONEY MANAGEMENT BEHAVIOR IN INDONESIA

• Main Author: Safira, Nabila
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/53099
• Institution: Institut Teknologi Bandung

Covid-19 has fundamentally changed our behaviors. increasing the volume of demand during the Covid-19 pandemic 5-10 times, with daily transactions up to 4,8 million transactions in April 2020. Data from the Indonesian Central Bank (BI) indicated an 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 ecommerce 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, 2019). 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. Moreover, some of them forget the importance of saving and investing. The Millennial generation will find it easier to use their money for transactions. This is what triggers consumptive nature or hedonism in these circles. Minister of Finance, Sri Mulyani said that the percentage of saved income is still low. Looking at the phenomenon, in relation to financial behavior in terms of saving behavior, consumption or spending money and the existence of several previous conflicting studies, research needs to be held again exploring Millennial’ money management behavior and factors affecting saving habits for Millennial in Indonesia. The objective of this study was to identifies and classifies different approach to money management that may impact financial behavior by investigate the economic, social, and psychological factors, and show the important factors that influencing the money management in Millennial. To conduct the research by collecting primary data by doing the semi-depth interview with 29 participants between 20 and 40 years were domiciled in Bandung and Jabodetabek, Indonesia. Adopting a qualitative exploratory approach. Based on how participant responds to the economic, sociological, and psychological factor influence their money management behavior, the author identified three distinct approaches to money management: Conservative money management, Creative money management and Entrepreneurial money management (Bamforth & Geursen, 2017). In addition, the finding also shown there are two approach adopted at ones. Millennials are expected to understand which money management approaches are suitable for them and are willing to learn more about the importance of managing money. This research used convenience sampling with a sample size of 29 participants and focused on Millennial preferences in Bandung and Jabodetabek, Indonesia. In the future, the author suggests a larger data and also needed to investigate another factor influence Millennial money management such as sample characteristics: gender, age, marital status, degree type, accommodation, occupation, educational background, and income, and interests with different methods of analysis are also recommended to be applied.