ANALYSIS OF THE RELATIONSHIP BETWEEN FINANCIAL LITERACY AND FINANCIAL BEHAVIOUR TOWARDS FINANCIAL DISTRESS IN GENERATION Y AND Z DURING COVID-19 PANDEMIC (CASE STUDY BANDUNG)

• Main Author: Chandra Purwanto, Febbyanthie
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/66692
• Institution: Institut Teknologi Bandung

The world's economic contraction in recent years is unavoidable, given the increasing number of deaths caused by Covid-19 infection. Economically, Indonesian people are unprepared to deal with the country's economic paralysis. People of all income levels, from the poorest to the richest, are seeing income declines, implying that many previously financially secure people have become poor or were on the verge of becoming poor. As the result, the number of Indonesians making loans is growing. In general, this loan distribution remains concentrated on the island of Java. However, this rapid disbursement was followed by a drop in borrowers' compliance to pay instalments. In this research, multiple linear regression was used to analyse the relationship between financial literacy and financial behaviour toward financial distress in generations Y and Z. The result was financial literacy and financial behaviour have a positive and weak relationship toward financial distress. Furthermore, generations Y and Z in Bandung have a moderate level of financial literacy with an average score of 65.37, and during the Covid-19 Pandemic, based on the InCharge Financial Distress/Financial Well-Being scale (IFDFW), generations Y and Z in Bandung experienced moderate financial distress with an average score of 6.19. Keywords: Financial Literacy; Financial Behaviour; Personal Financial Distress; IFDFW