IMPROVING FINANCIAL WELL-BEING IN INDONESIA: THE ROLE OF SOCIAL MEDIA AND MEDIATING EFFECT OF FINANCIAL BEHAVIOR

• Main Author: Berlian Megananda, Tarada
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/70054
• Institution: Institut Teknologi Bandung

This research examines the impact of external locus of control, financial literacy, financial self-efficacy, internal locus of control, and social media on financial well-being, focusing on the mediating role of financial behavior. The study employs an online survey questionnaire with 438 respondents. The relationships were investigated using PLS-SEM, and an additional output of different tests using Mann-Whitney and Kruskal-Wallis. Financial well-being can be improved by decreasing the external locus of control, increasing individual financial self-efficacy, financial literacy, and properly using social media. Furthermore, the importance of financial behavior is emphasized by the indirect effects of external locus of control, financial literacy, financial self-efficacy, and social media on financial well-being. Multiple Linear Regression is used to find financial relationship behavior by analyzing social media data. According to the study's findings, financial influencers are social media data variables that have a significant effect on financial behavior. These findings can assist policymakers and business leaders in understanding the most influential factors influencing Indonesia's financial well-being. Furthermore, the Indonesian government encourages the younger generation to improve their literacy index through public financial education. Financial well-being research is critical because it aligns with the government's goal of improving the stability and health of people's finances. People are able to maintain financial control as a result, allowing them to meet financial goals, deal with unexpected expenses in emergencies, deal with financial problems, and enjoy life.