IMPROVING FINANCIAL WELL-BEING OF YOUNG ADULTS IN INDONESIA: FACTORS INFLUENCING FINANCIAL ANXIETY WITH COMPULSIVE BUYING BEHAVIOR AS MEDIATING VARIABLE

• Main Author: Pratiwi Ramadhani, Abbya
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/79635
• Institution: Institut Teknologi Bandung

Financial anxiety has emerged as one of the challenges faced by Indonesian young adults. To reduce financial anxiety as one effort to increase financial well-being, factors that influence financial anxiety need to be studied. This research proposed educational level, excessive use of social media, and gender as the independent variables, with compulsive buying behavior as a mediating variable to financial anxiety. This research conducts an online questionnaire and data from 400 respondents has already been collected. This research uses SEM-PLS to investigate the relationship and additional output from difference tests using Kruskal-Wallis and Mann-Whitney are used for demographical data. There are several results of this research. The result found that there are significant differences in demographical groups of educational level and occupation. However, there are no significant differences in demographical groups of income and gender. The result of path analysis found that excessive use of social media positively influences financial anxiety and compulsive buying behavior directly. There is a negative influence between educational level to compulsive buying directly, but educational level doesn’t have a significant influence on financial anxiety directly. Gender doesn’t have a significant influence on both compulsive buying behavior and financial anxiety directly. Lastly, compulsive buying behavior positively influences financial anxiety. The mediation roles of compulsive buying behavior are found that compulsive buying behavior partially mediates the relationship between excessive use of social media with increasing financial anxiety. Compulsive buying also fully mediates the relationship between educational level with decreasing financial anxiety. However, compulsive buying does not mediate the relationship between gender and financial anxiety. Based on this finding, encouraging healthy online habits and digital financial literacy programs are proposed as business solutions as efforts to reduce financial anxiety to improve financial well-being.