IMPACT OF FINANCIAL LITERACY, MENTAL BUDGETING AND SELF CONTROL ON SUBJECTIVE WELL-BEING: MEDIATING IMPACT OF INVESTMENT DECISION MAKING

• Main Author: Fahmi, Ranip
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/87253
• Institution: Institut Teknologi Bandung

This study examines the influence of financial literacy, mental budgeting, and selfcontrol on the subjective well-being of productive young adults in Indonesia, measured through psychological satisfaction and financial satisfaction. The background of this research highlights challenges such as inadequate financial literacy, ineffective budgeting behaviour, and insufficient self-control. These issues negatively impact psychological and financial satisfaction. The study formulates hypotheses to investigate the direct and indirect relationships among these variables. Using a quantitative approach, data were collected through six-point Likert scale questionnaires distributed to 344 valid respondents. Partial Least Squares Structural Equation Modeling (PLS-SEM) was employed for data analysis, while SPSS was utilized for descriptive statistical analysis. The findings reveal that financial literacy positively affects investment decision-making and financial satisfaction but does not directly influence psychological satisfaction. Mental budgeting significantly affects investment decision-making and psychological satisfaction, whereas selfcontrol positively influences investment decision-making and psychological satisfaction but does not impact financial satisfaction. Investment decision-making positively affects both dimensions of subjective well-being and mediates the relationship between financial literacy, mental budgeting, self-control and subjective well-being. This research contributes to understanding how financial behaviour and cognitive processes influence subjective well-being. The study provides actionable insights for policymakers to develop targeted interventions aimed at improving the financial and psychological well-being of Indonesian youth.