Spending Habits and Financial Literacy Based On Ge
Spending Habits and Financial Literacy Based On Ge
Spending Habits and Financial Literacy Based On Ge
D. Andriani1,2, N Nugraha2
1
Departement of industrial engineering, Department of accounting education,
Universitas Komputer Indonesia, Jl. Dipati Ukur No 112-116, Bandung, Indonesia
2
Universitas Pendidikan Indonesia, Jl. Dr. Setiabudi No. 229, Bandung, Indonesia
[email protected], [email protected]
Abstract. The aim of the study was to investigate the financial behavior of employees
regarding financial literacy and spending habits based on gender. The cluster sampling was
used in this study and 60 employees consist of 30 male and 30 females were chosen and the
analytical method used is different test of independent sample t-test for normally distributed
data, while Mann-Whitney test for distributed data is not normal. The result showed that
financial literacy behavior and spending habits between male and female employees were not
different. Male and female employees had low level of financial literacy and they had tight
spending habits the study also found that male and female employees did not have appropriate
knowledge to manage their financial especially in managing investment and loan. This result in
increasingly tight spending which caused they still have to deal with the monthly instalment
payment in the long run.
1. Introduction
Financial literacy is closely related to financial management. Good financial literacy will have a good
impact on financial management. Financial management that includes planning, management, and
control of financial aspects into individual considerations in achieving financial prosperity. The
spending habits is the habit of spending money. Spending habits will be creating consumptive
behavior and problems in financial management.
Kenichiro Chinen & Endo Hideki expressed that each individual who has the ability to make the
right decision regarding financial will not be on financial trouble in the future. They also showed
healthy financial behavior and able to prioritize their needs, not their wants [1]. Financial literacy and
bad financial management will affect the financial stress. If someone always felt that their income is
not sufficient to meet their need, they should change their consumption and tailored to their income.
One of the solution to balance the income and the spending is to separate need and want and the
shifting individual attitude towards money. Individual who always think that money is everything will
always be burdened with the question how they can live when they cannot get the money. Robert T.
Kiyosaki dan. Sharon L. Lechter expressed that in conducting financial management requires financial
knowledge (financial literacy). Financial literacy is a part of the mental intelligence associated with
how to find solutions to financial problems [2]. Financial literacy is a part of the mental intelligence
associated with how to find solutions to financial problems.
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Published under licence by IOP Publishing Ltd 1
INCITEST IOP Publishing
IOP Conf. Series: Materials Science and Engineering 407 (2018) 012089 doi:10.1088/1757-899X/407/1/012089
1234567890‘’“”
The aim of this study was to investigate the level of financial literacy and spending habits based on
gender. C.D.B. Sceresberg (2013) express there is a strong difference between the financial literacy
rates of men and women [3], while F. Margaretha, found that there was no significant difference
between men and women [4]. Adrian Furham finds women are better in saving, so it can be said that
women are strict in spending their money [5]. Different from previous studies, this study to investigate
the financial behavior of employees regarding financial literacy and spending habits based on gender,
and analyzes employees when receiving a monthly salary, whether they tend to spend their money for
consumed such as spending money on daily needs, vacation, helping family members, or investing
their money.
2
INCITEST IOP Publishing
IOP Conf. Series: Materials Science and Engineering 407 (2018) 012089 doi:10.1088/1757-899X/407/1/012089
1234567890‘’“”
3. Methodology
3.1. Sampling method
The cluster sampling was used in this study and 60 employees consist of 30 male and 30 females were
chosen. Samples were taken from several department in Universitas Komputer Indonesia. The result
data from the questionnaire were analyzed to see whether there were differences in spending habits
and financial literacy between male and female, then analyzed their income allocation in this case the
type of consumption and investment from the participants.
3.2. Measurement
Gender, measured using nominal scale and differentiated into two groups, male and female.
Spending habits measured using Likert scale (5 scales) from the highest point (5) as strongly agree
and the lowest point (1) strongy disagree. The higher score of spending habits represent the
individual tend to become tighter in spending the money. On the contrary, the lowest score reflect
the individual was more loosely when managing the money. Spending habits categorized into two
parts; 1-3 score reflect the loosely spending and the score above 3 to 5 considered as thight
spending habits.
To measure the financial literacy, we used 10 items. The score will categorized in three parts;
between 0–40% which categorized as low financial knowledge, between >40%-60% categorizzed
as moderate financial knowledge, and >60%-100% which categorized as high financial knowledge.
Allocation of income is divided into two groups, there are consumption and investment. Then, the
participants have been asked what kind of consumption investment they like, based on the options
available in the questionnaire.
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INCITEST IOP Publishing
IOP Conf. Series: Materials Science and Engineering 407 (2018) 012089 doi:10.1088/1757-899X/407/1/012089
1234567890‘’“”
other hand, the spending habits data was normally distributed, which mean it can be used to test
differences using parametric average.
Table 1. showed the average score for general knowledge of female was 37.88% which was higher
than the male (29.75%). Both still considered in low category.
Tabel 2 showed that female employees had tighter spending habits. This mean when planning to
use the money, female tend to think deeper and longer regarding the benefit of their purchase.
4.5.2. Spending habits based on gender. Hypothesis testing conducted using parametric average
difference test because data was normally distributed, hence, the spending habit differences was test
using t-Test. Table 2 showed the average score which indicate that female employees score was 3.97
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INCITEST IOP Publishing
IOP Conf. Series: Materials Science and Engineering 407 (2018) 012089 doi:10.1088/1757-899X/407/1/012089
1234567890‘’“”
which was better than male employees (3.82). Female’s spending habits was tighter than male
employees. Nevertheless, the significance value was 0.334 (> 0.05), H2 was accepted. There was no
difference on spending habits between male and female employees.
5. Conclusion
There was no significant difference regarding financial literacy or financial knowledge and the
spending habits between male and female employees. Male and female employees had low financial
literacy. Both genders also develop tight spending habits. Low financial literacy indicate the need of
financial education regarding how to develop financial planning to avoid unimportant buying (impulse
buying) or to help them to understand the right investment decision to provide alternative
income.Consumption patterns of male and female employees were quite the same. They tend to spend
their income on everyday items. They also had investment allocation in terms of savings (both in bank
account and gold). Besides, they also put some of their income into the business and to pay the
housing mortage.
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IOP Conf. Series: Materials Science and Engineering 407 (2018) 012089 doi:10.1088/1757-899X/407/1/012089
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