The Effect of Financial Literacy on Young Millennials Investment Decision in West Java

Abstract

The aims of this research is to determine the level of financial literacy of young millennials in West Java, analyze how financial literacy affect young millennials investment decision in West Java, and giving recommendation to improve the skills in young millennial investment decisions in West Java. The data for this research was collected through online questionnaire and distributed to 355 respondents in West Java that actively invested in capital market. The findings indicates that the level of financial literacy of young millennials in West Java is 77.65%. By using multiple linear regression, simultaneously three components of financial literacy, which are financial behavior, financial knowledge, and financial attitude have positive and significant effects on young millennial investment decision in West Java and partially financial behavior, financial knowledge, and financial attitude have positive and significant effects on young millennial investment decision in West Java. This research also suggested various parties, which are the government, financial experts, and capital market community to improve financial literacy in order to improve the skills in young millennial investment decisions in West Java.

Keywords: financial literacy, investment decision, young millennials