The Effect of Financial Literacy on Financial Behavior of Millennials in Jakarta

Abstract

The purpose of this study is to determine the level of financial literacy of millennials in Jakarta and to determine the effect of financial literacy, income, and age on financial behavior of millennials in Jakarta. The research also aims to give recommendations to improve Jakarta millennials’ financial behavior. The data is collected from 400 respondents. The research found that the financial literacy index of millennials in Jakarta is 80.01% which is categorized as high financial literacy. By using multiple linear regression, this research found that financial literacy, age, and income simultaneously affect financial behavior of millennials in Jakarta. Partially, financial literacy and income positively affect financial behavior of millennials in Jakarta while age negatively affect financial behavior of millennials in Jakarta.

Keywords: Financial Literacy, Demographic Factors, Financial Behavior, Millennials