Year
2025
Abstract
This This study investigates the influence of psychological characteristics and financial socialization on personal financial management behavior (PFMB) among young professionals in Indonesia, with financial literacy as a mediating variable. The psychological characteristics include attitude toward money, financial self-efficacy, and financial risk tolerance. Financial socialization is measured through parental direct teaching and exposure to peers and media. Data were collected from 209 respondents using a structured online questionnaire and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) in SmartPLS 4. The results show that all three psychological characteristics and both financial socialization variables significantly influence PFMB. Financial literacy mediates the relationship between attitude toward money and financial self-efficacy with PFMB, as well as the relationship between both socialization agents and PFMB. However, financial literacy does not mediate the effect of financial risk tolerance. Multi-group analysis based on gender reveals no statistically significant differences across groups. These findings highlight the importance of psychological readiness and financial education in shaping financial behavior. Early exposure to financial norms and confidence in one’s financial ability contribute to improved personal financial decision-making.
Keywords:
Psychological Characteristics; Financial Socialization; Financial Literacy; Financial Behavior; Young Professionals
Recommended Citation
Amaranggana, Cening Cantya and Pramesti, Muthia, "From Traits to Behavior: How Psychological Characteristics and Financial Socialization Affect Personal Financial Management among Indonesia’s Young Professionals" (2026). International Conference on Business and Management Research (ICBMR). 6.
https://scholarhub.ui.ac.id/icbmr/2025/1/6
Included in
From Traits to Behavior: How Psychological Characteristics and Financial Socialization Affect Personal Financial Management among Indonesia’s Young Professionals
This This study investigates the influence of psychological characteristics and financial socialization on personal financial management behavior (PFMB) among young professionals in Indonesia, with financial literacy as a mediating variable. The psychological characteristics include attitude toward money, financial self-efficacy, and financial risk tolerance. Financial socialization is measured through parental direct teaching and exposure to peers and media. Data were collected from 209 respondents using a structured online questionnaire and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) in SmartPLS 4. The results show that all three psychological characteristics and both financial socialization variables significantly influence PFMB. Financial literacy mediates the relationship between attitude toward money and financial self-efficacy with PFMB, as well as the relationship between both socialization agents and PFMB. However, financial literacy does not mediate the effect of financial risk tolerance. Multi-group analysis based on gender reveals no statistically significant differences across groups. These findings highlight the importance of psychological readiness and financial education in shaping financial behavior. Early exposure to financial norms and confidence in one’s financial ability contribute to improved personal financial decision-making.