Behavioural biases in Personal Financial Management and Perceived Financial Satisfaction: The Role of Speculative Risk

This study is design to examine the impact of behavioural biases on perceived financial satisfaction and determined the role of Speculative Risk between these variables. Using structured questionnaire study collect the data from respondents and then analyzed the same by using Reliability Analysis, Factor Analysis and Structural Equation Modeling (SEM) with the help of SPSS and AMOS. The result of study disclosed that Financial self-efficacy and Reliance on expert has significant effect on financial satisfaction, while financial socialization has no significant effect on financial satisfaction. Beside this, study revealed that Speculative risk partially mediate the relationship of financial self-efficacy and reliance on experts with financial satisfaction. Beside this , moderating role of speculative risk was observed between IV’s and DV’s .Study revealed that speculative risk significantly moderates the relationship of financial socialization and Financial satisfaction. This study is important for financial managers, policy makers and individual investors.

Transformation electronic payment system as predictor on financial satisfaction

Digitalization in Indonesia has entered a new phase, the development of technology that makes several services run more efficiently and more flexible. Digital services that are quite complex are financial services such as electronic payment systems. Currently, the payment system is able to increase the overall satisfaction of the individual. This study examines the role of using an electronic payment system and the determinants of individual financial satisfaction as a whole. This study uses structural equation modeling (SEM) to test hypotheses regarding financial satisfaction. The results of this study prove that financial capability is able to increase financial satisfaction. However, different results show that the use of an electronic payment system does not affect financial satisfaction. This finding can expand the literature review on digital awareness, satisfaction and behavior in addressing individual financial satisfaction.

Pengaruh Income, Debt, Gender Differences, Financial Literacy, dan Financial Attitude terhadap Financial Satisfaction

This study examines the financial satisfaction among the employees in the District of Sidoarjo, as well as to analyze the relationship between income, debt, gender differences, financial literacy, and financial attitude. The object of this research is the employees in the District of Sidoarjo and techniques of data collection using the technique of purposive sampling and snowball sampling. Total respondents obtained is 298 by distributing questionnaires online. This research is conclusive causality and using the analysis technique of Structural Equation Modeling (SEM) in AMOS software version 24. The results of this study showed that the debt and financial attitude have a significant effect on financial satisfaction, while the variable income, gender differences and financial literacy does not affect the financial satisfaction. This study can be a useful reference for a variety of parties, especially labour/employees/employee where you should always act and behave better in financial terms, because the attitude towards finance plays an important role to determine the success or failure of the financial behavior of individuals. The high attitude of the individual financial can determine the high awareness in responsible for the expenditure of finances, so it will cause a positive impact on the behavior of financial management to achieve the satisfaction of personal finance.

Analisis hubungan antara literasi keuangan, perilaku keuangan, dan kepuasan keuangan

The purpose of this research is to investigate causal relationship between financial literacy and financial behavior, financial behavior and financial satisfaction, and between financial literacy and financial satisfaction. The analysis technique used was Granger Causality analysis. The research data was obtained using questionnaire distributed to 100 respondents. The repondents are Indonesian citizens in productive age (15-64 years). The results show a one-way causality between financial literacy and financial behavior, between financial behavior and financial satisfaction, but there is no causality relationship (independence) between financial literacy and financial satisfaction. Abstrak Penelitian ini bertujuan untuk mengetahui hubungan sebab akibat dari literasi finansial dan perilaku finansial, perilaku finansial dan kepuasan finansial, serta antara literasi finansial dan kepuasan finansial. Teknik analisis yang digunakan adalah analisa Granger Causality. Data dikumpulkan dengan menggunakn kuesioner yang dibagikan kepada 100 responden. Para responden adalah warga Indonesia berusia produktif (15-64) tahun. Hasil yang didapatkan menunjukkan adanya hubungan sebab akibat antara literasi finansial dengan perilaku financial, serta antara perilaku finansial dankepuasan finansial. Sementara hubungan antar literasi finansial dan kepuasan finansial tidak ditemukan.

The Influence Of Financial Stressors, Financial Behavior, Risk Tolerance, Financial Solvency, And Financial Knowledge On Financial Satisfaction Of Working Age Population

Financial satisfaction is the ultimate goal of individuals who work hard and manage their finance. Working-age is the time when individuals are considered able to work and earn, yet they tend to fail to meet the expected financial satisfaction due to several factors. This research aims to test the influence of financial stressors, financial behavior, risk tolerance, financial solvency, financial knowledge on financial satisfaction. This research includes all important variables (financial stressors, risk tolerance, and financial solvency) that can determine financial satisfaction. The participants in this research were 100 respondents, selected by convenience sampling, from the working-age population in Jakarta, the capital city of Indonesia, who gave the biggest contribution to the economy. The data were analyzed by using multiple linear regression analysis. The findings show that financial stressors, financial behavior, risk tolerance, financial solvency, and financial knowledge simultaneously had a significant influence on financial satisfaction. Partially, only risk tolerance and financial knowledge variables affect financial satisfaction. The findings imply that the working-age population should manage financial stressors, financial behavior, risk tolerance, financial solvency, and financial knowledge properly to improve financial satisfaction reflecting financial welfare.

Retirement Financial Planing and Life Satisfaction

Retirement has been considered as a major transition in one’s life. Financial security in retirement is a major concern for many Americans. Evidence has shown that being financially prepared for retirement could has a significant, positive impact on one’s life satisfaction. Employing data from the 2012 and 2018 National Financial Capability Study (N=1023), this study analyzes the relationship between participants’ retirement planning in 2012 and their financial satisfaction in 2018. An Ordinary Least Squares regression is used in the current study. This study found relatively low retirement preparedness levels (retirement planning, retirement saving, retirement plan: employer-based or individually held, investment) among the participants in 2012. Based on the descriptive results, adults closest to retirement (ages 55 to 64) are more likely to be planning compared to the other groups, as are adults who were married, highly educated, males, and white. According to the liner regression results, this study found that adults who had a retirement savings goal, had a retirement plan (employer-based or individually held), made regular contributions to retirement plans, and owned investments in 2012 are more likely to be satisfied with their personal financial condition in 2018. As expected, individuals with higher incomes, larger net worth, and those who are older are significantly more likely to be financial satisfied. However, even after controlling for these variables, results show that planning does indeed impact the level of financial satisfaction. Our findings highlight the importance of policies and programs to support Americans with retirement planning.

The Influence of Marital Status and Gender on Financial Well-Being

Research consistently documents gender differences in financial status in later life, and some also examine marital status in this regard. However, the subjective aspects of financial well-being are less well-explored, especially as this relates to both gender and marital status in the U.S. Using a gender-sensitive approach, this study examines the extent to which gender and marital status affect the financial well-being of older American adults. Different from previous studies that use only objective measures of financial well-being, this study also takes a subjective assessment in terms of financial satisfaction into account so that the role of marital status and gender in both objective measures and subjective assessments can be identified. This study uses the 2014 Health and Retirement Study and employs ordinary least squares regressions and ordinal logistic regression analyses. Examining those aged 65 and over, the sample varies from N=10,325 (financial well-being) to 4,280 (financial satisfaction). Differences in gender and marital statuses across all objective measures of financial well-being show up, with women being disadvantaged while the married (regardless of gender) being advantaged. Concerning financial satisfaction, being divorced and separated were negatively related to financial satisfaction for both men and women. These findings indicate that both marital status and gender are important indicators of financial well-being in later life.

Life Satisfaction and Tax Morale in Azerbaijan: Mediating Role of Institutional Trust and Financial Satisfaction

This paper examines the relationship between life satisfaction (measured as the self-reported satisfaction of each individual with their past life and goal achievements) and tax morale (measured as the likelihood of an individual’s intrinsic motivation to pay taxes). Using a large-scale survey dataset from Azerbaijan, it is documented that life satisfaction is positively associated with tax morale. Life satisfaction plays a significant role in increasing tax compliance practices. It is also important to note that there is a positive mediating effect of life satisfaction on tax morale through financial satisfaction and institutional trust. In line with our hypotheses, the results of a series of analyses remain robust to different models. These results imply that a higher level of life satisfaction may increase the proportion of individuals who report the highest tax morale in Azerbaijan. Our findings have policy implications for Azerbaijan and other governments aiming to alleviate high levels of tax evasion.

Mediators of Differences Between Employed and Unemployed in Life Satisfaction and Emotional Well-being

Previous research has shown that the unemployed has lower life satisfaction than the employed but that their emotional well-being may not differ. The aim is to investigate the role of mediators with bearings on these differences between the employed and unemployed in emotional well-being compared to life satisfaction. Participants were 3,463 employed and 452 unemployed living in five Western countries. They answered questions in an online survey. The results showed that the employed had both higher life satisfaction and emotional well-being. Mediation analysis replicated previous results in that the relationship between unemployment and life satisfaction was mediated by financial satisfaction. The relationship with emotional well-being was mediated by satisfaction with time use which was higher for the employed than the unemployed. Financial satisfaction was also a mediator of the relationship with emotional well-being, both directly and through satisfaction with time use. Although the unemployed felt lower time pressure than the employed, this factor was not a strong mediator of the relationship with emotional well-being, neither directly nor through satisfaction with time use. A possible explanation for the differences in the results for emotional well-being is that a negative mood is less associated with work than found in previous research.