Understanding Financial Behavior among Millenials in Dumai City: The Role of Digital Payments, Financial Literacy, and Self-Control
Keywords:
Digital Payments, Financial Literacy, Self-Control, Financial Behavior, MillennialsAbstract
Research aims:
The development of digital financial technology has driven changes in people's behavior in conducting financial transactions, particularly through the use of digital payments. Millennials, as the group most adaptable to digital technology, are the primary users of cashless payment services. This study aims to analyze the influence of digital payment usage, financial literacy, and self-control on the financial behavior of millennials in Dumai City.
Design/Methodology/Approach:
This study uses a quantitative approach with a survey method. The sample size in this study was 216 respondents selected using purposive sampling, with the criteria being millennials who actively use digital payment services. The research data was analyzed using SPSS V. 25 through descriptive statistical analysis, classical assumption testing, and multiple linear regression analysis.
Research findings:
The results show that the use of digital payments, financial literacy, and self-control have a positive and significant effect on the financial behavior of millennials. Simultaneously, these three independent variables explain 65.0% of the variation in financial behavior, while the rest is influenced by other factors outside the research model. These findings indicate that financial behavior is influenced by a combination of technological factors, financial knowledge, and individual psychological aspects.
Theoretical Contribution/Originality:
The theoretical ontribution of this study lies in strengthening behavioral finance studies by integrating the factors of digital financial technology, financial literacy, and self-control into a single analysis model. This study makes a new contribution by testing these three variables simultaneously in the context of the millennial generation at the regional level, which is still relatively limited in the literature on finance and consumer behavior.
Practical/Policy/Social Implications:
The findings of this study indicate that improving the financial behavior of the millennial generation depends not only on the adoption of digital payment technology, but also on the level of financial literacy and self-control. Therefore, local governments, financial institutions, and digital payment service providers need to design financial literacy education programs, encourage the wise use of digital payments, and strengthen awareness of self-control in transactions in the digital era.
Research Limitations/Implications:
This study has limitations in terms of its scope, which focuses only on the city of Dumai, and its use of limited variables, namely digital payment, financial literacy, and self-control. Future studies are recommended to expand the scope of research, increase the number of respondents, and include other variables such as income, lifestyle, and social environment in order to gain a more comprehensive understanding of financial behavior.
References
Amanah, E., Iradianty, A., & Rahardian, D. (2016). The influence of financial knowledge, financial attitude and external locus of control on personal financial management behavior. Journal of Business and Finance, 1(1), 1–12.
Baumeister, R. F. (2002). Yielding to temptation: Self-control failure, impulsive purchasing, and consumer behavior. Journal of Consumer Research, 28(4), 670–676. https://doi.org/10.1086/338209
Baumeister, R. F., Vohs, K. D., & Tice, D. M. (2007). The strength model of self-control. Current Directions in Psychological Science, 16(6), 351–355. https://doi.org/10.1111/j.1467-8721.2007.00534.x
Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Quarterly, 13(3), 319–340. https://doi.org/10.2307/249008
Dew, J., & Xiao, J. J. (2011). The financial management behavior scale: Development and validation. Journal of Financial Counseling and Planning, 22(1), 43–59.
Ghozali, I. (2018). Aplikasi analisis multivariate dengan program IBM SPSS 25. Semarang: Badan Penerbit Universitas Diponegoro.
Herdjiono, I., & Damanik, L. A. (2016). Pengaruh financial attitude, financial knowledge, parental income terhadap financial management behavior. Jurnal Manajemen Teori dan Terapan, 9(3), 226–241.
Kim, J., & Chatterjee, S. (2013). Childhood financial socialization and young adults’ financial management. Journal of Financial Counseling and Planning, 24(1), 61–79.
Lusardi, A., & Mitchell, O. S. (2014). The economic importance of financial literacy: Theory and evidence. Journal of Economic Literature, 52(1), 5–44. https://doi.org/10.1257/jel.52.1.5
Otoritas Jasa Keuangan (OJK). (2022). Survei nasional literasi dan inklusi keuangan Indonesia. Jakarta: OJK.
Putri, N. M. D. R., & Rahyuda, H. (2017). Pengaruh tingkat literasi keuangan terhadap perilaku keuangan individu. E-Jurnal Manajemen Universitas Udayana, 6(6), 3407–3434.
Putriasih, N. K., & Yasa, N. N. K. (2022). Self-control and financial management behavior of university students. International Journal of Social Science and Business, 6(2), 223–231.
Rachmawati, N., & Nuryana, I. (2020). The effect of digital payment usage on consumptive behavior. Journal of Economics and Business, 23(2), 123–134.
Sari, R. P., & Kautsar, A. (2021). Financial literacy, digital payment usage, and financial behavior among young adults. Journal of Asian Finance, Economics and Business, 8(12), 201–210. https://doi.org/10.13106/jafeb.2021.vol8.no12.0201
Setiawan, I. M. D., & Suci, N. M. (2025). The effect of self-control and social environment on students’ financial behavior. Jurnal Pendidikan Ekonomi, 13(1), 45–56.
Tangney, J. P., Baumeister, R. F., & Boone, A. L. (2004). High self-control predicts good adjustment, less pathology, better grades, and interpersonal success. Journal of Personality, 72(2), 271–324. https://doi.org/10.1111/j.0022-3506.2004.00263.x
Thaler, R. H. (2016). Behavioral economics: Past, present, and future. American Economic Review, 106(7), 1577–1600. https://doi.org/10.1257/aer.106.7.1577
Yoo, B., & Kim, J. (2016). Digital payment systems and consumer behavior. International Journal of Electronic Commerce, 20(3), 345–370. https://doi.org/10.1080/10864415.2016.1121761
Xiao, J. J., & O’Neill, B. (2016). Consumer financial education and financial capability. International Journal of Consumer Studies, 40(6), 712–721. https://doi.org/10.1111/ijcs.12285
