Multigeneration Perspective on Financial Literacy in Indonesia: A Conceptual Model

Abstract

Indonesia's economic growth is increasing along with financial literacy index and number of financial crimes such as fraud and abuse of authority in financial management. Investment as one of the components of financial management leads to another interesting fact, namely, demographic shifting of investors recorded by capital market trading institutions in Indonesia with more than 40% of single investors coming from the millennial generation with range of age 21-30 years. This is an indication of a shift in perception of intergenerational financial management, so it is necessary to do deeper research based on this phenomenon with relevant model. Theory of planned behavior that focuses on individual motivation and abilities and socialization theory that explains the process of acquiring skills, knowledge, and attitudes that are relevant to consumers, can explain the perceptions of intergenerational views in financial literacy. Generation X and Y have different stereotype and motivation, it leads to certain behavior of financial intention. This study aims to provide a conceptual model to understand behavioral intention of Gen X and Gen Y towards financial literacy.