Mitigating Personal Financial Distress: The Role of Religiosity and Financial Literacy

Millennials tend to face personal financial distress due to sandwich generation problem. Personal financial distress is one of issues in personal financial management. It can bring many problems to another aspect in personal life. Therefore, it’s important for people to mitigate that issue and reach personal financial goals. Personal financial distress is condition when individual is unable to fulfill a financial needs. This condition can be influenced by religiosity and financial literacy. Religiosity and financial literacy could explain a spending behaviour and how to use money. This study aims to test the influence of religiosity and financial literacy on personal financial distress. Using online survey targeting millennial generation in Indonesia, this study find that religiosity have negative significant impact on personal financial distress and financial literacy play a role as moderating variable that weaken relationship between religiosity and financial distress. In conclusion, mitigating personal financial distress could be implemented in several ways. Personal financial distress could be avoided by higher religiosity and financial literacy