IJRR

International Journal of Research and Review

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Research Paper

Year: 2023 | Month: January | Volume: 10 | Issue: 1 | Pages: 144-159

DOI: https://doi.org/10.52403/ijrr.20230115

The Impact of Income and Financial Knowledge on Personal Financial Management Behavior in Millennials Shipping Companies in Medan with Locus of Control as An Intervening Variable

Alsy Theresia Sinaga1, Khaira Amalia Fachrudin2, Nisrul Irawati3

1Postgraduate Students, Department of Management, Faculty of Economics and Business at University of Sumatera Utara, Indonesia
2,3Postgraduate Lecturer, Department of Management, Faculty of Economics and Business at University of Sumatera Utara, Indonesia

Corresponding Author: Alsy Theresia Sinaga

ABSTRACT

Millennials were born in an age that has easy access to financial institutions such as banking, leasing and other financial institutions. Because of this convenience, sometimes the millennial generation does not manage finances properly. The purpose of this study is to determine whether income and financial knowledge have a positive and significant effect on personal financial management behavior through locus of control in the Millennial generation in shipping companies in Medan. The study was conducted on employees / employees who fall into the category of Millennial generation of employees in Medan shipping company. The population in this study, the Millennial generation in shipping companies in Medan amounted to 96 people. The sample was 77 people. Data collection is done through the distribution of questionnaires or questionnaires to respondents in the study and the data is processed using PLS model evaluation which consists of two stages: evaluation of the outer model and the evaluation of the inner model. The results showed that Financial knowledge has a positive and significant effect on personal financial management behavior through locus of control in the Millennial generation of shipping companies in Medan, while Income has no significant and positive effect on personal financial management behavior through locus of control in the Millennial generation of shipping companies in Medan.

Keywords: Income, Personal Management, Locus of Control, Personal Financial Management Behavior.

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