Relationship between Financial Knowledge, Financial Attitude and Financial Skills and Millennial Investment Decisions

Puji Astuti, Poppy Laksita Rini, Muhammad Ali Fikri


Investment as an activity to put capital into an object, institution or party for future benefits is currently important. However, lack of understanding on the basic concepts of investment by the millennial causes many inappropriate financial decisions. Without a proper basic understanding, they may not know the right time to prepare emergency fund. The purpose of this study was to determine the relationship between financial knowledge, financial attitudes and financial skills on investment decisions of the millennials. The method used in this research is a quantitative method in which analysis was based on statistical procedures using the SmartPls. The samples were the students of FEB Ahmad Dahlan University to whom the questionnaires were distributed. The number of samples was determined by considering the population that is homogeneous. The tool for analytical test was Smart PLS v.3.3.9 with the SEM (Structural Equation Modeling) as the analysis method. The results show that financial knowledge has no significant effect.


financial attitude; financial knowledge; financial skills; millennial; investment decisions; SmartPls

Full Text:



Alkaraan, F., & Northcott, D. (2017). Strategic investment decision making: Effects of pre-decision control mechanisms. Qualitative Research in Accounting & Management, 4(2), 133–150.

B. Rahardjo, Budi; Khairul, IAKS (2019). The Influence of Financial Technology (Fintech) on the Development of SMEs in Magelang City. Proceedings of the National Seminar and Call for Papers, Faculty of Economics, Tidar University, 347–356.

Dewi, VI, Febrian, E., Effendi, N., Anwar, M., & Nidar, SR (2020). Financial literacy and its variables: Evidence from Indonesia. Economics and Sociology, 13(3), 133-154.

Leong, K. (2018). FinTech (Financial Technology): What is it and how to Use Technology to Create Business Value the Fintech Way? International Journal of Innovation, Management and Technology, 9(2), 74-78.

Maqsood Ahmad Sandhu, Ahm Shamsuzzoha, PH (2018). Investation decision. In the Electronic Library (Vol. 34, Issue 1).

Zkoçak, G. (2021). Impact of Behavioral Economics on Investment Decisions. Journal of Management and Finance, 10(1), 121.

Rambe, N. (2018). The Effect of Financial Attitude, Financial Knowledge, Parents' Education And Parent's Income On The Behavior Of Financial Management In North Sumatra University Students. Journal of Urban & Regional Development, 1(3), 82–91.

Simões, L., & Gouveia, LB (2018). Millennial Generation Consumer Behavior. Jornadas de Publicidade e Comunicaçao III, June.

Vidyattama, Y. (2017). Financial Development, Investment and Economic Growth. LPEM University of Indonesia, 1, 37–49.

Widoatmodjo, S., & Onasie, V. (2021). Gender and Millennials in the Indonesian Capital Market. Proceedings of the Ninth International Conference on Entrepreneurship and Business Management (ICEBM 2020), 174 (Icebm 2020), 400–407.

Yalcin, KC, Tatoglu, E., & Zaim, S. (2016). Kybernetes Information article: Developing an Instrument to Measure the Effect of Heuristics on Investment Decisions. Kybernetes, 45 (Behavioral Finance), 1052–1071.



  • There are currently no refbacks.

Copyright (c) 2022 Journal of Management and Business Environment (JMBE)

View My Stats | Journal of Management and Business Environment (JMBE) | e-ISSN: 2685-5992