Financial Literacy and Risky Credit Behavior: The Mediating Role of Financial Stress in PayLater Usage
Keywords:
financial literacy, financial stress, generation Z, risky credit behavior, paylater userAbstract
Purpose: The objective of this study is to investigate the influence of financial literacy on risky credit behavior among Generation Z in Surabaya, specifically on the utilization of the PayLater feature. The study also examines the function of financial stress as a mediator variable between financial literacy and high-risk credit behavior.
Method: The research population comprises Generation Z as colleges student of four universities in Surabaya, who have utilized PayLater services. Seven hypotheses were tested using Partial Least Square software.
Findings: The results indicate that neither subjective nor objective financial literacy significantly influences risky credit behavior. Objective financial literacy exerts a substantial negative influence, whereas financial stress has a considerable beneficial impact on risky credit behavior. Furthermore, financial self-efficacy solely mediates the connection between objective financial literacy and high-risk credit behavior.
Novelty: This study offers novel insights into the influence of financial literacy and financial stress on the credit behavior of Generation Z, emphasizing the significance of financial self-efficacy as a partial mediator. The results provide actionable insights for financial education and risk management approaches in digital financial services.
References
Aisjah, S. (2024). Intention to use buy-now-pay-later payment system among university students: a combination of financial parenting, financial self-efficacy, and social media intensity. Cogent Social Sciences, 10(1). https://doi.org/10.1080/23311886.2024.2306705
Ajzen, I. (1991). The theory of planned behavior. Organizational Behavior and Human Decision Processes. In Disability, CBR and Inclusive Development (Vol. 33, Issue 1).
Ajzen, I. (2020). The theory of planned behavior: Frequently asked questions. Human Behavior and Emerging Technologies, 2(4). https://doi.org/10.1002/hbe2.195
Andarsari, P. R., & Ningtyas, M. N. (2019). The Role of Financial Literacy on Financial Behavior. JABE (Journal of Accounting And Business Education), 4(1). https://doi.org/10.26675/jabe.v4i1.8524
Aren, S., & Hamamci, H. N. (2022). The Moderating Effect of Subjective Financial Literacy on the Relationship between Coping Strategies and Financial Risk Tolerance. International Journal of Social Sciences Perspectives, 12(1). https://doi.org/10.33094/ijssp.v12i1.733
Arman, A., Masrullah, M., Agustan, A., Firmansyah, F., & Aditya, R. (2023). Financial Literacy and Assistance in Compiling Independent Financial Reports Using Expense IQ Money Manager. Technium Sustainability, 4. https://doi.org/10.47577/sustainability.v4i.9476
Barbić, D., Palić, I., & Lučić, A. (2023). Exploring the impact of family stressors on financial behavior: A study of Croatian youth. Croatian Review of Economic, Business and Social Statistics, 9(1). https://doi.org/10.2478/crebss-2023-0004
Barghouthi, O. A., & Islam, K. M. A. (2020). Financial Stability Implications of Stress Testing for Risk Taking and Credit Growth. American Finance & Banking Review, 5(2). https://doi.org/10.46281/amfbr.v5i2.778
Bashir, I., & Qureshi, I. (2023). Financial Well-Being and Financial Stress: Examining the Moderating Effect of Gender. Acta Universitatis Sapientiae, Economics and Business, 11(1), 1–17. https://doi.org/10.2478/auseb-2023-0001
Castellanos-Alvarenga, L. M., Denegri-Coria, M., & Sepúlveda-Aravena, J. (2022). Relationship between Subjective Financial Knowledge and Financial Well-Being: The Mediating Role of the Financial Executive Function. Revista de Cercetare Si Interventie Sociala, 78. https://doi.org/10.33788/rcis.78.9
Cupák, A., Fessler, P., Hsu, J. W., & Paradowski, P. R. (2020). Confidence, Financial Literacy and Investment in Risky Assets: Evidence from the Survey of Consumer Finances. Finance and Economics Discussion Series, 2020(004). https://doi.org/10.17016/feds.2020.004
Hakim, A. R. (2022). OJK Catat 51.000 Aduan soal Pinjol dan Investasi Ilegal Hingga Januari 2022. Merdeka.Com.
Heckman, S., Lim, H., & Montalto, C. (2014). Factors Related to Financial Stress among College Students. Journal of Financial Therapy, 5(1). https://doi.org/10.4148/1944-9771.1063
Heo, W., Cho, S. H., & Lee, P. (2020). APR Financial Stress Scale: Development and Validation of a Multidimensional Measurement. Journal of Financial Therapy, 11(1). https://doi.org/10.4148/1944-9771.1216
Herlambang, Y., & Rofii, M. S. (2022). Case Study of Illegal Online Fintech Lending (Fintech Lending) in Indonesia in Strategic Intelligence Perspective. Budapest International Research and Critics Institute-Journal (BIRCI-Journal), 5(1).
Ismail, A., & Rahim, N. A. (2021). Financial Well -Being and Job Satisfaction Among the Teachers of the Ministry of Education Malaysia (MOE). Global Journal Al-Thaqafah, 11(2). https://doi.org/10.7187/gjat122021-8
Ismail, N., & Amiruddin Zaki, N. D. (2019). Does Financial Literacy and Financial Stress Effect the Financial Wellness? International Journal of Modern Trends in Social Sciences. https://doi.org/10.35631/ijmtss.28001
Kholis, N., Mujib, A., & Maesaroh, I. (2022). Subjective Financial Well-Being Among Islamic Religious Teachers in Indonesia. International Journal of Economics and Finance Studies, 14(4). https://doi.org/10.34111/ijefs.20220115
Kumalasari, D., & Anwar, M. (2022). Financial Knowledge Moderating the Effect of Money Attitude on Personal Financial Management Behavior of Students. Economos: Jurnal Ekonomi Dan Bisnis, 5(3). https://doi.org/10.31850/economos.v5i3.2046
Kumar, S., & Nayak, J. K. (2024). Understanding the intricacies of risky indebtedness, impulse buying and perceived risk in buy-now-pay-later adoption. Asia Pacific Journal of Marketing and Logistics, 36(7). https://doi.org/10.1108/APJML-08-2023-0759
Liu, L., & Zhang, H. (2021). Financial literacy, self-efficacy and risky credit behavior among college students: Evidence from online consumer credit. Journal of Behavioral and Experimental Finance, 32. https://doi.org/10.1016/j.jbef.2021.100569
Putriani, S., & Apriani, R. (2022). Impacts Of Digital Technostress And Digital Technology Self-Efficacy On Intentions To Use Fintech In Indonesia. Jurnal Reviu Akuntansi Dan Keuangan, 12(1). https://doi.org/10.22219/jrak.v12i1.20801
Surya, N., & Evelyn, E. (2023). Pengaruh Literasi Keuangan dan Financial Self-Efficacy terhadap Risky Credit Behavior dalam Penggunaan PayLater. Jurnal Manajemen Dan Keuangan, 12(1). https://doi.org/10.33059/jmk.v12i1.5825
Susilowati, E., Joseph, C., Vendy, V., & Yuhertiana, I. (2022). Advancing SDGs No 16 via corporate governance disclosure: evidence from Indonesian and Malaysian FinTech companies’ websites. Sustainability, 14(21), 13869.
Wang, L., Jiang, S., Cheng, Y., & Zhou, Z. (2023). Extending the Link Between Family Financial Stress and Bullying Victimization of Children: A Moderated Mediation Model. Journal of School Violence, 22(3). https://doi.org/10.1080/15388220.2023.2186418
Yuhertiana, I. (2021). Implementasi Nilai-nilai Bela Negara dalam Akuntansi : Perspektif Akuntansi Keperilakuan.
Zakaria, M., Abd Razak, S. N. A., & Yusoff, M. S. A. (2016). The Theory of Planned Behavior as a Framework for Whistle-Blowing Intentions. Review of European Studies, 8(3). https://doi.org/10.5539/res.v8n3p221
Zhang, Y., & Chatterjee, S. (2023). Financial Well-Being in the United States: The Roles of Financial Literacy and Financial Stress. Sustainability (Switzerland), 15(5). https://doi.org/10.3390/su15054505
