Determinant Factors of Financial Management Behavior Among People in Jakarta During COVID-19 Pandemic

The purpose of this research is to analyze the influence of Financial Knowledge, Financial Attitudes, and Financial Literacy on Financial Management Behavior for the people in Jakarta during COVID-19 pandemic.. During the pandemic, many business activities have been exposed to tight restriction by the government, hence the purchasing power of people will be decreased. To examine the alternative hypothesis, this research uses the Structural Equation Modeling (SEM) with the Smart PLS. The research sample was collected by using an online Google Form Questionnaire with a purposive non-probability sampling type with a total of 185 respondents. The result of this research indicates that Financial Knowledge, Financial Attitudes, and mainly Financial Literacy have significant influences on Financial Management Behavior. Therefore, it can be concluded that the financial management behavior based on Theory of Planned Behavior (TPB) by Ajzen & Fishbein remains consistent during COVID-19 pandemic. This research has contributed that in the COVID-19 pandemic, the purchasing power of people will not decrease evidently. Overall, this research suggests that every person should behave financially well and wise in managing their finances, investment, and business activities. With the increase of financial literacy of people during COVID-19 pandemic as Deficit Spending Units (DSUs), then its counterpart in Financial System i.e. Surplus Income Units (SIUs) will also work effectively.