JEFMS Journal

ABSTRACT:

The purpose of this study is to determine the effect of financial literacy on investment decision-making in the capital market for Indonesia’s millennial generation. Investment instruments available on the capital market have a relatively higher risk compared to conventional investment instruments, such as deposits on the money market, where to invest in the capital market investors must believe that they understand the transaction mechanism and are ready to assume the risks of investing in the capital market. Financial literacy is defined by financial knowledge, financial awareness, and financial attitudes. A person's comprehension or familiarity with financial topics is referred to as financial knowledge. Financial awareness is the knowledge of one's own finances and the ability to manage their money to prevent financial issues. Financial decision-making is also based on the application of financial principles, or financial attitude.
A Google Form survey that was disseminated via social media to the millennial generation in Jabodetabek - Indonesia was used to collect the data for this study. Using the purposive sampling technique, 164 respondents made up the samples. PLS- SEM analysis is the analytical technique employed. The results of the study show that financial knowledge, financial awareness, and financial attitude have a positive effect on investment decisions. Other than that, family influence moderates the influence of financial knowledge on investment decisions. However, family influence doesn’t moderate the effect of financial awareness and financial attitudes on investment decisions.

KEYWORDS:

Financial Knowledge, Financial Awareness, Financial Attitude, Investment Decision, Family Influence

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