Contribution of Financial Experience in improving the financial well-being of the Surabaya society : the role of financial behavior as a mediator
DOI:
https://doi.org/10.52909/jbemk.v4i2.186Keywords:
Financial Experience, Financial Behavior, Financial Well-BeingAbstract
Purpose: This study aims to examine the effect of financial experience on the financial well-being of Surabaya people. In this study, it also examines the role of financial behavior as mediating the relationship between financial experience and financial well-being. Methods: This study uses a causality design because it aims to explain the effect of exogenous variables on endogenous variables. This research is primary research because it uses primary data obtained by survey method. The sample size was one hundred and twenty-five people in Surabaya who were taken using purposive technique. To test the hypothesis, Partial Least Square was used by utilizing WarpPLS software. Results: The results found in this study are financial experience is proven to have a direct or indirect effect through financial behavior on financial well-being. It can be concluded that high financial experience will improve financial well-being. Another result obtained is that financial behavior is able to partially mediate the effect of financial experience on financial well-being.
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