FINANCIAL LITERACY AND DEMOGRAPHY CHARACTERISTICS AMONG INDONESIAN MILLENIALS

摘要

Millennials whom we define as aged 22 to 38 in 2018 are expected to be the largest labour force in Indonesia. Despite the fact that the country will reach its productive peak by 2020, the result of national financial literacy survey conducted by OJK show that around 75.69% percent of the population do not have a complete grasp on financial products and services. Ample of research show that a financially illiterate society can create problems to the countries' economy since it may lead to poverty and greater income inequality. This study is conducted to investigate the level of financial literacy, as well as to examine the relationship between financial literacy and demographic factors among Indonesian millennials. We distributed questionnaires to 446 millennials and found that on average the level of financial literacy of Indonesian millennials fell in the fair category. Our result also indicates that millennials who possess Bachelor's Degree or higher, are enrolled in Economics or Business major, and have longer working experiences and receive financial education (formal/informal), appear to have significantly higher level of financial literacy compared to the students with lower level of education, enrolled in courses other than Economics or Business, having no working experience and any exposure to financial education.