UIJRT » United International Journal for Research & Technology

The Influence of Financial Socialization on Financial Literacy About Stock Investment in the Millennial Generation

Total Views / Downloads: 283 

Cite ➜

Loebiantoro, I.Y., Eaw, H.C. and Annuar, N., 2021. The Influence of Financial Socialization on Financial Literacy About Stock Investment in the Millennial Generation. United International Journal for Research & Technology (UIJRT), 3(2), pp.92-97.


Based on data from the Financial Services Authority (OJK), the number of investors investing in the capital market is still relatively low when compared to the total population of Indonesia. The low interest in investing in the capital market is caused by a lack of financial literacy in investment instruments in the capital market. Financial literacy can be improved through Financial Socialization conducted by Socialization Agents consisting of family, peers, formal education, and the media. The object of this research is the millennial generation, because investing in stocks, has a relatively high risk, so it is estimated that the age that is resistant to anticipating high risk is the age of the millennial generation. The purpose of this research is to find out which socialization agent has the biggest role in the process of financial literacy. This research is quantitative research using primary data whose data is obtained by conducting a survey. This research found that media is the most influential agent of financial socialization on financial literacy in the millennial generation. The logical explanation is that the accessibility of media and the familiarity of internet-based media and social media for the millennial generation.

Keywords: Agents of Financial Socialization, Financial Literacy, Financial Socialization.


  1. Ahluwalia, A. K., & Sanan, P. (2016). Consumer awareness and consumer activism among adolescents: A socialization perspective. IUP Journal of Marketing Management, 15(1), 49-73.
  2. Ameliawati, M., and Setiyani, R. (2018). The Influence of Financial Attitude, Financial Socialization, and Financial Experience to Financial Management Behavior with Financial Literacy as the Mediation Variable. Conference Paper International Conference on Economics, Business and Economic Education vol. 2018.
  3. Barber, N. A. (2013). Investigating the potential influence of the internet as a new socialization agent in context with other traditional socialization agents. Journal of Marketing Theory & Practice, 21(2), 179-194.
  4. Chowa, G.A. and Despard, M.R. (2014), “Testing a measurement model of financial capability among youth in Ghana”, Journal of Consumer Affairs, Vol. 48 No. 2, pp. 301-322.
  5. Danes, S.M. & Dunrud, T. (1993). Children and Money: Teaching Children Money Habits for Life. Minnesota Extension Service Publication, HE-FO-6116, University of Minnesota.
  6. Danes, S. M. (1994). Parental perceptions of children’s financial socialization. Journal of Financial Counseling and Planning, 5, 127-149.
  7. Danes, S. M., & Haberman, H. R. (2007). Teen financial knowledge, self-efficacy, and behavior: A gendered view. Journal of Financial Counseling & Planning, 18(2), 48-60.
  8. Drever, A.I.; White, E.I.: Kalish, C.W.; Quest, N.M.; Hoagland, E.M.; Nelms, E.N. (2015). Foundations of Financial Well-Being: Insights into the Role of Executive Function, Financial Socialization, and Experience-Based Learning in Childhood and Youth, The Journal of Consumer Affairs, 13–38.
  9. Gudmunson, C. G., & Danes, S. M. (2011). Family financial socialization: Theory and critical review. Journal of Family and Economic Issues, 32(4), 644-667.
  10. Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2018). Multivariate Data Analysis (8th ed.). United Kingdom: Cengage Learning.
  11. Hira, T. K., Sabri, M. F., & Loibl, C. (2013). Financial socialization’s impact on investment orientation and household net worth. International Journal of Consumer Studies, 37(1), 29-35.
  12. Hilgert M., Hogarth J. and Beverly S. (2003) Household Financial Management: The Connection Between Knowledge and Behavior. Federal Reserve Bulletin 89: 309–322.
  13. Lachance, M. (2014). Financial literacy and neighborhood effects. Journal of Consumer Affairs, 48(2), 251-273.
  14. Lusardi, A. and Tufano, P. (2009), “Debt literacy, financial experiences, and overindebtedness”, NBER Working Paper No. 14808, pp. 1-44.
  15. Lusardi, A., Mitchell, O.S. and Curto, V. (2010), “Financial literacy among the young”, Journal of Consumer Affairs, Vol. 44 No. 2, pp. 358-380.
  16. Lusardi, A., & Mitchell, O. S. (2014). The economic importance of financial literacy: Theory and evidence. Journal of Economic Literature, 52(1), 5-44.
  17. Mandell, L. (2007), “Financial literacy of high school students”, in Xiao, J.J. (Ed.), Handbook of Consumer Finance Research, Springer, New York, NY, pp. 163-183.
  18. OECD (2014), “PISA 2012 technical background”, in OECD (Ed.), PISA 2012 Results: Students and Money: Financial Literacy Skills for the 21st Century, Vol. VI, OECD Publishing, Paris, pp. 123-145.
  19. Putri, B. K., & Djuminah. (2016). Peran Agen Sosialisasi Finansial, Pengalaman Finansial dan Perilaku Terhadap Uang Dalam Membentuk Literasi Finansial Pada Mahasiswa. Artikel Ilmiah, (1), 1–15.
  20. Remund, D. L. (2010). Financial literacy explicated: The case for a clearer definition in an increasingly complex economy. Journal of Consumer Affairs, 44(2), 276-295.
  21. Shim, S., Barber, B.L., Card, N.A., Xiao, J.J. and Serido, J. (2010), “Financial socialization of first-year college students: the roles of parents, work, and education”, Journal of Youth and Adolescence, Vol. 39 No. 12, pp. 1457-1470.
  22. Sohn, S., Joo, S., Grable, J. E., Lee, S., & Kim, M. (2012). Adolescents’ financial literacy: The role of financial socialization agents, financial experiences, and money attitudes in shaping financial literacy among South Korean youth. Journal of Adolescence, 35, 2005–2007.
  23. Tang, N. (2017), “Like father like son: how does parents’ financial behavior affect their children’s financial behavior?”, Journal of Consumer Affairs, Vol. 51 No. 2, pp. 284-311.

For Conference & Paper Publication​

UIJRT Publication - International Journal