UNDERSTANDING INVESTORS' FINANCIAL MANAGEMENT BEHAVIOR: THE ROLES OF FINANCIAL LITERACY AND FINANCIAL SOCIALIZATION IN GREATER BEKASI, INDONESIA

Abstract

Financial intelligence refers to an individual's ability to effectively manage financial resources and is considered an important indicator of financial success. Effective financial management enables individuals to maximize the value of their financial resources and reduce the risk of future financial difficulties. This study aims to examine the effects of financial literacy and financial socialization on the financial management behavior of investors in the Greater Bekasi area. A quantitative research approach was employed, using primary data collected through questionnaires distributed to 100 investors in the Greater Bekasi area. The data were analyzed using the Structural Equation Modeling (SEM) approach with SmartPLS software, including the assessment of both the measurement model (outer model) and the structural model (inner model). The findings reveal that financial literacy has a significant positive effect on financial management behavior (p = 0.000). Financial socialization also demonstrates a positive influence on financial management behavior, although the level of significance is lower (p = 0.093). These findings highlight the importance of financial literacy and financial socialization in shaping investors' financial management behavior.