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Maria Maria
State Polytechnic of Kupang
Economics, Econometrics & Finance

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THE EFFECT OF MATERIALISM AND FRUGALITY ON OVER-INDEBTEDNESS. THE MODERATING ROLE OF FINANCIAL LITERACY Maria Maria
Jurnal Ekonomi Vol. 12 No. 02 (2023): Jurnal Ekonomi, Perode April - Juni 2023
Publisher : SEAN Institute

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Abstract

The present study’ objective was to inspect the impact of materialism and frugality toward over-indebtedness as moderated by financial literacy. Data were gained from employees in a major city in Indonesia. Through a quantitative approach, a Structural Equation Modelling analysis was conducted to draw conclusions. The results suggest that financial literacy moderated the relationship between materialism and over-indebtedness, as well as the link between frugality and over-indebtedness. The practical benefits obtained can be used by managers in general to improve employee welfare by avoiding over-indebtedness.
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