Migration and Financial Well-being: The Impact of Acculturation and Financial Socialization with Mediating Role of Financial Behavior
Abstract
The dilemma of the large population of Indonesia being disproportionate to the number of jobs available in the country has resulted in international migration to achieve household financial well-being, and most immigrants 55% of immigrants migrate to Malaysia (World Bank, 2017). This study aims to measure whether acculturation and financial socialization influence financial well-being mediated by financial behavior among Indonesian immigrant housewives from South Sulawesi in Sabah, Malaysia. This research uses the Partial Least Square path modeling technique, and 384 respondents showed that acculturation and financial socialization significantly affected financial behavior. Financial behavior has a significant impact on financial well-being. In addition, financial behavior significantly mediates acculturation, financial socialization, and financial well-being. The results of this research can help the government and palm oil plantations to create policies and possible intervention programs to help Indonesian immigrants manage their financial behavior in order to achieve financial well-being through financial literacy programs, holding outreach to their workers to be careful in managing finances such as not getting caught up in online lending practices that are currently widespread, reducing consumptive shopping behavior non-essential, and facilitate pension programs not only for Malaysian citizens but also Indonesian citizens.
Keywords
Full Text:
PDFReferences
Arends-Tóth, J., & van de Vijver, F. J. R. (2009). Cultural differences in family, marital, and gender-role values among immigrants and majority members in the Netherlands. International Journal of Psychology, 44(3). https://doi.org/10.1080/00207590701545676
Barbić, D., Lučić, A., & Chen, J. M. (2019). Measuring responsible financial consumption behaviour. International Journal of Consumer Studies, 43(1). https://doi.org/10.1111/ijcs.12489
Berry, J. W. (2005). Acculturation: Living successfully in two cultures. International Journal of Intercultural Relations, 29(6 SPEC. ISS.). https://doi.org/10.1016/j.ijintrel.2005.07.013
Berry, J. W. (2008). Globalisation and acculturation. International Journal of Intercultural Relations, 32(4). https://doi.org/10.1016/j.ijintrel.2008.04.001
Berry, J. W., Phinney, J. S., Sam, D. L., & Vedder, P. (2006). Immigrant youth: Acculturation, identity, and adaptation. Applied Psychology, 55(3), 303–332. https://doi.org/10.1111/j.1464-0597.2006.00256.x
Bhandari, P. (2019). Rural Households’ Allocation of Remittance Income in Agriculture in Nepal. Global Journal of Agricultural and Allied Sciences, 1(1). https://doi.org/10.35251/gjaas.2019.001
Bornstein, M. H. (2019). Handbook of parenting: Biology and ecology of parenting. In Handbook of Parenting: Biology and Ecology of Parenting (Vol. 2). https://doi.org/10.4324/9780429401459
BPS. (2021). Analisis Mobilitas Tenaga Kerja Hasil SAKERNAS 2020. https://www.archive.bps.go.id/publication/2021/11/17/bf53c37506d4a38a2a700f5a/analisis-mobilitas-tenaga-kerja-hasil-survei-angkatan-kerja-nasional-2020.html
BPS. (2023). Statistik Indonesia 2023. https://www.archive.bps.go.id/publication/2023/02/28/18018f9896f09f03580a614b/statistik-indonesia-2023.html
BPS West Java Province. (2022). Booklet Survei Angkatan Kerja Nasional Provinsi Jawa Barat.
Britt, S. L., & Huston, S. J. (2012). The Role of Money Arguments in Marriage. Journal of Family and Economic Issues, 33(4). https://doi.org/10.1007/s10834-012-9304-5
Brobeck, S. (2008). Understanding the Emergency Savings Needs of Low-and Moderate-Income Households: A Survey-Based Analysis of Impacts, Causes, and Remedies. Washington, DC: Consumer Federation of America. Retrieved April, 23.
Brown, S., Taylor, K., & Wheatley Price, S. (2005). Debt and distress: Evaluating the psychological cost of credit. Journal of Economic Psychology, 26(5). https://doi.org/10.1016/j.joep.2005.01.002
Brüggen, E. C., Hogreve, J., Holmlund, M., Kabadayi, S., & Löfgren, M. (2017). Financial well-being: A conceptualization and research agenda. Journal of Business Research, 79. https://doi.org/10.1016/j.jbusres.2017.03.013
Çera, G., Khan, K. A., Mlouk, A., & Brabenec, T. (2021). Improving financial capability: the mediating role of financial behaviour. Economic Research-Ekonomska Istrazivanja , 34(1). https://doi.org/10.1080/1331677X.2020.1820362
Choudhary, S., Nayak, R., Kumari, S., & Choudhury, H. (2019). Analysing acculturation to sustainable food consumption behaviour in the social media through the lens of information diffusion. Technological Forecasting and Social Change, 145. https://doi.org/10.1016/j.techfore.2018.10.009
Cleveland, M., & Laroche, M. (2007). Acculturaton to the global consumer culture: Scale development and research paradigm. Journal of Business Research, 60(3). https://doi.org/10.1016/j.jbusres.2006.11.006
Cleveland, M., Laroche, M., Pons, F., & Kastoun, R. (2009). Acculturation and consumption: Textures of cultural adaptation. International Journal of Intercultural Relations, 33(3). https://doi.org/10.1016/j.ijintrel.2008.12.008
Coll, C. G., & Marks, A. K. (2012). The Immigrant Paradox in Children and Adolescents: Is Becoming American a Developmental Risk? American Psychological Association.
Curran, M. A., Parrott, E., Ahn, S. Y., Serido, J., & Shim, S. (2018). Young Adults’ Life Outcomes and Well-Being: Perceived Financial Socialization from Parents, the Romantic Partner, and Young Adults’ Own Financial Behaviors. Journal of Family and Economic Issues, 39(3). https://doi.org/10.1007/s10834-018-9572-9
Dew, J., Britt, S., & Huston, S. (2012). Examining the Relationship Between Financial Issues and Divorce. Family Relations, 61(4). https://doi.org/10.1111/j.1741-3729.2012.00715.x
Dew, J., & Xiao, J. J. (2011). The financial management behavior scale: Development and validation. Journal of Financial Counseling and Planning, 22(1).
Drever, A. I., Odders-White, E., Kalish, C. W., Else-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. Journal of Consumer Affairs, 49(1). https://doi.org/10.1111/joca.12068
Fonta, W. M., Ayuk, E. T., Chukwu, J. O., Onyukwu, O. E., Agu, C. C., & Umenwa, I. O. (2015). Dynamics of remittance utilization by Nigerian households. Progress in Development Studies, 15(4). https://doi.org/10.1177/1464993415592742
Goldsmith, E. B. (2010). Resource Management for Individuals and Families. In Prentice Hall, One Lake Street, Upper Saddle River, New Jersey.
Grusec, J. E., & Davidov, M. (2007). Socialization in the family - The roles of parents. In Handbook of socialization : Theory and research.
Gudmunson, C. G., & Danes, S. M. (2011). Family Financial Socialization: Theory and Critical Review. In Journal of Family and Economic Issues (Vol. 32, Issue 4). https://doi.org/10.1007/s10834-011-9275-y
Gui, Z., Huang, Y., & Zhao, X. (2021). Whom to educate? Financial literacy and investor awareness. China Economic Review, 67. https://doi.org/10.1016/j.chieco.2021.101608
Gutter, M. S., Garrison, S., & Copur, Z. (2010). Social Learning Opportunities and the Financial Behaviors of College Students. Family & Consumer Sciences Research, 38(4).
Haider, M. Z., Hossain, T., & Siddiqui, O. I. (2016). Impact of remittance on consumption and savings behavior in rural areas of Bangladesh. Journal of Business, 1(4). https://doi.org/10.18533/job.v1i4.49
Hair et al. (2017). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). Thousand Oaks. Sage.
Hair, J. F., Hult, G. T. M., Ringle, C. M., Sarstedt, M., Danks, N. P., & Ray, S. (2021). Partial Least Squares Structural Equation Modeling (PLS-SEM) Using R. In Practical Assessment, Research and Evaluation (Vol. 21, Issue 1).
Hair, J. F., Sarstedt, M., Ringle, C. M., & Mena, J. A. (2012). An assessment of the use of partial least squares structural equation modeling in marketing research. Journal of the Academy of Marketing Science, 40(3). https://doi.org/10.1007/s11747-011-0261-6
Hisyam, C. J. (2021). Sistem Sosial Budaya Indonesia (1st ed.). Bumi Aksara.
Ito, M. (2002). The Nature of Bugis Migration and Their Networks. Research Institute for Languages and Culture of Asia and Africa, 21–30.
Johan, I., Rowlingson, K., & Appleyard, L. (2021). The Effect of Personal Finance Education on The Financial Knowledge, Attitudes and Behaviour of University Students in Indonesia. Journal of Family and Economic Issues, 42(2). https://doi.org/10.1007/s10834-020-09721-9
Jorgensen, B. L., & Savla, J. (2010). Financial literacy of young adults: The importance of parental socialization. Family Relations, 59(4). https://doi.org/10.1111/j.1741-3729.2010.00616.x
Kelley, H. H., Chandler, A. B., LeBaron-Black, A. B., Li, X., Curran, M. A., Yorgason, J. B., & James, S. (2022). Spenders and Tightwads Among Newlyweds: Perceptions of Partner Financial Behaviors and Relational Well-Being. Journal of Financial Therapy, 13(1). https://doi.org/10.4148/1944-9771.1288
Kempson, E., Finney, A., & Poppe, C. (2017). Financial Well-being: A Conceptual Model and Preliminary Analysis. In Consumption Research Norway (Issue 8).
Kerkmann, B. C., Lee, T. R., Lown, J. M., & Allgood, S. M. (2000). Financial management, financial problems and marital satisfaction among recently married university students. Journal of Financial Counseling and Planning, 11(2).
Khalisharani, H., Sabri, M. F., Johan, I. R., Burhan, N. A. S., & Yusof, A. N. M. (2022). The Influence of Parental Financial Socialisation and Financial Literacy on University Student’s Financial Behaviour. International Journal of Economics and Management, 16(3). https://doi.org/10.47836/ijeam.16.3.06
Lanz, M., Sorgente, A., & Danes, S. M. (2020). Implicit Family Financial Socialization and Emerging Adults’ Financial Well-Being: A Multi-Informant Approach. Emerging Adulthood, 8(6). https://doi.org/10.1177/2167696819876752
Lin, Y. chun, Chen, A. S. yih, & Song, Y. chen. (2012). Does your intelligence help to survive in a foreign jungle? The effects of cultural intelligence and emotional intelligence on cross-cultural adjustment. International Journal of Intercultural Relations, 36(4). https://doi.org/10.1016/j.ijintrel.2012.03.001
Lindridge, A., & Dibb, S. (2003). Is ‘culture’ a justifiable variable for market segmentation? A cross-cultural example. Journal of Consumer Behaviour, 2(3). https://doi.org/10.1002/cb.106
Lusardi, A., & Mitchell, O. S. (2014). The economic importance of financial literacy: Theory and evidence. Journal of Economic Literature, 52(1). https://doi.org/10.1257/jel.52.1.5
Magli, A. S., Sabri, M. F., Abdul Rahim, H., & Magli, A. S. (2021). Review of The Factor Influencing and Measurements of Financial Well-Being. International Journal of Academic Research in Business and Social Sciences, 11(19). https://doi.org/10.6007/ijarbss/v11-i19/11739
Malone, K., Stewart, S. D., Wilson, J., & Korsching, P. F. (2010). Perceptions of financial well-being among American women in diverse families. Journal of Family and Economic Issues, 31(1). https://doi.org/10.1007/s10834-009-9176-5
Marshall, G. L., Kahana, E., Gallo, W. T., Stansbury, K. L., & Thielke, S. (2021). The price of mental well-being in later life: the role of financial hardship and debt. Aging and Mental Health, 25(7), 1338–1344. https://doi.org/10.1080/13607863.2020.1758902
Masino, S., & Niño-Zarazúa, M. (2020). Improving Financial Inclusion through the Delivery of Cash Transfer Programmes: The Case of Mexico’s Progresa-Oportunidades-Prospera Programme. Journal of Development Studies, 56(1). https://doi.org/10.1080/00220388.2018.1546845
Mohammed Esmail Alekam, J., Salniza Bt Md. Salleh, M., & Sanuri bin Mohd. Mokhtar, S. (2018). The Effect of Family, Peer, Behavior, Saving and Spending Behavior on Financial Literacy among Young Generations. International Journal of Organizational Leadership, 7(3). https://doi.org/10.33844/ijol.2018.60258
Naito, H., Ismailov, A., & Kimaro, A. B. (2021). The effect of mobile money on borrowing and saving: Evidence from Tanzania. World Development Perspectives, 23. https://doi.org/10.1016/j.wdp.2021.100342
Narges, D., & Laily, H. P. (2011). Determinants of financial wellness among Malaysia workers. African Journal of Business Management, 5(24). https://doi.org/10.5897/ajbm10.1267
O’Neill, B., & Xiao, J. J. (2003). Financial Fitness Quiz: A Tool For Analyzing Financial Behavior. Consumer Interests Annual, 49(June 2002).
Ojapinwa, T. V., & Odekunle, L. A. (2013). Workers’ Remittance and Their Effect on the Level of Investment in Nigeria: An Empirical Analysis. International Journal of Economics and Finance, 5(4). https://doi.org/10.5539/ijef.v5n4p89
Payne, S. H., Yorgason, J. B., & Dew, J. P. (2014). Spending Today or Saving for Tomorrow: The Influence of Family Financial Socialization on Financial Preparation for Retirement. Journal of Family and Economic Issues, 35(1). https://doi.org/10.1007/s10834-013-9363-2
Phinney, J. S., Horenczyk, G., Liebkind, K., & Vedder, P. (2001). Ethnic identity, immigration, and well-being: An interactional perspective. Journal of Social Issues, 57(3). https://doi.org/10.1111/0022-4537.00225
PPLN Tawau. (2023). Data Primer Pemilu Tawau.
Prawitz, A. D., Garman, E. T., Sorhaindo, B., O’Neill, B., Kim, J., & Drentea, P. (2006). InCharge financial distress/financial well-being scale: Development, administration, and score interpretation. Journal of Financial Counseling and Planning, 17(1).
Rahman, M., Isa, C. R., Masud, M. M., Sarker, M., & Chowdhury, N. T. (2021). The role of financial behaviour, financial literacy, and financial stress in explaining the financial well-being of B40 group in Malaysia. Future Business Journal, 7(1). https://doi.org/10.1186/s43093-021-00099-0
Saxey, M. T., LeBaron-Black, A. B., Dew, J. P., & Curran, M. A. (2022). Less Than Fully Honest: Financial Deception in Emerging Adult Romantic Relationships. Emerging Adulthood, 10(6), 1529–1542. https://doi.org/10.1177/21676968221089190
Serido, J., Shim, S., & Tang, C. (2013). A developmental model of financial capability: A framework for promoting a successful transition to adulthood. International Journal of Behavioral Development, 37(4). https://doi.org/10.1177/0165025413479476
Setiadi, E. M. (2020). Pengantar ringkas sosiologi : pemahaman fakta dan gejala permasalahan sosial (teori, aplikasi, dan pemecahannya) (pertama). Kencana.
Shih, T. Y., & Ke, S. C. (2014). Determinates of financial behavior: Insights into consumer money attitudes and financial literacy. Service Business, 8(2). https://doi.org/10.1007/s11628-013-0194-x
Shim, S., Barber, B. L., Card, N. A., Xiao, J. J., & Serido, J. (2010). Financial Socialization of First-year College Students: The Roles of Parents, Work, and Education. Journal of Youth and Adolescence, 39(12). https://doi.org/10.1007/s10964-009-9432-x
Shim, S., Xiao, J. J., Barber, B. L., & Lyons, A. C. (2009). Pathways to life success: A conceptual model of financial well-being for young adults. Journal of Applied Developmental Psychology, 30(6). https://doi.org/10.1016/j.appdev.2009.02.003
Strömbäck, C., Skagerlund, K., Västfjäll, D., & Tinghög, G. (2020). Subjective self-control but not objective measures of executive functions predicts financial behavior and well-being. Journal of Behavioral and Experimental Finance, 27. https://doi.org/10.1016/j.jbef.2020.100339
Thapa, S., & Acharya, S. (2017). Remittances and household expenditure in Nepal: Evidence from cross-section data. Economies, 5(2). https://doi.org/10.3390/economies5020016
The Consumer Financial Protection Bureau. (2015). Financial well-being: The goal of financial education.
Ward, C., & Geeraert, N. (2016). Advancing acculturation theory and research: The acculturation process in its ecological context. In Current Opinion in Psychology (Vol. 8). https://doi.org/10.1016/j.copsyc.2015.09.021
World Bank. (2017). Laporan Bank Dunia Indonesia Pekerja Global Indonesia Antara Peluang dan Resiko.
Xiao, J. J. (2008). Applying behavior theories to financial behavior. In Handbook of Consumer Finance Research. https://doi.org/10.1007/978-0-387-75734-6_5
Xiao, J. J. (2016). Consumer Financial Capability and Wellbeing. In Handbook of Consumer Finance Research: Second Edition. https://doi.org/10.1007/978-3-319-28887-1_1
Xiao, J. J., Chen, C., & Chen, F. (2014). Consumer financial capability and financial satisfaction. Social Indicators Research, 118(1). https://doi.org/10.1007/s11205-013-0414-8
Xiao, J. J., Tang, C., & Shim, S. (2009). Acting for happiness: Financial behavior and life satisfaction of college students. Social Indicators Research, 92(1). https://doi.org/10.1007/s11205-008-9288-6
Zaenuddin, D. (2017). GLOBALISED CITIZENSHIP AND MIGRANT BUGIS IN MULTICULTURAL MALAYSIA. GLOBAL CONNECTIVITY, 285.
DOI: http://dx.doi.org/10.18415/ijmmu.v10i12.5405
Refbacks
- There are currently no refbacks.
Copyright (c) 2023 International Journal of Multicultural and Multireligious Understanding
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
https://ijmmu.com
editor@ijmmu.com
facebook.com/ijmmu
Copyright © 2014-2018 IJMMU. All rights reserved.