The Effect of Financial Literacy and Lifestyle on Cashless Transaction Behavior

Abstract

The purpose of this study is to analyze the effect of financial literacy on cashless transaction behavior mediated by lifestyle among employees of the Blora Regency Regional Secretariat. The population as well as the sample in this study consisted of 112 Civil Servants (PNS) of the Blora Regency Secretariat. Data were analyzed using the Partial Least Square (PLS) method with the SmartPLS 3 tool. The sampling method used was a saturated or census sampling technique. Data were collected through questionnaires. The results of this study show that financial literacy has a significant positive effect on lifestyle variables, and lifestyle has a positive and significant effect on cashless transaction behavior. Financial literacy also has a significant positive effect on cashless transaction behavior. However, lifestyle is not related to financial literacy variables and cashless transaction behavior. Furthermore, the R-square value for the cashless transaction behavior variable is 0.460, meaning that financial literacy explains 46% of cashless transaction behavior, while for the lifestyle variable the R-square value is 0.402, meaning that financial literacy explains 40.2% of lifestyle. The remaining percentage is explained by other variables not included in this study.