Lifestyle, Financial Literacy, and Financial Management of Young Civil Servants (ASN) at The Badung Provincial Regional Office

Abstract

Background: Young civil servants (ASN) at the Badung Regional Office face challenges in personal financial management due to low financial literacy and consumptive lifestyles. Most spend over half of their income on consumption, leaving little for savings and investment.

Objective: This study aims to analyze the impact of lifestyle and financial literacy on the financial management of young civil servants (ASN) in the Badung Provincial Regional Office, clarifying the relative magnitude of the impact of each variable and the contribution of novelty in research on public sector financial behavior.

Methods: Using a quantitative descriptive design, 70 respondents (Slovin method, e=10%) were randomly selected from 230 ASN staff by simple random sampling. Data were collected using a validated questionnaire (Cronbach alpha = 0.977) and analyzed using multiple linear regression, t-test, F-test, and the coefficient of determination. Classical assumption tests (normality, multicollinearity, heteroscedasticity) verified the validity of the model.

Results: Lifestyle habits had a significant impact on financial management (β = 0.609, t = 9.876, p < 0.001). Financial literacy also showed significant positive effects (β = 0.173, t = 3.060, p = 0.003). Simultaneously, both variables significantly influenced financial management (F = 1265.800, p < 0.001), accounting for 97.4% of the variance (R² = 0.974).

Conclusion: Both lifestyle and financial literacy have a significant and positive impact on the financial management of young civil servants at the Badung Provincial Regional Office. Improving financial literacy programs and promoting a responsible lifestyle are recommended to foster the economic well-being of young workers.