HOW MENTAL ACCOUNTING AFFECTS THE FINANCIAL MANAGEMENT OF INDONESIAN MILK INDUSTRY EMPLOYEES IN THE COVID 19 PANDEMIC

Abstract

Financial management is very much needed during the current pandemic crisis. This action has been done to meet the unlimited needs of life with limited resources. This study aims to prove the effect of mental accounting which consists of short-term orientation, self-control, and mental budget on personal financial management. This research includes quantitative research with an explanatory approach, which is a type of research to determine the effect between variables to be studied. The number of samples used in this study were 100 employees consisting of 85 men and 15 women. The results of this study prove that the independent variables consisting of short-term-orientation, self-control, and mental budget have an effect of 32, 6% of the personal financial management of employees while the remaining 67.4% is influenced by other factors that are not explained in this study. Future research is expected to add other variables that affect personal financial management, such as hedonistic behavior, personality life (character) and the amount of income that may be variables that affect financial management.