The role of self-control in reducing financial threat perception at The onset of COVID-19 pandemic

Danes Quirira Octavio, Dediek Tri Kurniawan, Slamet Fauzan, Fikri Irfan Adristi

Abstract


In this study we attempt to understand how people manage their condition during uncertainty, such as the economic crisis induced by the Covid-19 pandemic. In short,  we analyze the relationship between self-control, good financial behavior, and financial threat perception at the onset of the Covid-19 pandemic. A web-based survey was conducted to collect the sample (n = 589) in Indonesians people. This study found that self-control not only encourages good financial behavior but also reduces financial threat perception in the middle of uncertainty. However, good financial behavior cannot mediate the effect of self-control and financial threat perception. Our study provides evidence that at the onset of a financial crisis, self-control is needed to cope with acute stress that arises from sudden uncertainty. Having good financial behavior cannot fully alleviate financial threat perception. Self-control has a direct mechanism in coping with financial threats during COVID-19.

Keywords: personal finance; self-control; Covid-19; pandemic; financial stress


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References


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DOI: https://doi.org/10.21831/jim.v21i2.75027

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