How Does Mental Accounting Influence Financial Decision-Making Among New Employees in Indonesia?

Riza Amalia Rifani; Adriansyah Adriansyah; Muhammad Nur Farid Iqra

doi:10.56341/aafj.v3i1.573

Riza Amalia Rifani Accounting Study Program, Faculty of Business, Andi Sapada Institute of Social Sciences and Business, Paraepare, Indonesia
Adriansyah Adriansyah Accounting Education Study Program, Faculty of Economics and Business, Makassar State University, Makassar, Indonesia
Muhammad Nur Farid Iqra MSc Finance and Economics Study Program, Sustainable Finance Track, Faculty of Law, Economics and Finance, University of Luxembourg

DOI: https://doi.org/10.56341/aafj.v3i1.573

Keywords: Mental Accounting, Financial, Decision-Making

Abstract

Mental accounting is a concept that explains how individuals categorize, group, and evaluate their economic decisions. The study hypothesizes that income and expense categorization, as well as allocation preferences, influence the financial decision-making of new employees. The research uses a quantitative approach with a descriptive method, collecting primary data through a questionnaire distributed to 200 new employees in Indonesia. The results show that both income and expense categorization and allocation preferences significantly influence the financial decision-making of new employees.