17 The money that people usually borrow when they want to make
purchases are not needed by these people. The first reason is because they have their saving to cover it so instead of borrowing money, they will take
money from their saving. The second reason is that people with high retention time usually have their budget for everything so it‟s rarely happen
that they need extra money. These people with high retention time who are called budget-minded individuals by Engelberg Sjoberg 2006 also
found to have less favorable attitudes toward borrowing money on previous studies.
H
6
: Money retention has a negative significant effect on borrowing habit.
1.7.7. The Effect of CBB on Borrowing Habit
Generally, compulsive buyers need more money than normal people do. The reason is because their willingness to buy can easily come
whenever they feel unhappy, sad, or depressed. For these people, when the willingness to buy come they will try hard to make it happen. When they
want to make purchases but in the same time they do not have money, these people will try to get the money.
Borrowing money from friends or family is one easy way to get the money. The more often they want to make purchases when they don‟t have
18 enough money, the more they borrow. The more often they borrow, the
worse their borrowing habit. In the end they usually have a lot of debt to be paid Joireman
et al
., 2010 without having the ability to pay. This conclusion is also supported by Edwards 1993 who stated on his paper that
many cases of excessive borrowing are resulted from compulsive spending. Workman 2010 even called the people who love to borrow money because
of their compulsive buying behavior as compulsive debtor. The effect of CBB on borrowing habit can also be analyzed using
the prospect theory by Kahneman Tversky 1979. Compulsive buyers are those who are in the „loss domain‟ since they tend to be risk takers and tend
to take irrational actions, including borrowing money. Therefore they do not hesitate on making decision about borrowing money although they realize
that borrowing money means more debt to pay, a bigger risk.
H
7
: CBB has a positive significant effect on borrowing habit.
1.7.8. The Mediating Role of CBB on the Effect of Pocket Money to
Borrowing Habit
To make purchases people need money, therefore the amount of money that people have will affect the purchases they make. Consumption
is determined by the amount of pocket money, earnings from work, and the various additional sums of money that they are given Bonke, 2013.
19 Similarly, when people have larger amount of money, they have greater
chance to make purchases than those who have limited amount of money. The effect of pocket money on buying behavior, especially to
buying behavior has been investigated by Lin Lin 2005. The authors found that impulsive buying behavior tend to increase when there is an
increasing of the amount of pocket money. As well as the effect on impulsive buying behavior, the effect of pocket money on CBB is also
positive as found by Guo Cai 2011. By having large amount of money that will lead people to be compulsive buyers, these people will also suffer
from their unmanageable debt because of their CBB. It is because compulsive buyers continually need to borrow money from family and
friends, not only for shopping but to pay their credit card debt.
H
8
: CBB plays mediating role between pocket money and borrowing habit
1.7.9. The Mediating Role of CBB on the Effect of Peer Acceptance
