Antecedents of Financial Behavior: Evidence from Gen Z College Students
Keywords:
financial knowledge, hedonic lifestyle, financial attitude, financial behavior, Gen ZAbstract
A significant portion of the Indonesian population is made up of Gen Z, and more than half of them will soon have the chance to enter the workforce. Thus, a study on their financial behaviors is crucial because their financial decisions and actions contribute to the establishment of a stable, innovative, and responsible economic environment. This research aims to determine and analyze the influence of financial knowledge, hedonic lifestyle, and financial attitudes on financial behavior among Gen Z college students. The current paper adds to a limited study concerning financial behavior of Gen Z in Indonesia, where the majority of demographic profile consist of Gen Z. Gaining a comprehensive understanding of the Gen Z financial behaviour, attitude, lifestyle, and perspective is crucial in order to discover the genuine road towards Indonesia's prosperous future. Using a nonprobability sampling technique with purposive sampling method, an online questionnaire was conducted to collect student data, yielding 283 usable responses, which were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). Research findings highlight that financial knowledge and attitudes positively and significantly affect financial behavior. In contrast, a hedonic lifestyle negatively and significantly affects financial behavior. The findings of this research provide theoretical and practical contributions regarding the preparation of program to enhance financial knowledge among Gen Z in Indonesia.
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