Determinants of Financial Well-Being among Generation Z: The Mediating Role of Financial Behavior

Johny Budiman(1*), Caroline Caroline(2), Candy Candy(3)


(1) Faculty of Business and Management, Batam International University
(2) Faculty of Business and Management, Batam International University
(3) Faculty of Business and Management, Batam International University
(*) Corresponding Author

Abstract


Financial well-being has turn into an important issue for Generation Z amid the growing challenges in money management and purchasing patterns. This research aims to investigate the impact of financial literacy and monetary perspectives, financial self-efficacy, and internal locus of control on financial well-being in financial behavior among Generation Z in Batam City. A quantitative survey was conducted on 421 participants were recruited through a Likert-scale. Information was gathered through a rating-scale survey and examined using PLS-SEM techniques. The findings indicate that financial attitude, financial self-efficacy, and internal locus of control influence financial behavior, while financial knowledge does not. Furthermore, financial literacy, monetary confidence, personal control orientation, and fiscal practices demonstrated a favorable and statistically meaningful influence on financial well-being, whereas financial perspective showed an inverse yet statistically meaningful relationship. Financial conduct additionally serves as an intermediary in the relationships between several independent variables and financial well-being. These findings suggest that financial well-being among Generation Z is influenced more by psychological factors and financial behavior than by financial knowledge alone.

Keywords


Financial Knowledge, Financial Attitude, Financial Self-Efficacy, Financial Behavior, Financial Well-Being

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References


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DOI: https://doi.org/10.26714/vameb.v22i2.21651

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