Determinants of Financial Management Skills Among Indonesia’s Gen Z
DOI:
https://doi.org/10.35877/454RI.daengku2573Keywords:
Financial Management Skills; Generation ZAbstract
New to the workforce, Gen Z's financial management skills are crucial. This study explores how factors like financial literacy, family education from family, financial attitude, hedonism lifestyle and financial knowledge on Generation Z’s financial management skills. A survey of 257 Gen Z members explored financial management skills using Structural Equation Modelling (SEM) analysis via SmartPLS 3.0 software. Financial education from family, hedonism lifestyle, and financial knowledge has no significant impact on Generation Z’s financial management skills. however, financial literacy and financial attitude have an impact. Research implications This Research's findings impact policymakers, financial institutions and academic. Academic institutions should provide sufficient financial education for Generation Z to empower them on financial choices. Policymakers must encourage prudent financial habits among Generation Z. This research focuses on Generation Z who are new to the workforce and many of the variations in the determinants of financial management skills have not been explored in previous research.
References
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Fietroh, M. N. U. R. (2023). The Impact of Financial Literacy , Financial Technology , and Financial Behavior on Generation Z Financial Inclusion. 7(1), 299–307
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Maris, S., Baptista, J., & Dewi, A. S. (2021). The Influence of Financial Attitude , Financial Literacy , and Locus of Control on Financial Management Behavior. 5(1), 93–98.
Oktiarso, T., & Nadira, A. H. K. (2019). Risk Mitigation for Agricultural Products Distribution in Agro-business Terminal Mantung, Kabupaten Malang. IOP Conference Series: Materials Science and Engineering, 528(1). https://doi.org/10.1088/1757-899X/528/1/012087
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Sari, A. P., & Apriyanti, M. D. (2023). The Influence Of Lifestyle And Financial Literacy On The Financial Management Of Young Workers. 2(3), 628–635.
Satria, A., Hutabarat, S., & Wijaya, C. (2020). Analysis The Effect Of Financial Literacy On Financial Planning For Retirement ( Case Study Lecturers And Administrative Staffs In Universitas Indonesia ). 11(5), 741–750. https://doi.org/10.34218/IJM.11.5.2020.06
Susanti, N., Rahmayanti, R., Padmakusumah, R. R., & Susanto, R. (2019). Factors Affecting Students ’ Financial Literation?: A Study on Widyatama University , Indonesia. 7, 7–14. https://doi.org/10.13189/ujer.2019.071502
Yahaya, R., Zainol, Z., Haji, J., Zainal, O., Yahaya, R., Zainol, Z., Haji, J., & Zainal, O. (2019). The Effect of Financial Knowledge and Financial Attitudes on Financial Behavior among University Students The Effect of Financial Knowledge and Financial Attitudes on Financial Behavior among University Students. 9(8), 22–32. https://doi.org/10.6007/IJARBSS/v9-i8/6205
Yana, N., & Setyawan, I. R. (2023). Do Hedonism Lifestyle And Financial Literacy Affect To Student ’ S Personal Financial Management. 1(2), 880–888.
Yoopetch, C., & Chaithanapat, P. (2021). Kasetsart Journal of Social Sciences The e ffect of financial attitude , financial behavior and subjective norm on stock investment intention. 42, 501–508.
Yudha, A., & Pradana, A. (2022). Combination of Financial Knowledge and Financial Attitude in Establishing Good Financial Management Behaviour for Students After the COVID-19 Pandemic. 15(2).
Sulhan, M., & Choiruddin, M. N. (2021). Analysis of the Impact of Financial Knowledge, Financial Attitudes and Personality on Financial Management Behaviors in Creative Industries. http://diskopukm.jatimprov.go.id
Syarif, A., & Putri, A. (2022). The Influence of Financial Attitude, Financial Knowledge, and Personal Income on Personal Financial Management Behavior. 1(1), 2022. https://doi.org/10.54099
Agustina, N. R., & Mardiana. (2020). The Effect of Financial Knowledge and Financial Attitude on Financial Management Behavior Mediated with Locus of Control. Management and Economics Journal, 4(3), 273–284.
Sharmila Devi, R., & Perumandla, S. (2023). Does hedonism influence real estate investment decisions? The moderating role of financial self-efficacy. Cogent Economics and Finance, 11(1). https://doi.org/10.1080/23322039.2023.2217581
Tanika, C., William, Hartanto, M. P., & Tanjung, M. (2022). Factors Influencing Indonesian Consumers to Use Digital Banking. Proceedings - 4th International Conference on Informatics, Multimedia, Cyber and Information System, ICIMCIS 2022, 546–551. https://doi.org/10.1109/ICIMCIS56303.2022.10017694
Siregar, Q. R., & Simatupang Jumeida. (2022). The Influence of Financial Knowledge, Income, and Lifestyle on Financial Behavior of Housewives at Laut Dendang Village. Journal of International Conference Proceedings (JIPC), 5(2), 646–654. https://doi.org/10.32535/jicp.v5i2.1850
Wardiansyah, D. R., & Indrawati, N. K. (2021). The Influence of Financial Knowledge, Financial Attitude, and Personality on Financial Management Behavior on XYZ Islamic Boarding School Ponorogo. Kinerja, 25(2), 251–269. https://doi.org/10.24002/kinerja.v25i2.4772
Banthia, D., & Dey, S. K. (2022). Impact of Financial Knowledge, Financial Attitude and Financial Behaviour on Financial Literacy: Structural Equitation Modeling Approach. Universal Journal of Accounting and Finance, 10(1), 327–337. https://doi.org/10.13189/UJAF.2022.100133
Dewi, V. I., Febrian, E., Effendi, N., & Anwar, M. (2020). Financial literacy among the millennial generation: Relationships between knowledge, skills, attitude, and behavior. Australasian Accounting, Business and Finance Journal, 14(4), 24–37. https://doi.org/10.14453/aabfj.v14i4.3
Yogasnumurti, R. R., Sadalia, I., & Irawati, N. (2021). The Effect of Financial, Attitude, and Financial Knowledge on the Personal Finance Management of College Collage Students. Ebic 2019, 649–657. https://doi.org/10.5220/0009329206490657
Moko, W., Sudiro, A., & Kurniasari, I. (2022). The effect of financial knowledge, financial attitude, and personality on financial management behavior. International Journal of Research in Business and Social Science (2147- 4478), 11(9), 184–192. https://doi.org/10.20525/ijrbs.v11i9.2210
Stefani Marina Palimbong, Leni Agnes, & Elisabet Pali. (2022). The Influence of Hedonism Style, Spiritual Intelligence and Financial Literacy on Student Personal Finance Management (Case study on students of the Faculty of Economics, Indonesian Christian University Toraja). Proceeding of The International Conference on Economics and Business, 1(2), 24–36. https://doi.org/10.55606/iceb.v1i2.109
Baptista, S. M. J. (2021). The Influence of Financial Attitude, Financial Literacy, and Locus of Control on Financial Management Behavior (Study Case Working-Age of Semarang). International Journal of Social Science and Business, 5(1), 93–98. https://doi.org/10.23887/ijssb.v5i1.31407
Wongsowinoto, F. (2022). The Effect of Financial Knowledge, Technology, and Behavioral Control on Student Financial Behavior. International Journal of Accounting Finance in Asia Pasific, 5(3), 50–60. https://doi.org/10.32535/ijafap.v5i3.1879
Bakar, M. Z. A., Bakar, S. A., Mosteanu, N. R., Faccia, A., Chang, C.-L., McAleer, M., Wong, W.-K., Ghosh, S., Prihartono, M. R. D., Asandimitra, N., Yuniningsih, Y., Pertiwi, T. K., Purwanto, E., Belasri, S., Gomes, M., Pijourlet, G., Benlemlih, M., Kholilah, N. Al, Iramani, R., … Thavakumar, D. (2020). Personal Financial Management Behaviour of Lower Income People in Batticaloa District. Journal of Multinational Financial Management, 13(1), 38–49. https://doi.org/10.1080/02692171.2020.1864301%0Ahttp://dx.doi.org/10.1016/j.mulfin.2017.10.004%0Ahttps://doi.org/10.1016/j.mulfin.2020.100612%0Ahttps://doi.org/10.1016/j.mulfin.2018.10.001
Bado, B., Hasan, M., Tahir, T., & Hasbiah, S. (2023). How Do Financial Literacy, Financial Management Learning, Financial Attitudes And Financial Education In Families Affect Personal Financial Management In Generation Z. International Journal of Professional Business Review, 8(5), e02001. https://doi.org/10.26668/businessreview/2023.v8i5.2001
Badoa, B., Hasanb, M., Tahirc, T., & Hasbiahd, S. (2023). Keuangan Dan Pendidikan Keuangan Dalam Keluarga Mempengaruhi Manajemen Keuangan Pribadi Pada Generasi Z.? Riwayat artikel?: (Issue 1).
Bhandare, P. V. (2021). Impact of financial literacy models on the financial behavior of individuals?: An empirical study on the Indian context. 2005, 377–387. https://doi.org/10.1002/jsc.2431
Dabija, D. (2020). A Qualitative Approach to the Sustainable Orientation of Generation Z in Retail?: The Case of Romania.
Feralda, M., Hafidzi, A. H., & Samsuryaningrum, I. P. (2022). The Influence of Financial Attitude , Self Control , and Hedonism Style on Financial Management Behavior of Student Shopee Paylater Users in Jember District. 2019, 1169–1182.
Fietroh, M. N. U. R. (2023). The Impact of Financial Literacy , Financial Technology , and Financial Behavior on Generation Z Financial Inclusion. 7(1), 299–307
Fungky, T., Sari, T. P., & Sanjaya, V. F. (2021). Pengaruh Gaya Hidup Serta Literasi Keuangan Terhadap Perilaku Konsumtif Generasi Z pada Masa Pandemi (Studi Kasus Mahasiswa/I Manajemen Bisnis Syariah, Uin Raden Intan Lampung Angkatan 2019). Jurnal Valuasi: Jurnal Ilmiah Ilmu Manajemen Dan Kewirausahaan, 1(1), 82–98.
Gunawan, A. (2019). Effect of Financial Literacy and Lifestyle of Finance Student Behavior. 1(3), 76–86.
Humaidi, A., Khoirudin, M., Riska, A., & Kautsar, A. (2020). The Effect of Financial Technology , Demography , and Financial Literacy on Financial Management Behavior of Productive Age in Surabaya , Indonesia. 6(1), 77–81. https://doi.org/10.31695/IJASRE.2020.33604
Kurniasari, I., & Ratnawati, K. (2023). Does Parent Behavior Influence Children Financial Behavior?? 6(1), 376–384.
Laga, A., & Hizazi, A. (2023). The Effect of Financial Literacy , Financial Attitude , Locus of Control , and Lifestyle on Financial Management Behavior ( Case Study on Undergraduate Accounting Study Program Students Faculty of Economics and Business Jambi University ) Pengaruh Financial Literacy , Financial Attitude , Locus of Control dan Lifestyle Terhadap Financial Management Behavior ( Studi Kasus pada Mahasiswa Program Studi S1 Akuntansi Fakultas Ekonomi dan Bisnis Universitas Jambi ). 1(4), 459–480.
Letkiewicz, J. C., Lim, H., Heckman, S. J., & Catherine, P. (2019). Parental Financial Socialization?: Is Too Much Help Leading to Debt Ignorance among College Students. https://doi.org/10.1111/fcsr.12341
Maris, S., Baptista, J., & Dewi, A. S. (2021). The Influence of Financial Attitude , Financial Literacy , and Locus of Control on Financial Management Behavior. 5(1), 93–98.
Oktiarso, T., & Nadira, A. H. K. (2019). Risk Mitigation for Agricultural Products Distribution in Agro-business Terminal Mantung, Kabupaten Malang. IOP Conference Series: Materials Science and Engineering, 528(1). https://doi.org/10.1088/1757-899X/528/1/012087
R, S. D., & Perumandla, S. (2023). Cogent Economics & Finance Does hedonism influence real estate investment decisions. Cogent Economics & Finance, 11(1). https://doi.org/10.1080/23322039.2023.2217581
Sansone, D., Rossi, M., & Fornero, E. (n.d.). (2019) “Four Bright Coins Shining at Me” Financial Education in Childhood, Financial Confidence in Adulthood ?. https://doi.org/10.1111/joca.12207
Sari, A. P., & Apriyanti, M. D. (2023). The Influence Of Lifestyle And Financial Literacy On The Financial Management Of Young Workers. 2(3), 628–635.
Satria, A., Hutabarat, S., & Wijaya, C. (2020). Analysis The Effect Of Financial Literacy On Financial Planning For Retirement ( Case Study Lecturers And Administrative Staffs In Universitas Indonesia ). 11(5), 741–750. https://doi.org/10.34218/IJM.11.5.2020.06
Susanti, N., Rahmayanti, R., Padmakusumah, R. R., & Susanto, R. (2019). Factors Affecting Students ’ Financial Literation?: A Study on Widyatama University , Indonesia. 7, 7–14. https://doi.org/10.13189/ujer.2019.071502
Yahaya, R., Zainol, Z., Haji, J., Zainal, O., Yahaya, R., Zainol, Z., Haji, J., & Zainal, O. (2019). The Effect of Financial Knowledge and Financial Attitudes on Financial Behavior among University Students The Effect of Financial Knowledge and Financial Attitudes on Financial Behavior among University Students. 9(8), 22–32. https://doi.org/10.6007/IJARBSS/v9-i8/6205
Yana, N., & Setyawan, I. R. (2023). Do Hedonism Lifestyle And Financial Literacy Affect To Student ’ S Personal Financial Management. 1(2), 880–888.
Yoopetch, C., & Chaithanapat, P. (2021). Kasetsart Journal of Social Sciences The e ffect of financial attitude , financial behavior and subjective norm on stock investment intention. 42, 501–508.
Yudha, A., & Pradana, A. (2022). Combination of Financial Knowledge and Financial Attitude in Establishing Good Financial Management Behaviour for Students After the COVID-19 Pandemic. 15(2).
Sulhan, M., & Choiruddin, M. N. (2021). Analysis of the Impact of Financial Knowledge, Financial Attitudes and Personality on Financial Management Behaviors in Creative Industries. http://diskopukm.jatimprov.go.id
Syarif, A., & Putri, A. (2022). The Influence of Financial Attitude, Financial Knowledge, and Personal Income on Personal Financial Management Behavior. 1(1), 2022. https://doi.org/10.54099
Agustina, N. R., & Mardiana. (2020). The Effect of Financial Knowledge and Financial Attitude on Financial Management Behavior Mediated with Locus of Control. Management and Economics Journal, 4(3), 273–284.
Sharmila Devi, R., & Perumandla, S. (2023). Does hedonism influence real estate investment decisions? The moderating role of financial self-efficacy. Cogent Economics and Finance, 11(1). https://doi.org/10.1080/23322039.2023.2217581
Tanika, C., William, Hartanto, M. P., & Tanjung, M. (2022). Factors Influencing Indonesian Consumers to Use Digital Banking. Proceedings - 4th International Conference on Informatics, Multimedia, Cyber and Information System, ICIMCIS 2022, 546–551. https://doi.org/10.1109/ICIMCIS56303.2022.10017694
Siregar, Q. R., & Simatupang Jumeida. (2022). The Influence of Financial Knowledge, Income, and Lifestyle on Financial Behavior of Housewives at Laut Dendang Village. Journal of International Conference Proceedings (JIPC), 5(2), 646–654. https://doi.org/10.32535/jicp.v5i2.1850
Wardiansyah, D. R., & Indrawati, N. K. (2021). The Influence of Financial Knowledge, Financial Attitude, and Personality on Financial Management Behavior on XYZ Islamic Boarding School Ponorogo. Kinerja, 25(2), 251–269. https://doi.org/10.24002/kinerja.v25i2.4772
Banthia, D., & Dey, S. K. (2022). Impact of Financial Knowledge, Financial Attitude and Financial Behaviour on Financial Literacy: Structural Equitation Modeling Approach. Universal Journal of Accounting and Finance, 10(1), 327–337. https://doi.org/10.13189/UJAF.2022.100133
Dewi, V. I., Febrian, E., Effendi, N., & Anwar, M. (2020). Financial literacy among the millennial generation: Relationships between knowledge, skills, attitude, and behavior. Australasian Accounting, Business and Finance Journal, 14(4), 24–37. https://doi.org/10.14453/aabfj.v14i4.3
Yogasnumurti, R. R., Sadalia, I., & Irawati, N. (2021). The Effect of Financial, Attitude, and Financial Knowledge on the Personal Finance Management of College Collage Students. Ebic 2019, 649–657. https://doi.org/10.5220/0009329206490657
Moko, W., Sudiro, A., & Kurniasari, I. (2022). The effect of financial knowledge, financial attitude, and personality on financial management behavior. International Journal of Research in Business and Social Science (2147- 4478), 11(9), 184–192. https://doi.org/10.20525/ijrbs.v11i9.2210
Stefani Marina Palimbong, Leni Agnes, & Elisabet Pali. (2022). The Influence of Hedonism Style, Spiritual Intelligence and Financial Literacy on Student Personal Finance Management (Case study on students of the Faculty of Economics, Indonesian Christian University Toraja). Proceeding of The International Conference on Economics and Business, 1(2), 24–36. https://doi.org/10.55606/iceb.v1i2.109
Baptista, S. M. J. (2021). The Influence of Financial Attitude, Financial Literacy, and Locus of Control on Financial Management Behavior (Study Case Working-Age of Semarang). International Journal of Social Science and Business, 5(1), 93–98. https://doi.org/10.23887/ijssb.v5i1.31407
Wongsowinoto, F. (2022). The Effect of Financial Knowledge, Technology, and Behavioral Control on Student Financial Behavior. International Journal of Accounting Finance in Asia Pasific, 5(3), 50–60. https://doi.org/10.32535/ijafap.v5i3.1879
Bakar, M. Z. A., Bakar, S. A., Mosteanu, N. R., Faccia, A., Chang, C.-L., McAleer, M., Wong, W.-K., Ghosh, S., Prihartono, M. R. D., Asandimitra, N., Yuniningsih, Y., Pertiwi, T. K., Purwanto, E., Belasri, S., Gomes, M., Pijourlet, G., Benlemlih, M., Kholilah, N. Al, Iramani, R., … Thavakumar, D. (2020). Personal Financial Management Behaviour of Lower Income People in Batticaloa District. Journal of Multinational Financial Management, 13(1), 38–49. https://doi.org/10.1080/02692171.2020.1864301%0Ahttp://dx.doi.org/10.1016/j.mulfin.2017.10.004%0Ahttps://doi.org/10.1016/j.mulfin.2020.100612%0Ahttps://doi.org/10.1016/j.mulfin.2018.10.001
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Published
2024-05-15
How to Cite
Iqbal Raditya Maulana, Sadamsyah, & Miranda Tanjung. (2024). Determinants of Financial Management Skills Among Indonesia’s Gen Z. Daengku: Journal of Humanities and Social Sciences Innovation, 4(3), 465–477. https://doi.org/10.35877/454RI.daengku2573
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