How Financial Literacy, Hedonic Lifestyle, and Love of Money Influence Gen Z Financial Behavior
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Abstract
This study investigates the influence of financial literacy, hedonic lifestyle, and love of money on the financial behavior of Generation Z in Indonesia. As a digitally active generation, Gen Z is frequently exposed to consumption-oriented content but often lacks strong financial planning skills. Understanding their financial behavior is critical for developing relevant educational and policy interventions. A quantitative causal approach was applied, using data from 225 respondents aged 17 to 27 who earn personal income. Data were collected through a structured questionnaire and analyzed using Partial Least Squares Structural Equation Modeling (SEM-PLS). Validity and reliability were confirmed through outer loading, AVE, and composite reliability. Findings reveal that financial literacy significantly and positively affects financial behavior, affirming the role of knowledge in shaping responsible money management. Unexpectedly, hedonic lifestyle also has a positive influence, indicating that lifestyle enjoyment may coexist with financial discipline. Love of money, however, does not show a significant effect. These results suggest that financial behavior among Gen Z is shaped not only by knowledge but also by values and lifestyle, which may not always align with traditional assumptions. Financial education should therefore address both rational and emotional dimensions of youth financial decision-making.
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