The Influence of Financial Knowledge on The Financial Behavior of Generation Z: Mediated by Financial Self-Efficacy and Lifestyle

Abstract

As part of Generation Z, most students are accustomed to using the internet and social media. They often behave consumptively on social media, so they need financial knowledge and self-confidence to manage finances as a form of reflection of financial behavior and lifestyle demands. Generation Z's financial knowledge, lifestyle, and financial self-confidence are exciting topics to study, with their consumerist lifestyle, with many facilities and conveniences, such as online sales and shopping centers that offer many lifestyle needs. This research uses a quantitative approach to investigate the relationship between financial knowledge and financial behavior mediated by financial self-efficacy and lifestyle. The research sample was 120 student respondents who made online purchases at least five times a month for personal needs. This research contributes to the Theory of Planned Behavior. An analysis tool using Structural Equation Modeling (SEM) shows that knowledge about finance influences behavior related to finance directly, and self-efficacy in financial matters can offset the impact of knowledge about finance on this behavior.