Examining the Impact of Socioeconomic Status and Digital Financial Literacy on Financial Behavior Among Indonesian Gen Z

Abstract

Purpose: This study thoroughly examines how socioeconomic status and digital financial literacy (DFL) influence financial behavior, moving away from the usual emphasis on millennials or business students in prior studies. Design/methodology/approach: This study used a quantitative methodology, surveying 312 Generation Z participants aged 15 to 27 from various regions of Indonesia. The poll encompassed digital financial literacy, socioeconomic variables (age, education, income, gender), and financial behavior. Statistical techniques were employed to examine the relationships between socioeconomic position and DFL and DFL's influence on financial behavior. Findings: The research shows a positive correlation between digital financial literacy (DFL) and income, highlighting income as the only significant factor influencing DFL. Research limitations/implications: The results are s ignificant for legislators, educators, and corporate executives. Comprehending the impact of income on digital financial literacy (DFL) facilitates the development of tailored initiatives to enhance financial literacy among various socioeconomic demographics. These insights can drive educational efforts, regulations, and digital technologies to better equip Generation Z for future economic difficulties and educated financial decision-making, enhancing national financial stability. Originality/value: This study contributes to the literature by examining Indonesia's Generation Z, a demographic frequently neglected in digital financial literacy (DFL) studies. Unlike other studies concentrating on certain student groups, this research encompasses various participants across Indonesia. The novelty resides in examining how socioeconomic factors, particularly poverty, affect DFL and influence financial behavior, providing novel insights for developing inclusive financial literacy initiatives.