The Influence of Financial Literacy, Financial Socialization, and Self-Control on the Financial Behavior of Generation Z in Indonesia

Abstract

This study investigates the simultaneous effects of financial literacy, financial socialization, and self-control on the financial behavior of Generation Z in Indonesia. Data were collected from 161 valid respondents belonging to Generation Z and analyzed using the Structural Equation Modeling–Partial Least Squares (SEM-PLS) approach with the assistance of SmartPLS 4.0. The results demonstrate that financial literacy, financial socialization, and self-control jointly exert a significant influence on financial behavior. The results show that financial socialization has a positive and significant impact, highlighting the critical role of family, peers, and educational environments in shaping financial habits. Moreover, self-control emerges as the most influential factor, emphasizing its importance in enabling individuals to delay gratification, resist impulsive consumption, and make long-term-oriented financial decisions in a highly digitalized consumer environment. Overall, the findings suggest that improving the financial well-being of Generation Z requires an integrated approach that extends beyond conventional financial education by strengthening supportive social contexts and enhancing psychological capacities, particularly self-regulation in financial decision-making.