A Comparison of Financial Management Behavior Between Millennials and Generation Z: The Role of Financial Literacy and Lifestyle

Cecep Setyadi

doi:10.30640/jmcbus.v4i2.7620

Authors

Cecep Setyadi STIE Manajemen Bisnis Indonesia

DOI:

https://doi.org/10.30640/jmcbus.v4i2.7620

Keywords:

Consumptive Lifestyle, Financial Literacy, Financial Management Behavior, Generation Z, Millennials

Abstract

This study aims to examine the effects of financial literacy and consumptive lifestyle on financial management behavior and compare the strength of these effects between Millennials and Generation Z in West Java. The study employed a quantitative approach with a comparative and explanatory design using a cross-sectional survey of 100 respondents, comprising 50 Millennials and 50 Generation Z participants selected through purposive and quota sampling. Data were collected using a five-point Likert-scale questionnaire and analyzed through partial least squares structural equation modeling, the Measurement Invariance of Composite Models procedure, and Multi-Group Analysis. The results demonstrate that financial literacy has a positive and significant effect on financial management behavior, whereas consumptive lifestyle has a negative and significant effect. The influence of financial literacy is stronger among Millennials, while the adverse effect of consumptive lifestyle is stronger among Generation Z. These findings imply the need for generation-specific financial education programs, emphasizing long-term financial planning for Millennials and digital consumption control, responsible use of deferred-payment services, and early saving habits for Generation Z.

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