Effect of Financial Factors on Saving Decision of Z Generation

Abstract

Aims: This study aims to analyze the influence of financial literacy, materialism, financial behavior, and financial attitude on saving decisions in Generation Z. Study Design: This study uses a quantitative approach and purposive sampling technique. The sample used was 105 respondents who met the requirements. Place and Duration of Study: This study uses a sample, namely in generation Z in Banyumas Regency and the research was conducted within the time frame of January 2024 to June 2024. Methodology: This research method uses the SEM (Structural Equation Modeling) analysis method with the Partial Least Square (PLS) approach. Each hypothesis is tested to understand the relationship between the variables. To test the validity and reliability of the research using the outer model. Hypothesis testing uses the inner model. Results and Conclusion: The results of this study show that financial literacy does not affect saving decisions, materialism has a positive and significant effect on saving decisions, financial behavior has a positive and significant effect on saving decisions, and financial attitude has a positive and significant effect on saving decisions. Practical Implications: This study contributes to Generation Z in considering the factors that determine the decision to save to face financial problems in the future. The managerial and practical implications of this study provide information to stakeholders (financial institutions and government) the importance of paying attention to financial behavior and financial attitudes to improve saving behavior in Generation Z.