THE INFLUENCE OF FINANCIAL LITERACY ON FINANCIAL MANAGEMENT BEHAVIOR WITH FINANCIAL SELF-EFFICACY AS A MEDIATING VARIABLE AMONG GEN Z IN JEPARA REGENCY

Abstract

The low level of financial management behavior among Generation Z (Gen Z) in Jepara Regency remains a problem that requires attention. The majority of Gen Z are not yet able to prepare a budget, rarely save, and lack both emergency funds and interest in investing. This condition indicates the importance of financial literacy and psychological factors, such as financial self-efficacy, in shaping better financial management behavior. This study aims to analyze the influence of financial literacy on financial management behavior with financial self-efficacy as a mediating variable among Gen Z in Jepara Regency. This research is quantitative in nature. The population consists of Gen Z in Jepara Regency, with a sample of 112 respondents determined using purposive sampling. Data were collected through questionnaires with indicators of financial literacy, financial self-efficacy, and financial management behavior. The data were analyzed using regression testing with a mediation approach. The analysis technique applied was Structural Equation Modeling (SEM) with the help of SmartPLS software version 3.29. The results of the study show that financial literacy has a positive and significant effect on financial self-efficacy and also positively influences the financial management behavior of Gen Z in Jepara Regency. Financial self-efficacy was also found to have a positive effect on financial management behavior. Furthermore, financial self-efficacy was proven to mediate the effect of financial literacy on financial management behavior. This emphasizes that good financial knowledge must be accompanied by self-confidence in order to be implemented in daily financial behavior.