ANALYSIS OF FINANCIAL LITERACY ON FINANCIAL BEHAVIOR OF GEN Z IN KARAWANG REGENCY MEDIATED BY LIFESTYLE

Abstract

This study emphasizes the crucial role of financial literacy among Generation Z, a group currently grappling with unique financial issues in the era of rapid technological advancement and consumer-oriented lifestyles. Although Gen Z is frequently exposed to diverse financial information, many still struggle with managing their finances effectively. The research aims to assess how financial literacy influences the financial behavior of Generation Z in Karawang Regency, with lifestyle acting as a mediating factor. Employing a quantitative approach, the study used surveys to collect data from 100 purposively selected Gen Z respondents. Findings indicate that financial literacy significantly impacts both financial behavior and lifestyle. Moreover, lifestyle itself has a significant effect on financial behavior and plays a mediating role in the relationship between financial literacy and financial behavior. These results suggest that individuals with higher financial knowledge are more likely to manage their finances effectively. However, the study also reveals that many young people remain caught in consumptive habits and fail to apply sound financial practices consistently. This reinforces earlier research showing that financial literacy alone may not be sufficient to drive responsible financial behavior. In addition, the study notes that a hedonistic lifestyle—focused on short-term gratification—can undermine wise financial decisions. Therefore, improving financial outcomes among Generation Z requires not only enhancing financial knowledge but also fostering awareness of the importance of a balanced, mindful lifestyle. Promoting both financial education and lifestyle discipline is essential to support healthier financial behaviors in the long term.