ENHANCING FINANCIAL BEHAVIOR OF GENERATION Z: THE ROLE OF FINANCIAL LITERACY AND MANAGEMENT IN MEDAN CITY
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Abstract
This study aims to analyze the impact of financial literacy and financial management on the financial behavior of Generation Z in Medan City. Financial literacy is expected to enhance individuals' understanding of better financial management, which in turn can influence their financial behavior. This study uses a quantitative approach with a survey method. Data collection was done through questionnaires distributed to 200 respondents who are Generation Z in Medan City. Data analysis techniques used include multiple linear regression to test the relationships between variables. The results indicate that both financial literacy and financial management have a positive and significant impact on the financial behavior of Generation Z. These findings suggest that improving financial literacy and sound financial management can enhance responsible financial behavior among Generation Z. This study provides important implications, both in the development of theories related to financial literacy and financial behavior, and in the practical management of personal finances for young generations.
Keywords:
Financial Literacy Financial Management Financial Behaviour Generation ZReferences
Amar Sani, D. (2025). Micro Entrepreneur Capacity Building through Financial Management and Marketing Strategy Training for MSME Actors. Celebes Journal of Community Services, 1(1), 14–21.
Anwarul Islam, K. M., & Khan, M. S. (2024). The role of financial literacy, digital literacy, and financial self-efficacy in FinTech adoption. Investment Management and Financial Innovations, 21(2), 370–380. https://doi.org/10.21511/imfi.21(2).2024.30
Bashatweh, A. (2024). Activity-Based Costing as a Strategic Tool for Enhancing Key Financial Management Functions : Evidence from the Manufacturing Sector in Jordan. International Journal of Technology, Innovation and Management (IJTIM), 4(2), 1–21.
Chaniago, S., Hou, A., Harianto, A., & Nabella, S. D. (2026). Enhancing Financial Behavior through Financial Awareness and Professional Advice : Insights from the Government Subsidized Housing Program for Lecturers in Medan. Journal of Business Integration and Competitive, 2(2), 16–25. https://doi.org/10.64276/jobic.v2i2.75
Chanoago, S., Azman, N. S., Fadli, A., Djohan, D., & Hastuty, W. (2025). Empowering Generation Z : The Influence of Self-Efficacy and Digital Financial Inclusion on Financial Behavior in the Digital Era. Journal of Finance Integration and Business Independence, 1(2), 8–14. https://doi.org/10.64276/jofibi.v1i2.37
Fathur Baihaqi Marzuki, Muhamad Daffa Azriel, & Prima Naomi. (2025). The influence of gambler’s fallacy and financial literacy on generation z’s investment decisions in the digital era. Al-Kharaj: Jurnal Ekonomi, Keuangan & Bisnis Syariah, 7(1), 4709–4716. https://doi.org/10.47467/alkharaj.v7i1.6342
Khairani, R., Octora, T., Syah, D., & Ovami, D. C. (2025). How Digital Financial Literacy Shapes Sustainable Economic Performance : Evidence from Rural MSME. 50–60. https://doi.org/10.64276/ams.v1i2.55
Khairani, R., Silaban, P., & Edward, Y. R. (2025). Digital Financial Literacy and Inclusion as Determinants of Economic Sustainability Among Rural MSMEs. Proceeding of the International Conference on Management, Entrepreneurship, and Business, 2(2), 463–469.
Khairani, R., Tantri, O., & Putri, S. (2025). The Contribution of E-Commerce and Financial Management to Enhancing MSME Performance in Indonesia. Journal of Business Integration and Competitive, 2(1), 50–62. https://doi.org/10.64276/jobic.v2i1.30
Lone, U. M., & Bhat, S. A. (2024). Impact of financial literacy on financial well - being : a mediational role of financial self - efficacy. Journal of Financial Services Marketing, 1(1), 1–23.
Muat, S., & Sari, N. (2024). How do digital financial literacy , financial behavior , and skills affect financial well-being ? An Exploratory Study on Gen Z. Integrated Journal of Business and Economics, 1(1), 728–744.
Pakpahan, D. R., Handayani, C., & Sanjaya, M. (2024). The Effect of Fintech Payment and Financial Literacy on Impulsive Buying of college students in Medan City. Journal of Finance Integration and Business Independence, 1(1), 20–29.
Patrisia, D., Abror, A., Dastgir, & Al, S. et. (2023). Generation Z ’ s financial behaviour : the role of Islamic financial literacy. Digitales Archiv, 1(1), 1–22. https://doi.org/10.55188/ijif.v15i2.540.This
Rahayu, R., Juita, V., & Rahman, A. (2023). Digital Financial Literacy , Financial Behaviour , and Financial Well-being of Women ’ s in Indonesia. Proceedings of the International Conference on Entrepreneurship, Leadership and Business Innovation (ICELBI 2022), Advances in Economics, Business and Management Research 269, 1, 1–14. https://doi.org/10.2991/978-94-6463-350-4
Sagala, M. S. (2025). Peran Financial Technology ( Fintech ) terhadap Inklusi Keuangan Masyarakat Perdesaan. Applied Multidisciplinary Science, 1(1), 12–21.
Shahfaraz, M., Azad, I., Moosa, S., & Yousuf, M. (2024). Heliyon Do we really need financial literacy to access the behavioral dynamics of generation Z ? A case of Oman. Heliyon, 10(13), 1–19. https://doi.org/10.1016/j.heliyon.2024.e32739
Silalahi, H. K., Khairani, R., Tandean, C., Tanady, T., Andrian, & Nasib. (2024). The Impact of Financial Literacy , Financial Technology , and Financial Inclusion on the Financial Performance of Micro , Small , and Medium Enterprises ( MSMEs ) in the Culinary Sector in Medan. International Journal of Economics Development Research, 5(2), 979–991.
Supeni, R. E., & Sari, M. I. (2025). Comparative Study of Entrepreneurial Orientation and Financial Management Strategies in Women MSMEs. Jurnal Ilmiah Manajemen Kesatuan, 13(3), 1659–1668. https://doi.org/10.37641/jimkes.v13i3.3189
Tambunan, D., Hou, A., Nasib, Hs, W. H., & Pasaribu, D. (2024). The Role of Financial Literacy and Self-Motivation in Fostering Entrepreneurial Interest and Self-Efficacy among University Students. Journal of Logistics, Informatics and Service Science, 11(1), 136–145. https://doi.org/10.33168/JLISS.2024.0109
Tatsi, S., Afful, K., Adokoh, E., & Yeng, E. (2024). Financial and Management Challenges Affecting Educational Performance in Basic Schools. International Journal of Education and Life Sciences (IJELS), 2(6), 667–682.
Xie, X. (2023). Do young generations save for retirement? Ensuring financial security of Gen Z and Gen Y. Journal of Policy Modeling, 45(1), 644–668. https://doi.org/10.1016/j.jpolmod.2023.05.003
Amar Sani, D. (2025). Micro Entrepreneur Capacity Building through Financial Management and Marketing Strategy Training for MSME Actors. Celebes Journal of Community Services, 1(1), 14–21.
Anwarul Islam, K. M., & Khan, M. S. (2024). The role of financial literacy, digital literacy, and financial self-efficacy in FinTech adoption. Investment Management and Financial Innovations, 21(2), 370–380. https://doi.org/10.21511/imfi.21(2).2024.30
Bashatweh, A. (2024). Activity-Based Costing as a Strategic Tool for Enhancing Key Financial Management Functions : Evidence from the Manufacturing Sector in Jordan. International Journal of Technology, Innovation and Management (IJTIM), 4(2), 1–21.
Chaniago, S., Hou, A., Harianto, A., & Nabella, S. D. (2026). Enhancing Financial Behavior through Financial Awareness and Professional Advice : Insights from the Government Subsidized Housing Program for Lecturers in Medan. Journal of Business Integration and Competitive, 2(2), 16–25. https://doi.org/10.64276/jobic.v2i2.75
Chanoago, S., Azman, N. S., Fadli, A., Djohan, D., & Hastuty, W. (2025). Empowering Generation Z : The Influence of Self-Efficacy and Digital Financial Inclusion on Financial Behavior in the Digital Era. Journal of Finance Integration and Business Independence, 1(2), 8–14. https://doi.org/10.64276/jofibi.v1i2.37
Fathur Baihaqi Marzuki, Muhamad Daffa Azriel, & Prima Naomi. (2025). The influence of gambler’s fallacy and financial literacy on generation z’s investment decisions in the digital era. Al-Kharaj: Jurnal Ekonomi, Keuangan & Bisnis Syariah, 7(1), 4709–4716. https://doi.org/10.47467/alkharaj.v7i1.6342
Khairani, R., Octora, T., Syah, D., & Ovami, D. C. (2025). How Digital Financial Literacy Shapes Sustainable Economic Performance : Evidence from Rural MSME. 50–60. https://doi.org/10.64276/ams.v1i2.55
Khairani, R., Silaban, P., & Edward, Y. R. (2025). Digital Financial Literacy and Inclusion as Determinants of Economic Sustainability Among Rural MSMEs. Proceeding of the International Conference on Management, Entrepreneurship, and Business, 2(2), 463–469.
Khairani, R., Tantri, O., & Putri, S. (2025). The Contribution of E-Commerce and Financial Management to Enhancing MSME Performance in Indonesia. Journal of Business Integration and Competitive, 2(1), 50–62. https://doi.org/10.64276/jobic.v2i1.30
Lone, U. M., & Bhat, S. A. (2024). Impact of financial literacy on financial well - being : a mediational role of financial self - efficacy. Journal of Financial Services Marketing, 1(1), 1–23.
Muat, S., & Sari, N. (2024). How do digital financial literacy , financial behavior , and skills affect financial well-being ? An Exploratory Study on Gen Z. Integrated Journal of Business and Economics, 1(1), 728–744.
Pakpahan, D. R., Handayani, C., & Sanjaya, M. (2024). The Effect of Fintech Payment and Financial Literacy on Impulsive Buying of college students in Medan City. Journal of Finance Integration and Business Independence, 1(1), 20–29.
Patrisia, D., Abror, A., Dastgir, & Al, S. et. (2023). Generation Z ’ s financial behaviour : the role of Islamic financial literacy. Digitales Archiv, 1(1), 1–22. https://doi.org/10.55188/ijif.v15i2.540.This
Rahayu, R., Juita, V., & Rahman, A. (2023). Digital Financial Literacy , Financial Behaviour , and Financial Well-being of Women ’ s in Indonesia. Proceedings of the International Conference on Entrepreneurship, Leadership and Business Innovation (ICELBI 2022), Advances in Economics, Business and Management Research 269, 1, 1–14. https://doi.org/10.2991/978-94-6463-350-4
Sagala, M. S. (2025). Peran Financial Technology ( Fintech ) terhadap Inklusi Keuangan Masyarakat Perdesaan. Applied Multidisciplinary Science, 1(1), 12–21.
Shahfaraz, M., Azad, I., Moosa, S., & Yousuf, M. (2024). Heliyon Do we really need financial literacy to access the behavioral dynamics of generation Z ? A case of Oman. Heliyon, 10(13), 1–19. https://doi.org/10.1016/j.heliyon.2024.e32739
Silalahi, H. K., Khairani, R., Tandean, C., Tanady, T., Andrian, & Nasib. (2024). The Impact of Financial Literacy , Financial Technology , and Financial Inclusion on the Financial Performance of Micro , Small , and Medium Enterprises ( MSMEs ) in the Culinary Sector in Medan. International Journal of Economics Development Research, 5(2), 979–991.
Supeni, R. E., & Sari, M. I. (2025). Comparative Study of Entrepreneurial Orientation and Financial Management Strategies in Women MSMEs. Jurnal Ilmiah Manajemen Kesatuan, 13(3), 1659–1668. https://doi.org/10.37641/jimkes.v13i3.3189
Tambunan, D., Hou, A., Nasib, Hs, W. H., & Pasaribu, D. (2024). The Role of Financial Literacy and Self-Motivation in Fostering Entrepreneurial Interest and Self-Efficacy among University Students. Journal of Logistics, Informatics and Service Science, 11(1), 136–145. https://doi.org/10.33168/JLISS.2024.0109
Tatsi, S., Afful, K., Adokoh, E., & Yeng, E. (2024). Financial and Management Challenges Affecting Educational Performance in Basic Schools. International Journal of Education and Life Sciences (IJELS), 2(6), 667–682.
Xie, X. (2023). Do young generations save for retirement? Ensuring financial security of Gen Z and Gen Y. Journal of Policy Modeling, 45(1), 644–668. https://doi.org/10.1016/j.jpolmod.2023.05.003.
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