Measuring Financial Well-Being in Generation Z in Indonesia

Abstract

Financial well-being is one of the elements of wellness that everyone aspires to pursuit the quality in their life. This topic has also been raised in several countries with various research subjects. However, in Indonesia only a few studies have examined financial well-being. This research aims to examine the influence of financial knowledge, financial behaviour, financial stress and financial socialization on the financial well-being of generation Z in Indonesia. By using non-purposive sampling technique, 461 respondents who live in Indonesia were collected. All respondents completed an online survey containing valid and reliable instruments. Data were analysed using SEM technique with Smart-PLS 4.0 as a tool for hypothesis testing. The results showed that financial knowledge and financial behaviour have no effect on financial well-being, while financial stress and financial socialization have a positive and significant effect on financial well-being.