From Access to Action: How Social Influence and Financial Goals Determine Gen Z’s Saving and Spending Choices

Abstract

Background: Growing up in the digital age with easy access to technology, Generation Z exhibits financial behaviors that differ from those of previous generations. This ease of access does not always translate into sound saving and spending habits, necessitating a deeper understanding.
Purpose: To investigate the influence of access to financial instruments, social influence, and financial goals on the saving and spending behavior of Generation Z in Indonesia.
Design/methodology/approach: This research was developed based on the Theory of Planned Behavior (TPB). Quantitative methods were used for a survey approach aimed at Generation Z, who have saved and spent. PLS-SEM was used to test the hypotheses, accounting for data validity and reliability.
Finding/Result: Research shows that financial goals influence saving behavior, whereas access to financial tools and social influence have no effect. Meanwhile, access to financial tools, social influence, and financial goals influence Generation Z's spending behavior.
Conclusion: This study provides an overview of the literature on Generation Z financial behavior by integrating variables on financial tool access, social influence, and financial goals into a single model to explain Generation Z's saving and spending behavior. The results of this study are expected to serve as a basis for fintech service providers, financial institutions, and policymakers in designing effective strategies to encourage healthy financial behavior among Generation Z.
Originality/value (State of the art): These findings provide insights for other financial institutions, such as marketers, in designing products and services that align with the characteristics of Generation Z in the digital era.
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Keywords: access financial tools, social influence, financial goals, saving behavior, spending behavior