Understanding the Determinants of Financial Behavior: Evidence from Financial Literacy, Materialism, and Lifestyle among Indonesian Youth

DOI

10.2991/978-94-6239-670-8_10How to use a DOI?

Keywords

Financial Literacy; Materialism; Life Style; Behavior Finance

Abstract

This study investigates the influence of Financial Literacy, Materialism, and Lifestyle on Financial Behaviour among Generation Z in Indonesia, a demographic highly engaged in digital finance yet vulnerable to impulsive “doom spending.” Using a quantitative approach with purposive sampling, data were collected through online surveys and analyzed with SmartPLS 3 to test reliability, validity, and path relationships. The results show that Financial Literacy and Lifestyle have positive and significant effects on Financial Behaviour, while Materialism has a negative but insignificant effect. These findings suggest that financially literate individuals are more capable of managing money wisely, making informed decisions, and maintaining responsible spending habits. Likewise, a balanced and disciplined lifestyle fosters better budgeting, saving, and financial control. In contrast, materialistic tendencies do not significantly affect financial behaviour, reflecting Gen Z’s pragmatic approach toward financial management despite consumer culture exposure. The model explains 46.3% of the variance in financial behaviour, indicating moderate explanatory power. The study highlights that cognitive (literacy) and behavioral (lifestyle) factors are key drivers of sustainable financial conduct. It recommends enhancing financial education and lifestyle awareness to reduce impulsive spending and strengthen financial resilience among Indonesia’s young population. Limitations and future research directions are also discussed.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (http://creativecommons.org/licenses/by-nc-nd/4.0/), which permits any noncommercial use, sharing, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if you modified the licensed material. You do not have permission under this license to share adapted material derived from this chapter or parts of it.

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TY  - CONF
AU  - Tannia Tannia
AU  - Carunia Mulya Firdausy
AU  - Mahlia Muis
PY  - 2026
DA  - 2026/05/13
TI  - Understanding the Determinants of Financial Behavior: Evidence from Financial Literacy, Materialism, and Lifestyle among Indonesian Youth
BT  - Proceedings of the fourteenth International Conference on Entrepreneurship and Business Management 2025 (ICEBM 2025)
PB  - Atlantis Press
SP  - 117
EP  - 129
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-670-8_10
DO  - 10.2991/978-94-6239-670-8_10
ID  - Tannia2026
ER  -