Gen Z's Financial Future: Social Media, Literacy, And Well-Being In Indonesia
Introduction/Main Objectives: Growing up in the digital era amidst economic uncertainty has significantly shaped Generation Z’s financial behavior. Social media serves as a primary channel through which Gen Z acquires financial literacy (knowledge, attitudes, and behaviors) that guide their investment and money management decisions. However, the prevalence of misinformation raises concerns that the pursuit of financial well-being through such platforms may instead result in financial setbacks.
Background Problems: Rising living costs, inflation, and limited job opportunities intensify the urgency for Gen Z to strengthen their financial preparedness. Their reliance on social media prompts a critical question: does this exposure foster sustainable financial stability or encourage short-term, impulsive decisions? To answer this, the study examines how social media exposure affects Indonesian Gen Z's financial well-being with financial literacy as the mediators.
Novelty: While prior studies have explored the influence of social media on financial literacy, its link to financial well-being remains underexplored. This study bridges the gap by integrating social media exposure and financial literacy to provide new insights into how these factors shape the financial well-being of Indonesian Gen Z.
Research Methods: Using a quantitative approach with online questionnaires, data were collected from 122 Indonesian Gen Z respondents (born 1997–2007) who actively engage with financial content on social media. The data were analyzed using PLS-SEM.
Findings/Results: The findings reveal that social media exposure significantly enhances financial knowledge, which indirectly improves financial well-being through positive financial attitudes and disciplined financial behaviors.
Conclusion: The study demonstrates that social media influences financial well-being primarily through the indirect effects of financial literacy. Social media serves as an effective digital platform for learning, but knowledge alone is insufficient without having the right attitudes and behaviors.
Implementation Potential: The findings offer practical insights for policymakers, educators, and financial influencers to develop effective financial education programs and digital content. These should not be limited to providing knowledge, but also cultivate positive financial attitudes and encourage disciplined financial practices, promoting responsible and sustainable behaviors among Gen Z.