LIFESTYLE AND INCOME: DETERMINANTS OF GENERATION Z'S FINANCIAL MANAGEMENT

Marcelina Estuningrum; Cong Cong Sin; Christina Heti Tri Rahmawati

doi:10.24071/icebmr.v3i1.135

Authors

Marcelina Estuningrum Sanata Dharma University Author
Cong Cong Sin Sanata Dharma University Author
Christina Heti Tri Rahmawati Sanata Dharma University Author

DOI:

https://doi.org/10.24071/icebmr.v3i1.135

Keywords:

Lifestyle, Income, Financial Management, Generation Z

Abstract

Financial management is important to overcome financial problems. Generation Z is a generation that is responsive to technological developments, so it has a consumerist lifestyle and has an impact on behavior that is less wise in managing finances. Apart from that, the greater income generation Z gets from parents' pocket money, scholarships and work wages has an impact on financial management. Therefore, generation Z has responsible behavior in spending so they avoid debt. The determinant of financial management which is the research objective is the influence of lifestyle and income on the financial management of generation Z students of the Management Study Program at Sanata Dharma University (USD). The research sample was active students of the USD Management Study Program class of 2021 and had taken Financial Management courses, totaling 89 respondents. Multiple linear regression with the SPSS 25 application as a data analysis technique. The research results show that lifestyle and income have a positive effect on financial management of Generation Z students of the USD Management Study Program. The implication is that Generation Z has a frugal lifestyle and is responsible for their income, so they have wise behavior in managing finances.

Downloads

Download data is not yet available.

References

Aji, R. (2023), Marak Anak Muda Terlilit Utang Pinjol, Data Terbaru Ngeri, http://www.cnbcindonesia.com/market/20230909140936-17-470970/marak-anakmuda-terlilit-utang-pinjol-data-terbaru-ngeri. [April 6, 2024].

Ajzen, I. (2020), “The theory of planned behavior: Frequently asked questions”, Human Behavior and Emerging Technologies, Vol. 2 No. 4, pp. 314-324. https://doi.org/10.1002/hbe2.195

Amirul, S. M., Che Azmi, A. and Jaafar, N. I. (2022), "Representation and value relevance of net income versus comprehensive income on millennials’ financial decisionmaking", International Journal of Web Information Systems, Vol. 18 No. 4, pp. 197-216. https://doi.org/10.1108/IJWIS-10-2021-0117

Bapat, D. (2022), "Exploring the relationship between lifestyle, digital financial element and digital financial services experience", International Journal of Bank Marketing, Vol. 40 No. 2, pp. 297-320. https://doi.org/10.1108/IJBM-12-2020-0575

Hazari, S. and Sethna, B. N. (2023), “A Comparison of Lifestyle Marketing and Brand Influencer Advertising for Generation Z Instagram Users”, Journal of Promotion Management, Vol. 29 No. 4, pp. 491-534. https://doi.org/10.1080/10496491.2022.2163033

Hernandez-de-Menendez, M., Escobar Díaz, C.A and Morales-Menendez, R. (2020), “Educational experiences with Generation Z”, International Journal on Interactive Design and Manufacturing, Vol. 14, pp. 847–859. https://doi.org/10.1007/s12008-020-00674-9

Jayani, D. H. (2021), Proporsi Populasi Generasi Z dan Milenial Terbesar di Indonesia, https://databoks.katadata.co.id/datapublish/2021/05/24/proporsi-populasi-generasi-zdan-milenial-terbesar-di-indonesia. [April 10, 2024].

Johnson, D., Rodwell, J. and Hendry, T. (2021), “Analyzing the Impacts of Financial Services Regulation to Make the Case That Buy-Now-Pay-Later Regulation is Failing”, Sustainability, Vol. 13 No. 4, pp. 1992. https://doi.org/10.3390/su13041992

Katusiime, L. (2021), “COVID 19 and Bank Profitability in Low Income Countries: The Case of Uganda”, Journal of Risk and Financial Management, Vol. 14 No. 12, pp. 588-598. https://doi.org/10.3390/jrfm14120588

Kamalian, S., Didarloo, A., Khalkhali, H. R. and Maheri, M. (2023), “A Study on the effect of lifestyle educational intervention based on the theory of planned behavior on promoting quality of life of middle-aged-women”, Journal of Women & Aging, Vol. 35 No. 6, pp. 573-588. doi.org/10.1080/08952841.2023.2202658

Kenney, B. G., Firth, C. and Gathergood, J. (2023), “Buy Now Pay Later (BNPL) on your cerdit card”, Journal of Behavioral and Experimental Finance, Vol. 37, pp. 100788. https://doi.org/10.1016/j.jbef.2023.100788

Kurniasari, F. and Utomo, P. (2023), “The Key Determinants of Financial Risk Tolerance Among Gen-Z Investors: Propensity for Regret, Propensity for Overconfidence and Income Level”, Eurasian Studies in Business and Economics, Vol. 25, pp. 289-298. https://doi.org/10.1007/978-3-031-36286-6_17

Manz, F. (2019), “Determinants of non-performing loans: What do we know? A systematic review and avenues for future research”, Management Review Quarterly, Vol. 69, pp. 351–389. https://doi.org/10.1007/s11301-019-00156-7

Miller, Z. D. (2017), “The Enduring Use of the Theory of Planned Behavior”, Human Dimensions of Wildlife, Vol. 22 No. 6, pp. 583-590. https://doi.org/10.1080/10871209.2017.1347967

Nguyen, C. T., Vu, N. T., Vo, H. D. and Ha, T. D. (2019), “ Financial Development and Income Inequality in Emerging Markets: A New Approach”, Journal of Risk and Financial Management, Vol, 12 No. 4, pp. 173. https://doi.org/10.3390/jrfm12040173

O’Neill, A., Dias, A., Patuleia, M. and Pereira, L. (2022), “Financial Objectives and Satisfaction with Life: A Mixed-Method Study in Surf Lifestyle Entrepreneurs”, Social. Sciences, Vol. 11 No. 12, pp. 555-567. https://doi.org/10.3390/socsci11120555

Ozili, P. K. (2017), "Bank earnings management and income smoothing using commission and fee income: A European context", International Journal of Managerial Finance, Vol. 13 No. 4, pp. 419-439. https://doi.org/10.1108/IJMF-11-2016-0213

Oztekin, C., Teksöz, G., Pamuk, S., Sahin, E. and Kilic, D. S. (2017), “Gender perspective on the factors predicting behavior: Implications from the theory of planned behavior”, Waste Management, Vol. 62, pp. 290-302. https://doi.org/10.1016/j.wasman.2016.12.036

Pangestu, S., Karnadi, E. B. and Foroudi, P. (2020), “The effects of financial literacy and materialism on the savings decision of generation Z Indonesians”, Cogent Business & Management, Vol. 7 No. 1, pp. 250-261. https://doi.org/10.1080/23311975.2020.1743618

Rahayu, C. W. E. and Rahmawati, C. H. T. (2019), “The Influence of Financial Literacy on The Personal Financial Management of Government Employees”, INOVASI: Jurnal Ekonomi Keuangan dan Manajemen, Vol. 15 No. 2, pp. 128-134. https://doi.org/10.30872/jinv.v15i2.5421

Rahayu, C. W. E. and Rahmawati, C. H. T. (2021), “The Determinant factors of personal management of Indonesian migrant workers in Hongking”, MIX: Jurnal Ilmiah Manajemen, Vol. 11 No. 1, pp. 47-63, 11 (1). https://publikasi.mercubuana.ac.id/index.php/Jurnal_Mix/article/view/8632/pdf

Rai, K., Dua, S. and Yadav, M. (2019), “Association of Financial Attitude, Financial Behaviour and Financial Knowledge Towards Financial Literacy: A Structural Equation Modeling Approach”, FIIB Business Review, Vol. 8 No. 1, pp. 201-212. https://doi.org/10.1177/2319714519826651

Rizzo, T. L. and Columna, L. (2020), Theory of planned behavior, Routledge Handbook of Adapted Physical Education, England, UK.

Sconti, A. (2022), “Digital vs in-person financial education: What works best for Generation Z?”. Journal of Economic Behavior & Organization, Vol. 194, pp. 300-318. https://doi.org/10.1016/j.jebo.2021.12.001

Seyfi, S., Sharifi-Tehrani, M., Hall, C. M. and Vo-Thanh, T. (2023), “Exploring the drivers of Gen Z tourists’ buycott behaviour: a lifestyle politics perspective”, Journal of Sustainable Tourism, Vol. 32 No. 6, pp. 1-19. https://doi.org/10.1080/09669582.2023.2166517

Strydom, W. F. (2018), “Applying the Theory of Planned Behavior to Recycling Behavior in South Africa”, Recycling, Vol. 3 No. 3, pp. 43. https://doi.org/10.3390/recycling3030043

Sussman, R. and Gifford, R. (2019), “Causality in the Theory of Planned Behavior”, Personality and Social Psychology Bulletin, Vol. 45 No. 6, pp. 920-933. https://doi.org/10.1177/0146167218801363

Sugiyono. (2018), Metode Penelitian Kuantitatif, Kualitatif, dan R & D, Penerbit Alfabeta, Bandung.

Sanata Dharma University. (2023), Laporan Tahunan Rektor: Dies Natalis ke-68 Sanata Dharma, Sanata Dharma University, Yogyakarta.

Squires, S. and Ho, H. W. L. (2023), "Generation Z’s perceptions and attitudes toward debt: a case study of young consumers in rural Michigan, USA", Young Consumers, Vol. 24 No. 2, pp. 133-148. https://doi.org/10.1108/YC-07-2022-1567

Tee, C. M. (2020), “Political connections and income smoothing: Evidence of institutional investors’ monitoring in Malaysia”, Journal of Multinational Financial Management, Vol. 55, pp. 100626. https://doi.org/10.1016/j.mulfin.2020.100626

Wang, Y., Weng, F. and Huo, X. (2023), “Can Digital Finance Promote Professional Farmers’ Income Growth in China?—An Examination Based on the Perspective of Income Structure”, Agriculture, Vol. 13 No. 5, pp. 1103. https://doi.org/10.3390/agriculture13051103

Zhu, D. (2021), "Consumption and Lifestyle of the Middle Income Group”, Research Series on the Chinese Dream and China’s Development Path, Vol. 1, pp. 109-128. https://doi.org/10.1007/978-981-16-1464-4_7