The Influence of Financial Knowledge and Locus of Control on Financial Management Behavior with Financial Literacy as an Intermediary : A Case Study on Generation Z Students Using ShopeePay on Java Island

This study explores the effects of financial knowledge and locus of control on financial management behavior, with financial literacy as a mediating variable, among Generation Z students using ShopeePay in Java Island. Involving 387 students, the research employs SEM-PLS 3 for data analysis and utilizes a snowball sampling method for questionnaire distribution. The findings reveal that both financial knowledge and locus of control significantly influence financial literacy and financial management behavior. Financial literacy mediates the relationship between financial knowledge and financial management behavior, enhancing the impact of financial knowledge on financial decision-making. Similarly, financial literacy mediates the relationship between locus of control and financial management behavior, reinforcing the effect of locus of control on effective financial management. The results indicate that while both financial knowledge and locus of control positively affect financial management behavior, the presence of financial literacy amplifies these effects. The study contributes to understanding how financial knowledge and locus of control, supported by financial literacy, influence financial management practices among students, offering insights into the role of financial literacy in bridging these relationships.