Financial behavior drives Generation Z financial well-being

The issue of financial well-being is growing in Indonesia. Generation Z is recorded as a generation that faces significant challenges related to its financial adequacy. This is because Generation Z tends to have spending more than income, adopting a consumptive lifestyle, and actively taking online loans to fulfill mere pleasure. This study aims to examine the influence of financial literacy, financial risk tolerance, financial socialization, financial stress, and financial confidence on the financial behavior and financial well-being of Generation Z in Surabaya, Indonesia. The population of this study is Generation Z in Surabaya between 17 and 28 years old; and also have at least one of the four financial activities and have managed finances independently, either fully or partially in the past year. Sampling was carried out using a non-probability sampling technique with purposive sampling as a sample selection technique. The results of the 189 respondents showed that all variables had a positive effect on financial behavior, except for the variable of financial confidence. In addition, the results of the study also showed that the variables of financial risk tolerance, financial socialization, and financial behavior had a positive effect on financial well-being, but financial literacy, financial stress, and financial confidence had no effect.