The space between knowing and doing: Inside the financial lives of Indonesian Gen Z

Greater perceived financial knowledge does not always coincide with more responsible financial behavior, leaving unclear which psychological pathways account for their relationship. Drawing on complementary insights from Social Cognitive Theory and the Theory of Planned Behavior, this study compares an efficacy-based pathway through financial self-efficacy (FSE) with an evaluative pathway through financial attitude (FA). Data from a non-probability online sample of 1433 Indonesian Generation Z respondents aged 17 years and older were analyzed using partial least squares structural equation modeling. Demographic controls and post hoc segmentation were used to examine the stability of the aggregate pattern and potential unobserved heterogeneity. Perceived financial knowledge was positively associated with both FSE and FA, yet only FA was positively associated with financial behavior. Accordingly, the indirect association through FA was supported, whereas the direct knowledge–behavior relationship and the indirect association through FSE were not. These conclusions remained unchanged after demographic characteristics were considered. Exploratory segmentation indicated contrasting directions for several direct relationships involving perceived knowledge and FSE, while the positive FA–behavior relationship remained directionally consistent across the alternative segment solutions. These findings show that efficacy and attitude are not interchangeable pathways and that the knowledge–behavior relationship is mechanism-specific and potentially heterogeneous. They also locate a remaining theoretical black box: when, for whom, and under what conditions perceived financial knowledge and financial self-efficacy are associated with responsible financial behavior.