Navigating the Digital Financial Landscape: The Role of Financial Literacy and Digital Payment Behaviorin Shaping Financial Management Among Generation Z Student

This study investigates the mediating role of digital payment behavior in the relationship between financial literacy and financial management among Generation Z students in Indonesia.Using a purposive sampling technique, a sample of 409 actively enrolled university students was selected.Structural equation modeling (SEM) was employed to analyze the data and test the hypothesized relationships.The findings reveal that financial literacy positively influences digital payment behavior and financial management, while digital payment behavior also positively affects financial management.Moreover, digital payment behavior partially mediates the relationship between financial literacy and financial management.The study highlights the importance of integrating financial literacy and digital payment behavior to enhance students' financial management skills in the context of the Industrial Revolution 4.0.Practical implications for financial education and policy initiatives targeting Generation Z students are discussed.However, the study's limitations, such as the reliance on a single country sample and the cross-sectional design, should be considered when interpreting the results.Future research should explore the generalizability of the findings and investigate the long-term effects of financial literacy and digital payment behavior on financial well-being.