Gen Z’s Financial Literacy and Behavior

UMN Consulting, Jakarta – Gen Z, the most significant population cohort with approximately 2,5 billion people worldwide, are believed to be the most financially affected generation if a financial crisis happens next year. In fact, according to the Indonesian Financial Services Authority (Otoritas Jasa Keuangan, OJK), financially wise, Gen Z was already severely hit during the peak of COVID-19 Pandemic. 

While the Indonesian government is pretty confident that the country is in a good position to face the potential financial crisis,it is still a question mark if Gen Z are financially literate to face its impact. Gen Z are often characterized by a hedonic lifestyle, a low financial literacy index, and difficulties in choosing a suitable investment. However, the truth could be different from the general assumption as many factors affect financial literacy and behavior. 

In response to that, our latest research explored every element related to Gen Z’s financial literacy and behavior. Our main objective is to understand Gen Z’s financial decisions, reasoning, preferences, and every element that affects those matters. Hundreds of Indonesian Gen Z were involved in that research and came from various regions.

Talking about the regional aspect, we also explored the distribution of financial infrastructure and resources across Indonesia during the research process. We argue that unequal financial infrastructure and resource distribution could lead to unequal financial literacy too. For example, with easier access to economic knowledge, Gen Z, hypothetically, tend to be more careful when making financial decisions, even for information from finfluencer.

All of the data that we got from the research are presented in six sections in this report. Those sections are Investment Instrument, ICT Usage, Financial Knowledge, Financial Skill, Financial Attitude, Financial Literacy, and last but not least Financial Behavior. Each section presents every necessary information to understand the financial aspect of Gen Z.