Towards the financial well-being of Gen-Z: A study at Tri Ratna School – Jakarta with Locus of Control as a mediation variable

https://doi.org/10.35912/gabs.v1i2.3390
Published: Sep 18, 2024

Abstract:

Purpose: This study aimed to analyze the influence of financial literacy and lifestyle on financial well-being among Generation Z (Gen-Z), with the locus of control as a mediating variable. In this study, the locus of control refers to an individual's belief in internal and external influences in decision-making or taking action, which is expected to mediate the relationship between financial literacy, lifestyle, and financial well-being.

Research methodology: The data used in this study were collected through a survey of Gen-Z students, teachers, and staff members at Tri Ratna School-Jakarta, aged between 16 and 27 years. The analysis was conducted using Partial least squares structural equation modeling (PLS-SEM) was used to test the relationships between variables.

Results: This study’s findings are expected to provide insights into the importance of financial literacy and the influence of lifestyle in shaping the financial well-being of Gen Z, as well as the role of locus of control in strengthening or weakening these influences. The findings are expected to serve as a reference for financial education and the development of more effective policies to improve the financial well-being of younger generations in Indonesia, particularly at Tri Ratna School-Jakarta.

Conclusions: Financial well-being among Gen-Z is determined not only by literacy and lifestyle but also by the locus of control, which functions as a psychological driver of effective financial behavior. Integrating financial education with self-control and lifestyle management can improve financial resilience.

Limitations: This study was limited to one institution in Jakarta, which may not represent a broader population. It also relies on self-reported data that may be biased.

Contribution: This research contributes to financial education by highlighting the importance of the locus of control and lifestyle choices in shaping Gen’s financial well-being, providing insights for schools and policymakers.

Keywords:
1. Financial Literacy
2. Financial Well-being
3. Lifestyle
4. Locus of Control
Authors:
1 . Liny Liny
Universitas Kristen Krida Wacana, Indonesia
2 . Eka Desy Purnama
Universitas Kristen Krida Wacana, Indonesia
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How to Cite
Liny, L., & Purnama, E. D. . (2024). Towards the financial well-being of Gen-Z: A study at Tri Ratna School – Jakarta with Locus of Control as a mediation variable. Global Academy of Business Studies, 1(2), 103–113. https://doi.org/10.35912/gabs.v1i2.3390
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Issue & Section
Vol. 1 No. 2 (2024): October
Articles
References

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    Budiman, R. A., Tanuwijaya, H., Candraningrat, C., & Supriyanto, A. (2024). The Effect Financial Knowledge, Financial Attitude, and Income on Financial Behavior Through Locus of Control in Students. JMM17: Jurnal Ilmu ekonomi dan manajemen, 11(1), 42-57.

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    Khisbulloh, W., & Yudoko, G. (2025). OEE improvement through reducing start up duration using lean Six Sigma methodology in manufacturing. Global Academy of Business Studies, 1(1), 37-53. doi:https://doi.org/10.35912/gabs.v1i1.3382

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    Shankar, N., Vinod, S., & Kamath, R. (2022). Financial well-being–A Generation Z perspective using a Structural Equation Modeling approach. Investment Management & Financial Innovations, 19(1), 32. doi:https://doi:10.21511/imfi.19(1).2022.03

    Sulistiowati, R., Adisa, A. F., & Caturiani, S. I. (2021). Stakeholder synergy for sustainable tourism. Journal of Sustainable Tourism and Entrepreneurship, 3(1), 53-60. doi:https://doi.org/10.35912/joste.v3i1.1236

    Syaliha, A., Sutieman, E., Pasolo, M. R., & Pattiasina, V. (2022). The Effect of Financial Literacy, Life Style, Financial Attitude and Locus of Control to Financial Management Behavior. Public Policy, 3(1), 52-71.

    Udodiugwu, M. I., Nwosu, C. C., Obiakor, U. J., & Nwumeh, U. J. (2024). Motivation through indirect compensation: Evaluating employee performance in Enugu State Civil Service Commission. Annals of Human Resource Management Research, 4(2), 79-96. doi:https://doi.org/10.35912/ahrmr.v4i2.2320

    Widiyanto, W., Lindiyatmi, P., & Yulianto, A. (2022). Locus of control as a mediating variable for the factors influencing consumptive behavior among students. Innovative marketing, 18(4), 97-109.

    Zulfaris, M. D., Mustafa, H., Mahussin, N., Alam, M. K., & Daud, Z. M. (2020). Students and money management behavior of a Malaysian public university. The Journal of Asian Finance, Economics and Business, 7(3), 245-251.

  1. Arfah, L. (2024). Analisis Tingkat Literasi Finansial Mahasiswa Manajemen Bisnis Syariah di STAI Al-Kifayah Riau: Konsep, Sikap, dan Perilaku. Bukhori: Kajian Ekonomi dan Keuangan Islam, 4(1), 59-69. doi:https://doi.org/10.35912/bukhori.v4i1.3326
  2. Arifin, A. Z., Anastasia, I., Siswanto, H., & Henny, H. (2017). The effects of financial attitude, locus of control, and income on financial behavior. Paper presented at the International conference on economic, business, and accounting.
  3. Azzam, M. J., Alqudah, A. M. M., Aryan, L. A., & Abu Haija, A. A. (2024). Empirical Analysis of the Link Between Financial Literacy and Personal Financial Decision of Gen Z. In S. Reyad & A. Hannoon (Eds.), Frontiers of Human Centricity in the Artificial Intelligence-Driven Society 5.0 (pp. 179-192). Cham: Springer Nature Switzerland.
  4. Brüggen, E. C., Hogreve, J., Holmlund, M., Kabadayi, S., & Löfgren, M. (2017). Financial well-being: A conceptualization and research agenda. Journal of Business Research, 79, 228-237. doi:https://doi.org/10.1016/j.jbusres.2017.03.013
  5. Budiman, R. A., Tanuwijaya, H., Candraningrat, C., & Supriyanto, A. (2024). The Effect Financial Knowledge, Financial Attitude, and Income on Financial Behavior Through Locus of Control in Students. JMM17: Jurnal Ilmu ekonomi dan manajemen, 11(1), 42-57.
  6. Budiyanto, A., Mujib, A., Al Arif, M. N. R., & Prasetyowati, R. A. (2024). Factors affecting financial well-being: the mediating role of financial behavior towards religiosity and anti-consumption lifestyle–evidence from Indonesia. Investment Management & Financial Innovations, 21(3), 187. doi:https://DOI:10.21511/imfi.21(3).2024.16
  7. Gunawan, A., Mukmin, Wahyuni, S. F., & Sari, M. (2023). Factors affecting financial management behavior of Paylater users in Indonesia: Examining the moderating role of locus of control. Retrieved from
  8. Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2022). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM): Sage Publishing.
  9. Hidayat, F. A., & Paramita, V. S. (2024). Analisis Pengaruh Gaya Hidup, Literasi Keuangan dan Inklusi Keuangan terhadap Perilaku Keuangan Generasi Z di Jawa Barat. Journal of Management and Bussines (JOMB), 6(3), 1143-1152.
  10. Kerihi, A. S. Y. (2025). The effect of human resources competency, individual morality and the control environment on village government accountability in managing village fund allocation in Kupang Tengah District, Kupang District. Global Academy of Business Studies, 1(1), 23-35. doi:https://doi.org/10.35912/gabs.v1i1.3381
  11. Khisbulloh, W., & Yudoko, G. (2025). OEE improvement through reducing start up duration using lean Six Sigma methodology in manufacturing. Global Academy of Business Studies, 1(1), 37-53. doi:https://doi.org/10.35912/gabs.v1i1.3382
  12. Kohnová, L., Papula, J., & Salajová, N. (2021). Generation Z: Education in the world of digitization for the future of organizations. Paper presented at the INTED2021 Proceedings.
  13. Laga, A., & Hizazi, A. (2023). The Effect of Financial Literacy, Financial Attitude, Locus of Control, and Lifestyle on Financial Management Behavior (Case Study on Undergraduate Accounting Study Program Students Faculty of Economics and Business Jambi University). Indonesian Journal of Economic & Management Sciences, 1(4), 459-480.
  14. Luis, L., & Nuryasman, M. (2020). Pengaruh pengendalian diri, literasi serta perilaku keuangan terhadap kesejahteraan keuangan. Jurnal Manajerial dan Kewirausahaan, 2(4), 994-1004. doi:https://doi.org/10.24912/jmk.v2i4.9883
  15. Madini, R., Hendri, M. I., Malini, H., Giriati, G., & Yakin, I. (2023). The effect of financial literacy and love of money on the financial management behavior of generation z. International Journal of Applied Finance and Business Studies, 11(3), 552-563.
  16. Mutlu, Ü., & Özer, G. (2021). The moderator effect of financial literacy on the relationship between locus of control and financial behavior. Kybernetes, 51(3), 1114-1126.
  17. Putri, S., & Utama, A. A. (2024). Reliability Improvement Process Case Study: PT HMS Tbk. Jurnal Bisnis dan Pemasaran Digital, 3(2), 107-124. doi:https://doi.org/10.35912/jbpd.v3i2.4512
  18. Razen, M., Huber, J., Hueber, L., Kirchler, M., & Stefan, M. (2021). Financial literacy, economic preferences, and adolescents’ field behavior. Finance Research Letters, 40, 101728.
  19. Restu, A., Gamayuni, R. R., & Yuliansyah, Y. (2024). Adopting an enterprise resource planning system in village government. Journal of Governance and Accountability Studies, 4(1), 1-17.
  20. Schenarts, P. J. (2020). Now Arriving: Surgical Trainees From Generation Z. Journal of Surgical Education, 77(2), 246-253. doi:https://doi.org/10.1016/j.jsurg.2019.09.004
  21. Shankar, N., Vinod, S., & Kamath, R. (2022). Financial well-being–A Generation Z perspective using a Structural Equation Modeling approach. Investment Management & Financial Innovations, 19(1), 32. doi:https://doi:10.21511/imfi.19(1).2022.03
  22. Sulistiowati, R., Adisa, A. F., & Caturiani, S. I. (2021). Stakeholder synergy for sustainable tourism. Journal of Sustainable Tourism and Entrepreneurship, 3(1), 53-60. doi:https://doi.org/10.35912/joste.v3i1.1236
  23. Syaliha, A., Sutieman, E., Pasolo, M. R., & Pattiasina, V. (2022). The Effect of Financial Literacy, Life Style, Financial Attitude and Locus of Control to Financial Management Behavior. Public Policy, 3(1), 52-71.
  24. Udodiugwu, M. I., Nwosu, C. C., Obiakor, U. J., & Nwumeh, U. J. (2024). Motivation through indirect compensation: Evaluating employee performance in Enugu State Civil Service Commission. Annals of Human Resource Management Research, 4(2), 79-96. doi:https://doi.org/10.35912/ahrmr.v4i2.2320
  25. Widiyanto, W., Lindiyatmi, P., & Yulianto, A. (2022). Locus of control as a mediating variable for the factors influencing consumptive behavior among students. Innovative marketing, 18(4), 97-109.
  26. Zulfaris, M. D., Mustafa, H., Mahussin, N., Alam, M. K., & Daud, Z. M. (2020). Students and money management behavior of a Malaysian public university. The Journal of Asian Finance, Economics and Business, 7(3), 245-251.