Digital Financial Literacy and Inclusion on Financial Management Skills in Generation Z: Education Level as Moderation

Abstract

This study aims to analyze the influence of digital financial literacy and inclusion on financial management skills in Generation Z by using education level as a moderation variable. The research is aimed at Generation Z among students in Kediri. This research method uses a quantitative approach with data collection through surveys to students and students in Kediri. Data analysis was carried out using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results of the study show that digital financial inclusion has a significant positive influence on financial management for Generation Z. The use of digital financial services helps the younger generation to be more capable of managing finances, supported by skills and intelligence in the use of technology so as to avoid patterns of consumptive behavior. On the contrary, digital financial literacy has a significant negative influence on financial management and the level of education shows a significant negative influence in moderating the relationship between digital financial literacy and digital financial inclusion on financial management. The purpose of this research is to provide input for the government and related stakeholders to further optimize digital financial inclusion for Gen Z from the age of adolescence so that Gen Z can manage and plan their finances in the future so that they do not always behave consumpively.