The Effect of Financial Literacy and Fintech Utilization on Personal Financial Management of Generation Z in Central Jakarta: The Role of a Consumptive Lifestyle as a Moderating Variable

Abstract

Financial literacy, fintech utilization, and a consumptive lifestyle play important roles in shaping the personal financial management of Generation Z. This study examines the moderating role of a consumptive lifestyle in the relationship between financial literacy, fintech utilization, and personal financial management among Generation Z in Central Jakarta. It adopts a behavioral finance perspective based on locus of control theory, mental accounting theory, and prospect theory, which together provide a psychological framework for understanding financial decision-making and fintech usage. A quantitative approach was applied using primary data collected through online questionnaires distributed via Google Forms. Instrument testing on 30 respondents confirmed validity, followed by a main survey involving 170 Generation Z respondents aged 18–28 who live and work in Central Jakarta. Data analysis was conducted using Structural Equation Modeling based on Partial Least Squares (SEM-PLS) with SmartPLS software. The findings show that financial literacy and fintech utilization positively influence personal financial management. However, a consumptive lifestyle does not moderate the effect of financial literacy, while it weakens the influence of fintech utilization. In conclusion, improving financial literacy and fintech use must be supported by controlling consumptive behavior to achieve optimal and sustainable financial management.