Analysis of the Influence of Financial Literacy, Income, and Lifestyle on Saving Habits of Generation Z

Mulkan Ritonga; Rahma Muti’ah; Ade Parlaungan Nasution

doi:10.59890/ijmbi.v3i1.287

Authors

Mulkan Ritonga University of Labuhanbatu
Rahma Muti’ah University of Labuhanbatu
Ade Parlaungan Nasution University of Labuhanbatu

DOI:

https://doi.org/10.59890/ijmbi.v3i1.287

Keywords:

Financial literacy, Income, Lifestyle, Saving Habits

Abstract

Saving is a critical financial practice that showcases an individual's preparedness to tackle future demands and mitigate financial pitfalls. Nevertheless, not everyone possesses strong saving practices. Utilizing a quantitative descriptive research approach, in which data is gathered through online surveys, this study seeks to evaluate the impact of financial education, earnings, and lifestyle on saving behaviors. The participants in this research are members of Generation Z employed in various companies across Labuhanbatu Regency, including private firms and BUMD/BUMN entities, with sample selection conducted through purposive random sampling utilizing the Lime show formula or other relevant methodologies. The findings reveal that the financial education, earnings, and lifestyle of Generation Z significantly contribute to their saving practices both independently and collectively. A solid grasp of financial principles, earnings, and lifestyle empowers individuals to make more informed financial choices, particularly regarding saving. Nevertheless, while increased earnings can enhance their capacity to save, their inclination to conform to trends and adopt consumerist lifestyles may inhibit their ability to allocate funds for savings. Thus, it is crucial for Generation Z to elevate their financial education and embrace a more economical lifestyle to cultivate robust saving habits and secure their financial future.

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