BEHAVIORAL FACTORS AFFECTING PERSONAL FINANCIAL MANAGEMENT AND SAVINGS HABITS: A CASE STUDY OF GEN Z

Abstract

This study examines the influence of behavioral factors (self-control, financial anxiety, overconfidence, mental accounting, and future orientation) on personal financial management and saving behavior, with financial literacy as a moderating variable. Using PLS-SEM on diverse population data, the findings reveal that self-control, mental accounting, and future orientation positively impact financial management, while financial anxiety has a negative effect. Overconfidence also shows a positive influence, though it carries potential risks. Effective financial management significantly enhances saving behavior. Financial literacy strengthens the positive effects of self-control, overconfidence, mental accounting, and future orientation on financial management. These results highlight the critical role of behavioral finance and financial education in promoting sound financial decisions and saving habits.