The Phenomenon of Financial Literacy, Fear of Missing out (FOMO) and Hedonistic Lifestyle Among Gen Z in Central Java and Their Impact on Financial Behavior

Abstract

The penetration of digital finance has heightened risks regarding consumer behavior and debt accumulation among Generation Z. This issue is exacerbated by the national gap between financial literacy and inclusion, as well as significant digital-age pressures specifically FOMO and hedonistic lifestyles—that undermine the rationality of their daily financial allocation. This study aims to analyze the influence of financial literacy, FOMO, and hedonistic lifestyles on the financial management behavior of Generation Z in Central Java.The study employs a quantitative causal approach. The population consists of Generation Z in Central Java, with a sample of 115 respondents selected via purposive sampling. Data analysis was conducted using Partial Least Squares-Structural Equation Modeling (PLS-SEM) with SmartPLS 4 software.The results indicate that financial literacy, FOMO, and hedonistic lifestyles have a positive and significant impact on financial behavior.This research contributes empirical evidence within the framework of Behavioral Finance Theory to explain the determinants of financial behavior among Generation Z in Central Java. The broad scope of the study allows for generalizability. Consequently, efforts to improve financial management behavior should be primarily directed toward strengthening financial literacy.