This study examines how digital financial literacy and social media usage influence financial self-efficacy and saving behavior among Generation Z in Indonesia, with an emphasis on extending theoretical insights from the technology acceptance model (TAM), unified theory of acceptance and use of technology (UTAUT) and social cognitive theory (SCT) to financial decision-making contexts.
A quantitative approach was employed using purposive and snowball sampling to collect data from 486 Generation Z participants. Data were gathered through a structured online questionnaire and analyzed using partial least squares structural equation modeling (PLS-SEM).
The results indicate that both digital financial literacy and social media usage significantly enhance financial self-efficacy, which in turn positively affects saving behavior. Social media usage did not have a direct effect on saving behavior but operated indirectly via psychological empowerment.
Educational institutions, financial service providers and policymakers should integrate digital financial literacy programs and leverage social media to enhance financial self-efficacy, thereby promoting effective saving behaviors among Generation Z.
This study contributes to the literature on Generation Z's financial behavior by establishing a framework connecting digital financial literacy and social media usage to financial self-efficacy and saving behavior. It advances theory by explicitly linking TAM, UTAUT and SCT to digital financial contexts and positions financial self-efficacy as a central mediating mechanism, while offering actionable guidance for practice.
