Financial Management Behaviour Entrepreneur Gen-Z: How Does Income Mediate Financial Literacy?

Abstract

This study examined how income acts as a crucial link between financial knowledge, attitudes, and money management behavior among Gen Z entrepreneurs at Pelita Bangsa University. Using a survey of 180 participants and a statistical method called SEM-PLS, the researchers found that having a solid understanding of finances and a positive attitude toward money both lead to better financial practices like saving, investing, and budgeting. Specifically, the study showed that both financial knowledge and a positive financial attitude directly improve financial management behavior. They also found that these factors positively influence a person's income. Most importantly, the research concluded that income is a mediator in this relationship. This means that while knowing about finances and having a good attitude are important, a Gen Z entrepreneur's income level plays a significant role in determining how effectively they can apply that knowledge and those attitudes in real-world financial decisions. In essence, the ability to act on good financial habits is heavily influenced by how much money they earn.