Generation Z Financial Literacy and Behaviour

Abstract

The financial landscape has been transformed by rapid advances in digital technologies and financial products, creating both opportunities and challenges for Generation Z (Gen Z), the first true digital natives. Despite their extensive exposure to financial platforms, research shows that many in this cohort possess only moderate financial literacy and often struggle with long-term financial planning. This conceptual paper reviews existing literature on Gen Z's financial literacy and behavioural finance to address three objectives: (1) assess the levels of financial literacy among Gen Z, (2) examine behavioural and psychological factors influencing their financial decision-making, and (3) identify gaps in current research to propose a conceptual framework. The findings underscore that knowledge alone is insufficient without considering behavioural drivers and digital influences that shape financial outcomes. By integrating financial literacy, behavioural finance, and digital contextual factors, this study contributes to a more holistic understanding of Gen Z's financial behaviour. It offers practical insights for designing education initiatives and policy interventions to strengthen youth financial well-being in the digital era.