UNDERSTANDING FINANCIAL WELL-BEING AMONG GEN Z: THE ROLE OF BEHAVIOR, LITERACY, AND STRESS IN SURABAYA

This study examines the influence of financial behavior, financial literacy, and financial stress on the financial well-being of Generation Z (Gen Z) in Surabaya, Indonesia. As digitally adept individuals navigating intricate financial landscapes, Gen Z encounters distinct challenges, including increasing economic pressures, impulsive spending habits, and insufficient financial preparedness. Utilizing the Theory of Planned Behavior and the Capability Approach as its theoretical foundation, this research employs a quantitative method with a purposive sample of 384 respondents aged 18–24. The findings indicate that financial behavior and financial literacy positively and significantly affect financial well-being, whereas financial stress has a negative and significant impact. Financial behavior emerged as the most robust predictor, underscoring the importance of converting financial knowledge into consistent, positive habits. The results highlight the necessity for integrated financial education that fosters not only literacy but also practical behavior and emotional regulation. This study adds to the expanding literature on youth financial resilience in emerging economies and offers valuable insights for policymakers, educators, and financial institutions aiming to improve the financial well-being of Indonesian youth. It emphasizes the urgency of addressing the cognitive, behavioral, and emotional aspects of financial decisionmaking in the digital age.