Generation Z and Financial Behavior: The Role of Financial Literacy

In today’s digitally-driven economy, young individuals are increasingly engaging in financial activities at an early age; however, many lack the essential financial literacy needed to navigate these activities effectively. Financial literacy encompasses both the knowledge and skills required for proficient financial management, which are crucial for making informed decisions and avoiding common financial pitfalls. This study explores the factors influencing the relationship between financial literacy, financial behavior, f inancial well-being, financial fragility, and future concerns, based on a survey conducted among a random sample of students in Türkiye. The findings reveal that young adult males demonstrate higher levels of f inancial literacy than their female counterparts, highlighting the need for targeted educational programs to address this gender disparity. Furthermore, this study underscores the prevalence of financial stress among young adults, emphasizing the importance of incorporating financial education into everyday practices. The analysis also indicates that dimensions of financial vulnerability are predictive of financial outcomes, with financially literate students better equipped to handle unexpected financial shocks. Consequently, financial literacy emerges as a crucial determinant of students’ financial well-being.