Factors Affecting the Financial Well-Being of Generation Y and Z in Batam: A Mixed Methods Study

Factors Affecting the Financial Well-Being of Generation Y and Z in Batam: This study analyzes the influence of religiosity, mental budgeting, financial behavior, risky indebtedness behavior, and financial preparation for retirement on financial well-being in Generation Y and Z in Batam. The approach used is mixed methods with quantitative as the main method, supported by qualitative data from interviews with seven respondents (five men and two women). A total of 305 respondents were selected through purposive sampling and analyzed using SEM-PLS. The results show that religiosity has a significant positive effect on financial behavior and indirectly improves financial well-being. Mental budgeting has a positive effect on financial behavior, but not on financial well-being directly. Financial behavior and financial preparation for retirement are important mediators, while risky indebtedness behavior hurts retirement preparation and financial well-being. These findings can be the basis for more targeted financial education and policies for the younger generation in Indonesia. Strong religious values encourage wiser financial behavior, such as saving, avoiding consumptive debt, and managing expenses more responsibly. For generations Y and Z, this has had a positive impact on their financial well-being, as seen in stable financial conditions, achievement of financial goals, and reduced money-related stress.