The Influence of Nudging Strategies on Decision-Making: A Behavioural Study of Generation Z’s Public Finance and Budgetary Preferences

The study’s purpose is to analyse the influences of nudge strategies linked to public borrowing, tax responsibilities, social equity, economic welfare, and state budget engagement on the behavioural intentions of Generation Z undergraduates. The study employs two distinct face-to-face cluster interviews and nine experimental scenarios to examine how the framing effect, a nudging strategy, influences the public financial decisions of young adults from various universities. This experimental approach provides valuable insights into behavioural public finance by integrating psychological and economic principles. According to the findings, the framing effect significantly influences the behavioural intentions of Generation Z undergraduates. Furthermore, they reveal that effective nudges can enable these young adults to make more informed decisions about public finance and budgeting. This study is among the few that systematically performs an experimental design to examine the effects of various nudging approaches on Generation Z’s public finance and budgeting decisions. It also offers practical implications for policymakers, educators, and financial institutions, which aim to enhance budget awareness and literacy and encourage responsible financial behaviour of Generation Z.