Financial Health in the Digital Era: Gen Z Financial Literacy to Combat a Consumptive Lifestyle

Abstract

The rapid development of digital technology makes life easier for Generation Z as digital natives but also poses challenges in managing personal finances. Easy access to social media, e-commerce, and digital transactions encourages a consumptive lifestyle, FOMO, impulsive shopping, and the use of pay-later services, which can threaten financial health. Financial literacy is essential for building healthy financial behavior, including budgeting, saving, investing, debt management, and the wise and secure use of fintech services. Formal education, family support, and educational digital platforms play a key role in enhancing financial literacy, enabling Gen Z to be more financially responsible and reduce consumptive behaviors.