A new study by Karimatun Nisa, Umi
Widyastuti, and I Gusti Ketut Agung Ulupui from Universitas
Negeri Jakarta reveals that a hedonistic lifestyle is the most influential
factor shaping investment intentions among Indonesia’s millennial generation.
Published in 2026 in the International Journal of Finance and
Business Management, the research shows that the pursuit of enjoyment and
lifestyle fulfillment does not weaken financial planning, but instead actively
encourages young adults to invest. The findings matter as Indonesia seeks to
broaden capital market participation and strengthen financial resilience among
its largest productive generation.
The study examines why many millennials, despite having easy access to digital investment platforms and financial information, remain hesitant or inconsistent investors. By expanding the widely used Theory of Planned Behavior, the authors provide fresh evidence that social influence, self-confidence, and lifestyle motivations play a greater role than personal attitudes alone in shaping investment intentions.
Why Millennial Investment Behavior Matters
Indonesia’s
millennials, born between 1981 and 1996, represent a major share of the
workforce and consumer market. Their financial decisions have long-term
implications for household welfare, national savings, and capital market
growth. In recent years, regulators and financial institutions have invested
heavily in digital platforms and literacy campaigns to attract young investors.
However, participation rates still lag behind expectations.
Traditional financial education often assumes that
a positive attitude toward investment will naturally lead to action. The
research from Universitas Negeri Jakarta challenges this assumption. It
suggests that modern financial behavior cannot be separated from lifestyle
choices, social environments, and perceived control over financial decisions.
In a digital economy shaped by social media, peer
influence, and lifestyle branding, investment decisions increasingly reflect
identity and aspirations, not just rational calculations.
How the Research Was Conducted
The
researchers used a quantitative survey approach targeting Indonesian
millennials. Respondents were selected using purposive sampling to ensure they
matched the millennial age profile and had exposure to financial
decision-making.
Data were analyzed using a statistical modeling
approach designed to examine relationships between multiple behavioral factors
at once. In simple terms, the analysis measured how strongly different factors
influenced the intention to invest, rather than actual investment behavior.
The model included five main variables:
- Attitude toward investment
- Subjective norms, or social pressure from family, friends, and peers
- Perceived behavioral control, reflecting confidence and self-efficacy in managing investments
- Hedonism lifestyle, defined as prioritizing pleasure, comfort, and lifestyle enjoyment
- Financial literacy, measuring understanding of basic financial concepts
This approach allowed the authors to compare which
factors mattered most and how they interacted.
Key Findings Explained Clearly
The
results reveal a clear hierarchy of influence on millennial investment
intentions.
The main findings include:
- Hedonism lifestyle is the strongest positive predictor of investment intention. Millennials who prioritize enjoyment and lifestyle quality are more likely to plan to invest.
- Subjective norms significantly increase investment intention. Social encouragement and peer behavior strongly shape financial decisions.
- Perceived behavioral control also has a positive effect. Millennials who feel confident in their ability to manage investments show stronger intention to invest.
- Attitude toward investment is not a significant predictor. Simply believing that investment is good does not translate into intention.
- Financial literacy has a direct positive effect, but it does not strengthen or weaken the influence of other factors.
In numerical terms, the lifestyle factor shows the
largest effect size in the model, outperforming psychological attitude and even
financial knowledge.
Rethinking Hedonism and Financial
Planning
One of the most important insights from the
Universitas Negeri Jakarta study is the reframing of hedonism. Traditionally, a
hedonistic lifestyle is associated with excessive consumption, low savings, and
poor long-term planning. The findings tell a different story for millennials.
For many young adults, investment is viewed as a
tool to sustain and enhance a desired lifestyle, not as a sacrifice of
present enjoyment for future security. Investment becomes a means to generate
resources that support travel, leisure, comfort, and social status over time.
As ethically paraphrased from the authors, the
desire to maintain pleasure and material enjoyment encourages millennials to
seek financial instruments that can expand their future consumption capacity,
making investment an attractive strategy rather than a burden. This
perspective helps explain why lifestyle-oriented marketing often resonates more
strongly than traditional retirement-focused messaging.
Implications for Industry,
Education, and Policy
The
findings carry practical implications across multiple sectors.
For
financial institutions, marketing strategies should move beyond technical explanations and
risk warnings. Campaigns that connect investment with lifestyle goals,
flexibility, and social relevance are likely to resonate more with millennials.
For educators and financial literacy programs, the study highlights the limits
of knowledge-based approaches. While financial literacy remains important,
building confidence, usability, and a sense of control may be more effective in
motivating action.
For policymakers, the research suggests that inclusive finance
initiatives should acknowledge social and cultural motivations. Encouraging
peer-based investment communities and socially visible participation could help
expand market engagement.
Overall, the study supports a shift from purely rational models of financial behavior toward approaches that integrate lifestyle, identity, and social influence.
Author Profiles
Karimatun
Nisa,
researcher in finance and behavioral finance
Universitas Negeri Jakarta
Expertise: investment behavior, financial decision-making, consumer finance
Umi
Widyastuti,
Senior lecturer and researcher in financial literacy and economic education
Universitas Negeri Jakarta
Expertise: financial education, household finance, economic behavior
I Gusti
Ketut Agung Ulupui,
Lecturer and researcher in accounting and finance
Universitas Negeri Jakarta
Expertise: accounting, capital markets, financial analysis
Source
Journal
Article Title: The
Millennial Generation’s Intention to Invest: A Modified Model of the Theory of
Planned Behavior
Journal: International Journal of Finance and Business Management
Publication Year: 2026
DOI: https://doi.org/10.59890/ijfbm.v4i1.172
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