The Influence of Financial Literacy and Cashless Behavior on the Financial Management Behavior of Generation Z in Cirebon City

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FORMOSA NEWS - Cirebon - Financial Literacy and Cashless Habits Shape Gen Z Money Management in Cirebon. A 2026 study by Selma Khansa, Nurhana Dhea Parlina, and Agustina from Swadaya Gunung Jati University reveals that financial literacy and cashless payment habits significantly influence how Generation Z manages money in Cirebon City, Indonesia. Published in the Asian Journal of Management Analytics, the research highlights a critical issue in the digital era: young people are increasingly surrounded by financial technology, but their ability to manage money effectively depends on both knowledge and behavior. The findings matter as Indonesia accelerates toward a digital economy, where mobile payments, e-wallets, and QR-based transactions are becoming the norm. Generation Z those born into the digital age are at the forefront of this transition, making their financial behavior a key indicator of future economic stability.

Digital Finance Boom Raises New Challenges
Indonesia’s rapid adoption of digital financial services has transformed everyday transactions. Cashless payments are now widely used for shopping, transportation, and even small daily expenses. While this shift improves efficiency and convenience, it also introduces new risks. Young users can spend money more easily and frequently, often without fully realizing the cumulative impact. This makes financial literacy understanding budgeting, saving, and responsible spending more important than ever. Previous studies have already shown that financial knowledge influences how individuals make economic decisions. This new research reinforces that connection while adding another layer: the role of habitual digital payment use.

How the Study Was Conducted
The research team from Swadaya Gunung Jati University collected data from 100 Generation Z respondents in Cirebon City. All participants were between 17 and 28 years old, owned smartphones, and actively used cashless payment systems. The study used a survey-based approach, asking participants to rate their financial knowledge, spending habits, and money management behavior. The data was then analyzed using a statistical modeling method designed to identify relationships between variables.
The researchers focused on three main factors:

• Financial literacy.
• Cashless payment behavior.
• Financial management behavior.

This approach allowed them to measure both individual and combined effects on how young people handle their finances.

Key Findings: Knowledge and Technology Both Matter
The study delivers clear and measurable results:

• Financial literacy has the strongest influence. Respondents with higher financial knowledge showed significantly better money management, including budgeting, saving, and controlling expenses.
• Cashless behavior also has a positive impact. Frequent use of digital payments helps users track spending through transaction records and notifications.
• Combined effect is substantial. Together, financial literacy and cashless habits explain more than half (50.7%) of the variation in financial management behavior among respondents.
• Behavior not yet optimal. Despite relatively high literacy and digital usage, many respondents still struggle to fully manage their finances effectively.

These findings confirm that technology alone is not enough. Financial skills remain essential for making sound decisions.

Real-World Implications
The study offers practical insights for multiple sectors:
For education: Schools and universities can integrate applied financial literacy into curricula, focusing on real-life skills such as budgeting, saving, and digital finance management.

For policymakers: Government agencies, including financial regulators, can expand financial education programs targeting young people. Increasing awareness is key to preventing long-term financial vulnerability.

For fintech companies: Digital payment providers can design features that promote responsible spending, such as:

• Spending limits.
• Budget tracking tools.
• Financial health dashboards.
• Alerts for unusual or excessive transactions.

Author Profiles

Selma Khansa, S.E. – Researcher in financial management and consumer behavior, Universitas Swadaya Gunung Jati

Nurhana Dhea Parlina, S.E., M.M. – Lecturer and researcher specializing in financial literacy and youth finance, Universitas Swadaya Gunung Jati

Agustina, S.E., M.M. – Academic in management and finance, Universitas Swadaya Gunung Jati

Sumber Penelitian

b; Agustina. The Influence of Financial Literacy and Cashless Behavior on the Financial Management Behavior of Generation Z in Cirebon City. Asian Journal of Management Analytics (AJMA), Vol. 5 No. 2, 2026.

DOI: https://doi.org/10.55927/ajma.v5i2.16453

URL: https://journal.formosapublisher.org/index.php/ajma