Published in 2026 in the International Journal of Economic, Finance and Business Statistics (IJEFBS), the study examined how consumptive behavior, financial productivity, and financial stress interact to influence the financial performance of Generation Z in Indonesia. The findings highlight a growing challenge for young people living in the digital economy, where opportunities for wealth creation coexist with increasing pressure to spend.
The Digital Economy Has Created Two Financial Paths for Generation Z
Generation Z is the first generation to grow up with digital payments, online shopping platforms, social media marketing, and instant financial services. These technologies have transformed how young people earn, spend, save, and invest money.
Researchers observed two contrasting trends emerging from this environment.
The first is the rise of consumptive behavior, characterized by impulsive purchasing, lifestyle-driven spending, and the widespread use of Buy Now Pay Later (BNPL) services. Social media, influencer culture, and digital advertising have made spending easier and more attractive than ever before.
The second trend is financial productivity, where young adults use digital tools to generate side income, participate in online investments, build small businesses, and manage personal finances more effectively.
According to the researchers, these two forces are shaping the financial well-being of Generation Z in opposite directions.
Surveying Generation Z Across Indonesia
The study collected data from Indonesian Generation Z individuals aged 18 to 27 through structured questionnaires.
Participants answered questions related to:
- Consumptive behavior
- Financial productivity
- Financial stress
- Personal financial performance
The researchers then analyzed the relationships among these factors using statistical modeling techniques designed to identify patterns and causal connections.
Rather than focusing only on income or savings, the study evaluated financial performance more broadly, including spending habits, financial management, saving behavior, investment activities, and overall financial well-being.
Spending Habits Hurt Financial Performance
One of the clearest findings was the negative impact of consumptive behavior.
The study found that higher levels of impulsive purchasing and non-essential spending were associated with poorer financial performance among Generation Z.
Young adults who frequently spent money on lifestyle-oriented purchases or relied excessively on pay-later services were more likely to experience financial difficulties.
The statistical analysis showed a significant negative relationship between consumptive behavior and financial performance, indicating that excessive consumption can weaken long-term financial stability.
The findings support growing concerns among economists and financial educators that digital convenience may encourage spending habits that exceed an individual's financial capacity.
Financial Productivity Improves Financial Well-Being
In contrast, financial productivity demonstrated a strong positive effect on financial performance.
Generation Z respondents who actively sought additional income sources, maintained savings, invested regularly, or practiced financial planning reported better financial outcomes.
Key productive behaviors included:
- Earning side income
- Investing in financial instruments
- Maintaining savings habits
- Creating and following budgets
- Managing financial goals consistently
The study suggests that productive financial activities help young people accumulate assets, improve resilience against economic shocks, and build stronger long-term financial security.
For Generation Z, productivity appears to be one of the most effective tools for improving financial well-being.
Financial Stress Has a Powerful Influence
Perhaps the most significant finding involves the role of financial stress.
Financial stress refers to psychological pressure caused by financial uncertainty, debt obligations, insufficient income, or concerns about future financial security.
The research found that financial stress directly reduces financial performance. More importantly, it also changes how other financial behaviors affect outcomes.
When financial stress levels are high:
- The harmful effects of consumptive behavior become stronger.
- The positive effects of financial productivity become weaker.
In other words, even productive financial habits may not generate optimal results when individuals are overwhelmed by financial anxiety.
The researchers found that consumptive behavior, financial productivity, and financial stress together explained approximately 70.5 percent of the variation in Generation Z’s financial performance, demonstrating the substantial influence of behavioral and psychological factors on financial outcomes.
Why These Findings Matter
The findings have important implications for educators, policymakers, financial institutions, and families.
Many financial education programs focus primarily on improving financial literacy. However, the study suggests that knowledge alone may not be sufficient.
Financial stress management should become an essential component of financial education because emotional and psychological pressures significantly influence financial decision-making.
As the researchers from STIE Malangkuçeçwara explain, improving financial literacy must be accompanied by strategies that help young people manage financial stress if sustainable financial stability is to be achieved.
The study also highlights the need for responsible use of digital financial products, particularly Buy Now Pay Later services, which have become increasingly popular among younger consumers.
For businesses and financial technology providers, the research provides evidence that financial wellness programs may be just as important as offering access to financial products.
Expert Insight
According to Agussalim Andriansyah and colleagues from Malangkuçeçwara College of Economics, financial productivity can improve the financial performance of Generation Z, but its benefits may be diminished when financial stress becomes excessive. The researchers emphasize that managing financial stress is a critical element in maintaining long-term financial well-being.
Their findings suggest that successful personal finance management requires both productive financial behavior and emotional resilience.
Author Profiles
Agussalim Andriansyah is a researcher and academic at Malangkuçeçwara College of Economics (STIE Malangkuçeçwara), Indonesia. His work focuses on financial behavior, financial well-being, and personal finance management.
Rizky Nur Soewandi is an academic and researcher at STIE Malangkuçeçwara specializing in financial management, consumer behavior, and digital economy studies.
Lidia Andiani is a researcher at STIE Malangkuçeçwara whose expertise includes financial literacy, personal financial performance, and economic behavior among young adults.
Source
Article Title: Two Sides of Generation Z's Lifestyle: The Effect of Consumer Behavior and Financial Productivity in The Financial Performance of Generation with Financial Stress as A Moderating Variable
Authors: Agussalim Andriansyah, Rizky Nur Soewandi, Lidia Andiani
Affiliation: Malangkuçeçwara College of Economics (STIE Malangkuçeçwara), Indonesia
Journal: International Journal of Economic, Finance and Business Statistics (IJEFBS)
Year: 2026
Volume: 4(2), pp. 135–146
DOI: https://doi.org/10.59890/ijefbs.v4i2.424
Official Journal URL: https://dmimultitechpublisher.my.id/index.php/ijefbs
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