The Effect of Financial Literacy and Financial Inclusion on Personal Financial Management Among Generation Z in West Karawang District

Generation Z now has broader access to various financial services and products due to the rapid growth of digital financial services. However, this increased accessibility is often not accompanied by adequate financial management skills. This study aims to examine the influence of financial inclusion and financial literacy on personal financial management among Generation Z in West Karawang Regency. This research employs a quantitative verification approach using primary data collected from 100 Generation Z respondents through questionnaires. The Partial Least Squares (PLS) method is applied as the data analysis technique, along with validity and reliability testing, as well as hypothesis testing through bootstrapping. The findings indicate that financial literacy has a positive and significant effect on personal financial management, with a coefficient value of 0,463 and a t-statistic of 2,276. Additionally, financial inclusion also has a positive and significant impact, with a coefficient value of 0,391 and a t-statistic of 2,417. This study concludes that improving financial literacy and financial inclusion plays a crucial role in encouraging Generation Z to manage their finances in a more organized, prudent, and responsible manner. It is recommended that local governments, financial institutions, and educational institutions consider these findings when developing effective financial education programs for Generation Z.

Keywords: financial literacy, financial inclusion, personal financial management, Generation Z