The Relationship between Digital Lifestyle (Cashless Society) and Consumer Financial Behavior of Generation Z in Denpasar

Made Wianto Putra; Made Setini; I Ketut Selamet; Ida Ayu Putu Santi Purnamawati

doi:10.32535/ijafap.v9i1.4345

The Relationship between Digital Lifestyle (Cashless Society) and Consumer Financial Behavior of Generation Z in Denpasar

Made Wianto Putra, Made Setini, I Ketut Selamet, Ida Ayu Putu Santi Purnamawati

Abstract

The development of digital financial technology is driving significant changes in the consumption behavior of Generation Z, especially in the city of Denpasar, which is the center of digital-based economic activity in Bali. This study aims to analyze the influence of Financial Literacy and Digital Lifestyle (Cashless Society) on Consumptive Financial Behavior with Impulse Buying as a mediating variable. Using a quantitative approach and Partial Least Squares–Structural Equation Modeling (PLS-SEM) analysis, the study involved 250 Gen Z respondents who actively use digital services such as e-wallets, QRIS, and paylater. The results of the study show that financial literacy has a significant negative effect on consumptive behavior, which means that the higher the financial literacy, the lower the tendency to overconsumption. On the contrary, digital lifestyles have a significant positive effect on consumptive behavior, confirming that the ease of digital transactions increases the tendency to spontaneous consumption. The findings also reveal that impulse buying partially mediates the relationship between digital lifestyle and consumptive behavior, as well as mediates the full influence of financial literacy on consumptive behavior. Thus, impulsive impulses are an important psychological mechanism that explains how the digital environment shapes the financial behavior of Gen Z. This research makes a theoretical contribution to the literature on digital consumer behavior and offers practical implications for financial literacy education and digital transaction management policies for the younger generation

Keywords

financial literacy, digital lifestyle, impulse buying, consumptive behavior, Gen

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DOI: https://doi.org/10.32535/ijafap.v9i1.4345