The Influence of Financial Literacy and Heuristic Behavior on Generation Z’s Investing Decisions During a Global Pandemic

Abstract

This study seeks to determine how Financial Literacy and Heuristic Behaviour influence Generation Z’s Investing Choices during the pandemic. The research sample consisted of 330 Generation Z respondents in the JABODETABEK region between the ages of 18 and 24. This study employs survey methodology and data collection in the form of a Google form questionnaire. Using WarpPLS version 7.0 software, the data were manipulated. The findings of this study indicate that Financial Literacy has a significant positive effect on investment decisions. Financial Literacy has a significant positive influence on investment decisions through perception risk. Heuristic Behaviour has a significant positive effect on investment decisions. Heuristic Behaviour has the greatest influence on investment decision through perception risk compared to other variables. Generation Z is projected to be courageous and willing to make financial decisions, despite being cautious about avoiding risks. It is hoped that future studies will evaluate what investments will be based on generational, technological, and product disparities.