THE EFFECT OF INCOME, FINANCIAL LITERACY, AND SOCIAL MEDIA ON THE INVESTMENT DECISIONS OF GENERATION Z WITH FINANCIAL PLANNING AS A MEDIATOR

Abstract

The development of digital technology and the flow of information through social media have changed the financial behavior of Generation Z, including in investment decision-making. Wide access to various platforms and investment instruments has increased the participation of this generation, but this is not always balanced with adequate financial management and planning skills. Investment decisions are influenced by income, financial literacy, and exposure to social media, with financial planning as a factor that strengthens these relationships. This study aims to analyze the influence of income, financial literacy, and social media on the investment decisions of Generation Z workers in Jakarta, with financial planning as a mediating variable. This study uses a quantitative approach with a descriptive and associative design. The research sample consisted of 384 respondents selected through purposive sampling. Data collection was conducted using an online questionnaire with a Likert scale. Data analysis used the PLS-SEM method with the help of SmartPLS 3.0, through outer model and inner model testing and hypothesis testing at a 5% significance level. The results showed that income, financial literacy, and social media had a positive and significant effect on investment decisions. Financial planning also had a positive and significant effect on investment decisions and was able to mediate the relationship between income, financial literacy, and social media on investment decisions. Based on these results, improving literacy, financial planning, and the educational use of social media can strengthen the quality of investment decision-making among Generation Z workers in Jakarta.