The Role of Investment Interest in Mediating the Influence of Financial Literacy and Financial Technology on Investment Decisions of Generation Z and Millennials
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Abstract
This study examines the mediating role of investment interest in the relationship between financial literacy, financial technology, and investment decisions among Generation Z and millennials in Jakarta, Indonesia. A quantitative approach with an explanatory research design was employed. Data were collected from employed individuals aged 22–39 years using a five-point Likert-scale questionnaire. Respondents were selected through purposive sampling, and the data were analyzed using partial least squares structural equation modeling (PLS-SEM) with SmartPLS. The results indicate that financial literacy has a positive and significant effect on investment interest (β = 0.315, p = 0.005) and investment decisions (β = 0.254, p = 0.016). Financial technology also has a positive and significant effect on investment interest (β = 0.321, p = 0.002) and investment decisions (β = 0.228, p = 0.028). Furthermore, investment interest has a positive and significant effect on investment decisions (β = 0.306, p = 0.001). The model explains 20.9% of the variance in investment interest and 21.0% of the variance in investment decisions. These findings highlight the importance of financial literacy and financial technology in shaping investment interest and investment decisions among younger generations. The study emphasizes the need to strengthen financial education and digital literacy to encourage informed and responsible investment decisions. However, further analysis of indirect effects is needed to establish the mediating role of investment interest.
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