Financial Literacy and Its Impact on Investment Decisions Among Generation Z Students in East Java

Abstract

This study investigates the influence of minimum capital, investment knowledge, age, lifestyle, and return on the investment decisions of university students in East Java. Employing a quantitative approach, data were collected from 60 student investors across 16 universities using validated questionnaires and analyzed through multiple linear regression. The findings reveal that only investment knowledge has a significant and positive effect on students’ investment decisions, while minimum capital, age, lifestyle, and return do not show significant individual impacts. The model accounts for 58.4% of the variance in investment decisions, underscoring the central role of financial literacy in shaping investment behavior among Generation Z students. These results imply that educational institutions and capital market facilitators should focus on enhancing investment literacy and practical training, rather than lowering capital requirements or promoting investment as a lifestyle trend. Integrating financial education into university curricula and providing engaging, hands-on experiences are recommended to foster more informed and confident student investors, while future research should consider broader samples and additional variables to further clarify the determinants of student investment behavior.

Keywords: Financial Literacy; Investment Decision; Generation Z