Email this article YOUTH CHALLENGES IN ACHIEVING FINANCIAL WELL-BEING: THE ROLE OF FINANCIAL SECURITY
Abstract
Young people face rising living costs, income uncertainty, and financial stress, which make financial well-being increasingly difficult to achieve. This study examines the effects of financial behavior and expected future financial security on financial security and financial well-being, as well as the mediating role of financial security in these relationships. This quantitative study collected data through an online questionnaire from 100 Generation Z and Millennial respondents aged 20 to 35 years in Surabaya, Indonesia, who invest in banking or capital market financial products and were selected using purposive sampling. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results show that financial behavior has a positive and significant effect on financial security and financial well-being, while expected future financial security has a positive and significant effect on financial security but no significant direct effect on financial well-being. Financial security has a positive and significant effect on financial well-being and is its strongest predictor. Financial security partially mediates the effect of financial behavior on financial well-being and fully mediates the effect of expected future financial security on financial well-being. These findings indicate that expectations of future financial security improve financial well-being only when they are translated into a present sense of financial security, so efforts to improve the financial well-being of young people should strengthen current financial security alongside healthy financial behavior.
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DOI: https://doi.org/10.20961/jaedc.v10i2.108373
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