Jennifer Audreylia Djiwono, Tiffany Evelyn Kondana, Reyna Reng Suy Laulyta, Olivia Yantho, Yuyun Karystin Meilisa Suade

Cashless Behavior And E-Wallets In Gen Z’s Financial Management

Introduction

Cashless behavior and e-wallets in gen z’s financial management. Study explores cashless payments and e-wallets' impact on Gen Z's financial management, addressing impulsive spending and literacy. Learn how digital tools foster healthy financial behavior.

Abstract

This study investigates the influence of cashless payments and digital wallets on the financial management of Generation Z in Makassar, focusing on key issues such as impulsive spending, low financial literacy, and data security. Although this generation is known to be technologically literate, many still lack the skills to manage their finances wisely. The study employed a quantitative approach with an explanatory design and involved 120 respondents aged 17 to 26 who actively use e-wallets in their daily financial activities. Data were analyzed using multiple linear regression with SPSS version 26. Statistical results showed that cashless payment behavior had a positive and significant effect on personal financial management (β = 0.421, p < 0.01), as did the use of digital wallets (β = 0.388, p < 0.01), contributing to greater efficiency and accuracy in financial management. The R² value of 0.56 indicates that both independent variables collectively explain 56% of the variance in personal financial management. Features such as automatic transaction recording, spending notifications, and payment reminders play a role in enhancing financial literacy and discipline. This study concludes that the careful adoption of digital financial technology can serve as a strategic tool for fostering healthy, structured, and sustainable financial behavior among Generation Z.

Review

This study timely investigates the crucial interaction between cashless payments, e-wallets, and the financial management behaviors of Generation Z in Makassar. The authors accurately identify a significant challenge: despite being digitally native, many young individuals struggle with wise financial management, often falling prey to impulsive spending and lacking financial literacy. Employing a quantitative, explanatory approach with a sample of 120 active e-wallet users, the research sets out to provide empirical evidence on how these digital tools influence financial practices, an increasingly relevant area given the rapid digital transformation of economies. The research presents compelling findings, indicating a positive and significant influence of both cashless payment behavior (β = 0.421, p < 0.01) and digital wallet usage (β = 0.388, p < 0.01) on personal financial management. The R² value of 0.56 underscores the substantial explanatory power of these independent variables, suggesting that digital financial tools are indeed playing a significant role. A particular strength of the study lies in identifying specific e-wallet features—such as automatic transaction recording, spending notifications, and payment reminders—as key mechanisms for enhancing financial literacy and discipline, thereby offering practical insights for platform developers and financial educators alike. The focus on Gen Z in Makassar provides valuable regional specificity to the understanding of digital financial adoption. While the study effectively demonstrates the positive impacts, the abstract touches upon "impulsive spending, low financial literacy, and data security" as "key issues" at the outset, yet the results primarily emphasize efficiency and accuracy in financial management. A more explicit discussion on how these particular digital tools *mitigate* impulsive spending or *directly improve* financial literacy (beyond fostering discipline) would have further enriched the findings. Future research could explore mediating factors, conduct comparative studies across different socioeconomic contexts, or delve into potential challenges, such as the risk of overspending facilitated by ease of payment, to offer a more holistic perspective. Nevertheless, this study makes a valuable contribution by highlighting the potential of digital financial technology as a strategic tool for fostering healthier financial behaviors among Generation Z.

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