Predicting Financial Attitude among Generation Z: The Role of Financial Awareness, Financial Literacy, and Investment Awareness
Abstract
This study investigates the impact of financial awareness, financial literacy, and investment awareness on the financial attitude of Generation Z in the Indian higher education context. As digital financial services and FinTech adoption continue to expand, understanding the factors that shape the financial attitudes of young adults has become increasingly important. A quantitative research design was adopted by employing a structured questionnaire administered to undergraduate finance students belonging to Generation Z. Data were collected from 413 respondents across arts colleges in Chennai, of which 390 valid responses were analysed using IBM SPSS Statistics. Descriptive statistics, reliability analysis, and multiple regression analysis were conducted to assess the proposed relationships among the study variables. The regression model was found to be statistically significant (F = 41.628, p < 0.001). The findings reveal that financial literacy is the strongest explanatory variable of financial attitude (β = 0.374, p < 0.001), followed by financial awareness (β = 0.175, p = 0.027), both of which exert a significant positive influence on financial attitude. However, investment awareness exhibited a positive but statistically insignificant association with financial attitude (β = 0.110, p = 0.113). This study provides an integrated perspective on the financial orientation of digitally connected young adults. From a social perspective, the findings highlight the need for higher education institutions, policymakers, and financial educators to strengthen financial literacy and financial awareness initiatives among Generation Z to promote responsible financial attitudes, informed financial decision-making, and sustainable financial practices. The study also provides useful implications for designing targeted financial education programmes that can enhance the financial preparedness and long-term financial well-being of young adults.