Empirical Analysis of the Link Between Financial Literacy and Personal Financial Decision of Gen Z

Abstract

The main objective of this research is to analyze the relations among the Jordan Gen Z individuals Personal Financial (PF) Decisions and the Financial Literacy (FL). It mainly emphasis in determining the way that the Personal (DM) Decision Making gets impacted by the Financial Literacy (FL) level. As it gets impacted in DM expenditure, investments and savings. Then, 487 Gen Z individuals with age varied form 18 to 24 were enrolled in the Jordanian institutions according to the survey outcomes. For the purpose of gathering information about their FL status, Financial Attitudes (FA), Finanial Behavior (FB), skills and knowledges. For obtaining the relations among FL and PF decisions, the SEM was applied for this anal ysis. Then the outcomes of this study shows that there is a positive correlation among Jordan GenZ individuals PF decisions and FL. Improved financial outcomes, FA and FB due to the FL’s greater level. Various suggestions arrives due to the outcomes of the analysis, schools and universities inclusive financial education programs were implemented. Digital platforms and social media are improved by FL, provision of easily accessible and cost- effective financial services provided to the young clients demands. Thus, the study utilizes SEM for analyzing such complex relations among PF decisions and FL. This research focuses on developing FL over the Jordan’s young individuals through the practical knowledge and Empirical Analaysis (EA) as it helps to fodter the individuals in making financial decisions and it is considered to be its main goal.