The Influence of Financial Literacy, Overconfidence, and Digital Literacy on Investment Decisions of Generation Z in East Jakarta

Abstract

This study aims to examine the influence of financial literacy, overconfidence, and digital literacy on investment decisions among Generation Z in East Jakarta. Financial literacy plays a crucial role in helping individuals make informed investment decisions. Overconfidence, as a psychological factor, may lead to excessive self-assurance, which increases the risk of suboptimal investment decisions. Additionally, digital literacy enables individuals to effectively utilize online resources for investment purposes. This research employs a quantitative approach, with data collected through a questionnaire and analyzed using SmartPLS 4 software. The findings indicate that financial literacy, overconfidence, and digital literacy significantly impact the investment decisions of Generation Z. This study contributes to understanding the factors that influence investment decisions within this demographic and highlights the importance of improving financial education, managing overconfidence, and leveraging the internet as a reliable source of investment information.