Generation Z’s Financial Behaviour: The Role of Islamic Financial Literacy

Purpose — This research aims to examine the effect of family communication patterns on Islamic financial literacy (IFL) and risk tolerance Generation Z (Gen Z) in Indonesia. It also examines link between IFL, behaviour. Finally, it highlights moderating impact IFL Design/Methodology/Approach study used Muslim members Gen West Sumatra Indonesia who were born 1995 2001 as population. collected 668 responses two months. After some preliminary tests, such missing value normality test, employed 571 usable sample. Purposive sampling was conducted variance-based structural equation model-partial least square (SEM-PLS) method for data analysis. Findings The results show that patterns, both conformity conversation orientation, positively significantly influence tolerance. has a positive significant Surprisingly, moderates behaviour significantly. affects Originality/Value makes three theoretical contributions. First, provides better understanding more complex model relationship with its antecedents consequences, including Second, reveals Z’s significantly—an aspect which is neglected previous research. Third, expanded scope prior studies by addressing moderator Research Limitations/Implications Even though this carried out Harman’s single-factor analysis anticipate common bias, faces bias problem due cross-sectional nature study. Secondly, focuses Z, means most respondents are students their still affected decisions parents. Practical Implications contributions decision makers Otoritas Jasa Kewangan (Financial Services Authority) management banks institutions. increase have educate parents using two-way orientation method. influenced tolerance; hence, government society inform them about risks when conducting activities. Article Classification paper