THE IMPACT OF FEAR OF MISSING OUT (FOMO) ON THE FINANCIAL BEHAVIOR OF GENERATION Z: THE DEVELOPMENT OF A SUSTAINABLE DIGITAL FINANCIAL LITERACY LEARNING MODEL IN BANGKA BELITUNG ISLANDS PROVINCE
DOI:
https://doi.org/10.33019/er7jf428Keywords:
Fear of Missing Out, Generation Z, Financial Literacy, Digital Learning, Behavioral FinanceAbstract
The phenomenon of Fear of Missing Out (FOMO) has become a critical issue that affects the financial behavior of Indonesia's Generation Z, especially in the era of financial digitalization. This study aims to analyze the impact of FOMO on the financial literacy of Generation Z and develop a sustainable digital learning model to improve their financial well-being. The research method used a mixed-method with a sequential explanatory design, involving 2,150 Generation Z respondents (aged 18-27 years) in four districts/cities in the Bangka Belitung Islands Province. The research instruments consisted of structured questionnaires, Focus Group Discussions (FGDs), and in-depth interviews. Data were analyzed using Structural Equation Modeling (SEM) and thematic analysis. The results showed that 73% of respondents experienced financial anxiety due to FOMO with an average debt-to income ratio of 42%, far exceeding the healthy standard of 30%. The developed FINLIT-SUSTAIN learning model was proven to increase financial literacy scores by 64% and reduce financial FOMO rates by 40% after four weeks of implementation. These findings make a theoretical contribution to the development of behavioral finance theory and practical contribution in the form of a digital financial learning framework that can be implemented nationally.
Downloads
References
Abel, J. P., Buff, C. L., & Burr, S. A. (2016). Social media and the fear of missing out: Scale development and assessment. Journal of Business & Economics Research, 14(1), 33-44.
Agarwal, S., Driscoll, J. C., Gabaix, X., & Laibson, D. (2024). The age of reason: Financial decisions over the life cycle and implications for regulation. Brookings Papers on Economic Activity, 2024(1), 51-117.
Ajzen, I. (2011). The theory of planned behaviour: Reactions and reflections. Psychology & Health, 26(9), 1113-1127.
Atkinson, A., & Messy, F. A. (2012). Measuring financial literacy: Results of the OECD / International Network on Financial Education (INFE) pilot study. OECD Working Papers on Finance, Insurance and Private Pensions, No. 15.
Bank Indonesia. (2024). Indonesian digital consumer behavior survey 2024. Jakarta: BI Communication Department.
Bank Indonesia. (2024). Statistics of the Indonesian payment system 2024. Jakarta: Bank Indonesia.
Barber, B. M., & Odean, T. (2013). The behavior of individual investors. In G. M. Constantinides, M. Harris, & R. M. Stulz (Eds.), Handbook of the economics of finance (Vol. 2, pp. 1533-1570). Elsevier.
Badan Pusat Statistik. (2024). Indonesian population projection 2020-2050: Results of the 2020 population census. Jakarta: BPS.
Badan Pusat Statistik. (2024). Statistics of Indonesia's millennial and Z generation 2024. Jakarta: BPS-Statistics Indonesia.
Chen, H., & Volpe, R. P. (2023). Financial literacy and digital payment adoption among Generation Z: A cross-cultural analysis. Journal of Financial Education, 49(2), 78-95.
Collins, J. M., & O'Rourke, C. M. (2010). Financial education and counseling—Still holding promise. Journal of Consumer Affairs, 44(3), 483-498.
Creswell, J. W., & Plano Clark, V. L. (2017). Designing and conducting mixed methods research (3rd ed.). Thousand Oaks, CA: SAGE Publications.
Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Quarterly, 13(3), 319-340.
Deci, E. L., & Ryan, R. M. (2000). The "what" and "why" of goal pursuits: Human needs and the self-determination of behavior. Psychological Inquiry, 11(4), 227-268.
Deloitte. (2024). The Deloitte Global 2024 Gen Z and Millennial Survey. London: Deloitte Insights.
Deterding, S., Dixon, D., Khaled, R., & Nacke, L. (2011). From game design elements to gamefulness: Defining gamification. In Proceedings of the 15th International Academic MindTrek Conference (pp. 9-15).
Dhir, A., Yossatorn, Y., Kaur, P., & Chen, S. (2018). Online social media fatigue and psychological wellbeing—A study of compulsive use, fear of missing out, fatigue, anxiety and depression. International Journal of Information Management, 40, 141-152.
Dolot, A. (2018). The characteristics of Generation Z. E-mentor, 2(74), 44-50.
Educational Technology Research Institute. (2024). Gamification and financial learning: Effectiveness study across age groups. Boston: ETR Publications.
Educational Technology Research Institute. (2024). Digital learning effectiveness among Generation Z: A comparative study. Educational Technology Research Journal, 15(2), 45-62.
Francis, T., & Hoefel, F. (2018). True Gen: Generation Z and its implications for companies. McKinsey & Company.
Francis, T., & Hoefel, F. (2024). The influence of Gen Z: How digital natives are reshaping financial services. McKinsey Quarterly, 3, 112-128.
Freeman, R. E. (1984). Strategic management: A stakeholder approach. Boston: Pitman.
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2019). Multivariate data analysis (8th ed.). Boston: Cengage Learning.
Hastings, J. S., Madrian, B. C., & Skimmyhorn, W. L. (2023). Financial literacy, financial education, and economic outcomes. Annual Review of Economics, 15, 191-220.
Herman, D. (2020). The psychology of FOMO: Fear of missing out in the digital age. Academic Press.
Herman, S. (2020). FOMO (fear of missing out): The effects of the need to belong, social media use and personality on impulse buying. Economics and Business, 34(1), 77-90.
Johnson, M. K., & Thompson, L. R. (2024). FOMO and financial decision-making: Evidence from social media influence on investment behavior. Behavioral Finance Quarterly, 28(4), 445-467.
Kahneman, D., & Tversky, A. (1979). Prospect theory: An analysis of decision under risk. Econometrica, 47(2), 263-291.
Kiili, K. (2005). Digital game-based learning: Towards an experiential gaming model. The Internet and Higher Education, 8(1), 13-24.
Kolb, D. A. (1984). Experiential learning: Experience as the source of learning and development. Englewood Cliffs, NJ: Prentice Hall.
Kredivo. (2024). Gen-Z financial behavior report: Indonesia digital consumer insights. Jakarta: Kredivo Research Center.
Kredivo. (2024). Indonesia Gen-Z financial behavior report 2024. Jakarta: Kredivo Research Institute.
Lusardi, A., & Mitchell, O. S. (2011). Financial literacy around the world: An overview. Journal of Pension Economics & Finance, 10(4), 497-508.
Lusardi, A., & Mitchell, O. S. (2023). The economic importance of financial literacy: Theory and evidence. Journal of Economic Literature, 52(1), 5-44.
McKinsey Global Institute. (2024). Generation Z: Understanding the next generation of consumers. New York: McKinsey & Company.
McKinsey Global Institute. (2024). The age of AI: Artificial intelligence and the future of work. New York: McKinsey & Company.
OECD. (2020). OECD/INFE 2020 International Survey of Adult Financial Literacy. Paris: OECD Publishing.
Otoritas Jasa Keuangan. (2024). National survey on financial literacy and inclusion 2024. Jakarta: Department of Financial Literacy and Inclusion of OJK.
Pallant, J. (2020). SPSS survival manual: A step by step guide to data analysis using IBM SPSS (7th ed.). London: McGraw-Hill Education.
Pew Research Center. (2024). Gen Z's financial challenges: A global perspective. Washington, DC: Pew Research Center.
Powell, W. W. (1990). Neither market nor hierarchy: Network forms of organization. Research in Organizational Behavior, 12, 295-336.
Przybylski, A. K., Murayama, K., DeHaan, C. R., & Gladwell, V. (2013). Motivational, emotional, and behavioral correlates of fear of missing out. Computers in Human Behavior, 29(4), 1841-1848.
Rahman, A., & Sari, D. P. (2024). Digital financial inclusion in Indonesia: Challenges and opportunities for Generation Z. Asian Economic Journal, 38(2), 156-178.
Ryan, R. M., & Deci, E. L. (2017). Self-determination theory: Basic psychological needs in motivation, development, and wellness. New York: Guilford Publications.
Sandberg, J., Juravle, C., Hedesström, T. M., & Hamilton, I. (2009). The heterogeneity of socially responsible investment. Journal of Business Ethics, 87(4), 519-533.
Shefrin, H., & Statman, M. (1985). The disposition to sell winners too early and ride losers too long: Theory and evidence. Journal of Finance, 40(3), 777-790.
Shim, S., Xiao, J. J., Barber, B. L., & Lyons, A. C. (2023). Pathways to life success: A conceptual model of financial well-being for young adults. Journal of Applied Developmental Psychology, 89, 101-115.
Siemens, G. (2005). Connectivism: A learning theory for the digital age. International Journal of Instructional Technology and Distance Learning, 2(1), 3-10.
Snap Inc. (2024). Generation Z financial app usage: Southeast Asia study. Los Angeles: Snap Research.
Snap Inc. (2024). Indonesia digital financial services adoption study. Los Angeles: Snap Research Division.
Sterling, S. (2001). Sustainable education: Re-visioning learning and change. Schumacher Briefings No. 6. Bristol: Schumacher Society.
Tabachnick, B. G., & Fidell, L. S. (2019). Using multivariate statistics (7th ed.). Boston: Pearson.
Teddlie, C., & Tashakkori, A. (2021). Foundations of mixed methods research: Integrating quantitative and qualitative approaches in the social and behavioral sciences (2nd ed.). Thousand Oaks, CA: SAGE Publications.
Thaler, R. H., & Sunstein, C. R. (2021). Nudge: Improving decisions about health, wealth, and happiness (Revised ed.). New York: Penguin Books.
Thaler, R. H., & Sunstein, C. R. (2023). Nudge: The final edition. New Haven: Yale University Press.
Twenge, J. M. (2017). iGen: Why today's super-connected kids are growing up less rebellious, more tolerant, less happy—and completely unprepared for adulthood. Atria Books.
Vygotsky, L. S. (1978). Mind in society: The development of higher psychological processes. Cambridge, MA: Harvard University Press.
White, K., Habib, R., & Hardisty, D. J. (2019). How to SHIFT consumer behaviors to be more sustainable: A literature review and guiding framework. Journal of Marketing, 83(3), 22-49.
World Bank. (2024). Global financial inclusion database 2024: Digital payments and financial behavior. Washington, DC: World Bank Group.
Zhang, L., & Wang, S. (2024). Social media influence on financial behavior: A systematic review and meta-analysis. Cyberpsychology, Behavior, and Social Networking, 27(3), 198-214.
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Amos Sihombing, Michael Stevanus, Nur Aliyah
This work is licensed under a Creative Commons Attribution 4.0 International License.
This work is licensed under a Creative Commons Attribution 4.0 International License.
