The Influence of Financial Self-Efficacy and Financial Well-Being on Financial Planning among Millennials and Generation Z: A Systematic Literature Review

Abstract

Financial planning is essential for maintaining the financial stability and well-being of Millennials and Generation Z amid the development of digital financial services, changing consumption patterns, and the increasing complexity of economic needs. However, access to financial products and financial knowledge does not necessarily translate into the ability to develop and consistently implement financial plans. This study aims to synthesize the literature on the relationship between financial self-efficacy, financial well-being, and financial planning among Millennials and Generation Z. The study is designed using a Systematic Literature Review (SLR) approach guided by the PRISMA 2020 guidelines. Relevant literature includes empirical studies, review articles, and conceptual publications addressing individuals’ confidence in managing their finances, financial well-being, financial behavior, and financial planning among younger populations. The literature synthesis indicates that financial self-efficacy may support financial planning by strengthening individuals’ confidence in setting financial goals, controlling expenditures, saving, and managing financial difficulties. Meanwhile, financial well-being reflects a state of financial security and freedom that may be associated with individuals’ ability to maintain financial plans and cope with uncertainty. Nevertheless, the relationship between these two variables and financial planning should be interpreted cautiously because the direction of the relationships, construct measurements, and socioeconomic conditions may vary across studies.

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