Analyzing the Link Between FOMO,Financial Literacy, and Financial Behavior in Shaping Entrepreneurial Intention Among Generation Z

Angelina Medina Najmani, I Gusti Bagus Yosia Wiryakusuma, Johan Pratama Siahainenia

Abstract


This study explores how FOMO, financial knowledge, and personal financial management habits shape entrepreneurial intention among Generation Z. Using a quantitative approach with SEM-PLS, the research examines the relationships among the key variables. The findings indicate that fear of missing out, financial literacy, and financial behavior each contribute to increasing young individuals’ inclination to engage in entrepreneurial activities. Financial literacy is shown to promote healthier financial behavior, which subsequently serves as an indirect pathway that enhances entrepreneurial intention. The study also reveals that financial literacy strengthens individuals’ responses to the influence of FOMO within the entrepreneurial context. Overall, the results illustrate that psychological factors and financial capabilities complement each other in fostering entrepreneurial interest. However, the study is limited by the dominance of student respondents, suggesting that future research should involve more diverse participant groups.

Keywords


FOMO, Financial Literacy, Financial Behavior, Entrepreneurial Intention, Generation Z

Full Text:

PDF

References


Alshakhsi, S. et al. (2023) “Acta Psychologica On the association between personality, fear of missing out (FoMO) and problematic social media use tendencies in European and Arabian samples,” Acta Psychologica, 240, p. 104026. Available at: https://doi.org/10.1016/j.actpsy.2023.104026.

Alshebami, A.S. and Marri, S.H. Al (2022) “The Impact of Financial Literacy on Entrepreneurial Intention: The Mediating Role of Saving Behavior,” Frontiers in Psychology, 13, pp. 1–10. Available at: https://doi.org/10.3389/fpsyg.2022.911605.

Arianti, B.F. (2018) “The Influence Of Financial Literacy, Financial Behavior And Income On Investment Decision,” Economics and Accounting Journal, 1(1), pp. 1–10.

Candy and Vira (2024) “Financial Behavior as Key Factors Affecting Indonesian Gen-Z Entrepreneurial Intention,” Polban: International Journal Of Applied Business Research, 6(2), pp. 152–172. Available at: https://doi.org/10.35313/ijabr.v6i02.363.

Gerrans, P., Abisekaraj, S.B. and Liu, Z. (Frank) (2023) “The fear of missing out on cryptocurrency and stock investments: Direct and indirect effects of financial literacy and risk tolerance,” Journal of Financial Literacy and Wellbeing, 1(1), pp. 103–137. Available at: https://doi.org/10.1017/flw.2023.6.

Hasan, Z.I. and Revinzky, M.A. (2025) “Fear of Missing Out and Social Media Usage as Catalysts for Entrepreneurial Interest through Entrepreneurial Motivation,” JEEMB: Journal of Economics, Entrepreneurship, Management Business, and Accounting, 3(1), pp. 35–45.

Hemayanti, N. and Nurabiah, N. (2025) “The Influence of Financial Literacy, Financial Technology and Fear of Missing Out on the Financial Behavior of Generation Z,” East Asian Journal of Multidisciplinary Research, 4(1), pp. 301–318. Available at: https://doi.org/10.55927/eajmr.v4i1.13276.

Kaddouhah, M. (2024) “An economic definition of ‘Fear of Missing Out’ (FOMO),” Finance Research Letters, 63, p. 105344. Available at: https://doi.org/10.1016/j.frl.2024.105344.

Kang, G., Park, C. and Jang, S. (2024) “A Study on the Impact of Financial Literacy and Digital Capabilities on Entrepreneurial Intention: Mediating Effect of Entrepreneurship,” Behavioral Sciences [Preprint].

Khan, M.S. et al. (2024) “Do we really need financial literacy to access the behavioral dynamics of Generation Z? A case of Oman,” Heliyon, 10(13), p. e32739. Available at: https://doi.org/10.1016/j.heliyon.2024.e32739.

Martaningrat, N.W.S. and Kurniawan, Y. (2024) “The Impact of Financial Influencers, Social Influencers, and FOMO Economy on the Decision-Making of Investment on Millennial Generation and Gen Z of Indonesia,” Journal of Ecohumanism, 3(3), pp. 1319–1335.

Meressa, H.A. (2023) “Entrepreneurial financial literacy - small business sustainability nexus in Ethiopia,” Cogent Business & Management, 10(2). Available at: https://doi.org/10.1080/23311975.2023.2218193.

Pokharel, J. and Maharjan, I. (2024) “Financial Behavior of Generation Z and Millennials,” Journal of Emerging Management Journal of Studies, 1(2), pp. 148–170.

Przybylski, A.K. et al. (2013) “Motivational, emotional, and behavioral correlates of fear of missing out,” Computers in Human Behavior, 29(4), pp. 1841–1848. Available at: https://doi.org/10.1016/j.chb.2013.02.014.

Ringle, C. et al. (2015) A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). SAGE Publications.

Sugiyono (2017) Metode Penelitian Kuantitatif, Kualitatif, dan R&D. Bandung: Alfabeta.

Usama, K.M. and Yusoff, W.F.W. (2018) “The Relationship Between Entrepreneurs’ Financial Literacy and Business Performance Among Entrepreneurs of Bauchi State Nigeria,” International Journal of Entrepreneurship and Business Innovation, 1(1), pp. 15–26.




DOI: http://dx.doi.org/10.56444/mem.v41i1.6736

Refbacks

  • There are currently no refbacks.


Copyright (c) 2026 Media Ekonomi dan Manajemen

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License