Through data published by Statistics Indonesia (BPS) based on the results of the 2025 Intercensal Population Survey, it was recorded that Indonesia's population had reached 284.67 million. According to this data, Generation Z, often referred to as Gen Z, constitutes the largest group, comprising 24.34% of Indonesia's total demographic.

With such a significantly large Gen Z demographic, this certainly presents an opportunity for Indonesia to accelerate economic transformation and boost the domestic market through financial literacy. However, in reality, there are several challenges in building financial wisdom that must be recognized, stemming from both behavioral patterns and the culture ingrained within the Gen Z demographic, as well as today's modern culture.

To address and simultaneously uncover the root of these challenges, a lecturer from the Management Program at Dian Nusantara University (UNDIRA), Mr. Basuki Toto Rahmanto, S.E., M.M., M.Ak., alongside an UNDIRA student, Nessa Atfella, conducted a study exploring how lifestyle and self-control can impact financial literacy patterns.

The study revealed that the first step in determining the effectiveness of financial literacy is through a questionnaire survey, coupled with observations of Gen Z's spending culture.

As we have recently observed, despite rising inflation rates and a declining capital market index, the majority of Gen Z still flock to shopping centers to purchase various goods holding subjective values closely tied to emotional aspects—a phenomenon often associated with the 'lipstick effect'.

According to their research findings, several contributing factors influencing this behavior are related to advancements in information technology, which provide information transparency and generate 'viral' phenomena. Based on supporting data from the Association of Indonesian Internet Service Providers (APJII) in 2023, the role of social media in delivering product information and fostering interaction serves as a strong catalyst for consumptive behavior, which is sometimes difficult to control for 95% of Gen Z. Furthermore, the convenience of digital payments and the rapid development of e-commerce platforms indirectly amplify the incentive to behave consumptively.

In this research, four variables were applied as the benchmark standards for the study's conclusions: lifestyle, self-control, the level of financial literacy acquired, and consumptive behavior.

The researchers opted to use SPSS software to streamline the data management process. The study successfully gathered 79 samples from a total of 623 clusters of UNDIRA student participants. The application of the Likert scale method in the questionnaire design was also deemed effective in facilitating the collection of the students' opinions.

Although the study possessed a relatively solid foundation, considering that opinions carry a potential for bias, several tests were conducted, including a reliability test, Cronbach's Alpha, a normality test, and a multicollinearity test. These tests were utilized to ensure the opinion data was objective, consistent, and viable for statistical analysis, aiming to minimize response anomalies and inconsistencies—thereby maintaining the credibility of the survey responses.

The findings indicate that students' consumptive behavior does not simply stem from isolated decisions, but is rather the outcome of a complex interaction among their established lifestyle, their ability to exercise self-control, and their depth of financial understanding. In other words, the lower a student's self-control and financial literacy, the more vulnerable they become to consumptive urges, which are continuously amplified by the surrounding digital ecosystem.

Moreover, this research is expected to foster a collective awareness that financial literacy is not merely a skill for managing money, but an essential life skill that needs to be instilled from an early age. This ensures that Gen Z will not just become reactive consumers, but wise individuals capable of making sound financial decisions amidst the rapid flow of information and the temptations of modern lifestyles.