PERCEPTION OF GEN Z TOWARDS PERSONAL FINANCIAL

PLANNING

1
 CHAPTER-1INTRODUCTION
The phrase "money management" describes the plans and methods
used to choose how to spend the capital of a person, business, or
organization. Money management in personal finance refers to
spending, investing, and budgeting. Proactive money
management is possible with frequent or periodic financial
planning[1].Young people who practice sound money
management will benefit from it in the long run, as well as
society and the country as a whole. Undergraduates' academic
performance, social interactions, and mental and physical health
can all be negatively impacted by irresponsible spending[2].
Even though there are many resources available to help Gen-Z
become more financially literate, research indicates that most of
them do not know much about investing. Most young adults
have to learn how to manage their money by trial and error in the
absence of proper direction or knowledge, and they frequently
enter the workforce having never learned how to balance their
checkbooks or rein in their credit card spending [3]. Poor
financial decisions can affect individuals, families, and ultimately
entire communities due to a lack of awareness about money. This
knowledge vacuum could result from a lack of opportunity,
access, or even fear [4]. Budgeting and financial debt have been
linked by researchers (e.g., Lunt & Livingstone, 1992; Raynard
& Craig, 1995). Reduced spending and lower financial debt can
result from behavioral and personal characteristics such better
money management techniques (e.g., Walker, 1996) and higher
perceived budgeting skills (Lea & Webley, 1995). (Heath &Soll,
1996).A correlation has been shown by researchers between
budgeting and financial debt [5]. It has been demonstrated that
behavioral and personal factors—like better money management
skills from college—and higher perceived budgeting abilities can
result in lower levels of debt and expenditure during one's career
[6]. More information must be provided regarding the
significance of encouraging young people to save a portion of
their earnings or pocket money and to cultivate a strict money
management discipline based on frugal spending and wise
investment choices. 1.1 Understanding FinancesThe information
and abilities needed to make wise financial management
decisions are referred to as financial literacy. It entails
comprehending ideas like debt management, investing, saving,
and budgeting in addition to being able to use financial services
and goods.For people of all ages, but particularly for young
people who are just beginning their financial journey, financial
literacy is essential [7].
881European Economic Letters, Volume 13, Issue 3, 2023, ISSN
2323-5233, http://eelet.org.ukFinancial literacy has become even

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more important due to the remarkable changes in the financial
markets over the last ten years, and it is now considered a
necessary survival skill. Modern banking is now far more
sophisticated due to a variety of new consumer products,
services, and providers as well as technological advancements. It
is more crucial than ever for customers to understand their
alternatives and rights when it comes to financial services in
today's market [4]. 1.2 Generation Z The younger generation,
sometimes referred to as Gen Z or Gen Z, became influential in
every aspect of society. Gen Zs, who were born between 1997
and 2012, are recognized for being socially conscious and tech-
savvy because they were raised in a digital age[8]. Gen Zs are the
newest generation of consumers, and as such, they represent a
market that businesses should be paying attention to. Companies
that want to flourish in the market must comprehend consumers'
propensity to make purchases given their substantial purchasing
power and distinctive qualities. Adults of Generation Z, or those
between the ages of 18 and 25, have a higher level of financial
sophistication than any other generation did when they were in
the same age range. Only one in four Gen Z adults believe they
understand the stock market well enough to describe how it
operates to a friend, despite the fact that more than half of them
are already invested, with 26% of that cohort holding stock.
Furthermore, they feel the most secure about saving and spending
of all financial ideas [9]. In the 2022 Investopedia Financial
Literacy Survey, for example, 4,000 American individuals were
surveyed online and it was found that, compared to baby
boomers, Gen X, and millennials, just 46% of Gen Z feel
confident about their financial understanding.One explanation for
this could be that, in addition to traditional news stories, there are
a plethora of other sites people can get information in 2022, such
as YouTube, podcasts, and TikTok.Based on these premises, this
research investigates the views of Gen-Z undergraduate students
regarding financial literacy. The study also examines a number of
factors that affect the students' financial plans. 3. Literature
ReviewFinancial literacy is described as "the ability to make
informed judgments and to take effective decisions regarding the
use and management of money" in Huston's research [10].
Proficiency in money management, encompassing both
knowledge application and comprehension, is known as financial
literacy. The study comes to the conclusion that inadequate
financial capability contributes to food insecurity in addition to
low income. Caracciolo and Santamoopined found in their study
that financial literacy is critical for households to manage their
limited resources and steer clear of food insecurity by teaching
them how to handle their money more wisely[11]. According to
the global financial literacy study (Puneet 2012), which was

5
carried out in several nations, people's financial literacy is low as
a result of families not talking to each other about money
management. David S. Murphy and Scott Yetmar[12] conducted
a preliminary study titled "Personal financialplanning attitudes: a
study of graduate students," which revealed that most
respondents thought financial planning was important and that
they were interested in creating a plan, but very few thought they
had the skills and knowledge required to create their own. The
respondents' perceived requirement is to have confidence that
their financial planner would prioritize their needs.The
respondents gave less weight to planner independence, despite
the fact that some experts view this as the quintessential sign of
independence. To encourage client conferencesHeckman [13]
examined the factors that influence college students' perceived
self-efficacy in handling financial matters as well as the
predictors of their personal finance knowledge. The measure of
personal financial knowledge was a 20-item personal finance
index. When age and gender were held constant, the study
discovered a substantial and positive correlation between
financial knowledge and self-efficacy, suggesting that more
knowledgeable pupils should be more successful and self-assured
in financial affairs.Through his research, Ramaswamy evaluated
management students' awareness of financial literacy. Four basic
components of financial literacy were examined in the study:
definition and theories, degree and significance, restrictions, and
measures. Age, gender, language, race, and economic level had
little bearing on financial education, according to the analysis of
the survey [14]. In a study by Volpe et al., 454 Youngstown State
University students' personal investment literacy was evaluated.
The study investigated the connections between gender, academic
field, and experience and investing literacy. The meanscore
revealed that pupils' understanding of personal investment was
lacking. The findings showed that compared to male students
and business majors, female students and non-business majors
knew less about personal investing [15].

purchase any goods for consideration that has been paid for,
promised, or partially paid and partially promised; this includes
any user of the goods, aside from the person who purchases them
for consideration that has been paid for, promised, or partially
paid and partially promised; it also includes any user of the goods
under any deferred payment system when the use is done with the
consent of the buyer; however, it excludes anyone who purchases
the goods for resale or any other commercial purpose.
Financial transactions are made simpler by using e-wallets, which

7
only require a smartphone and can benefit from advanced
technology (Ariffin, AbdRahman, Muhammad, & Zhang, 2021).
According to Price's (2020) data, 26 percent of the 1,000
respondents indicated they made online purchases using e-
wallets. In 2021, e-wallet payment methods accounted for 43% of
all payment methods. For the benefit of global financial
inclusion, e-wallets can be a useful instrument (Bommer, Rana,
& Milevoj, 2022).
Financial reports can benefit from the use of digital wallets, even
for private use. The transaction history will include a clear record
of each transaction. You can use this information to create private
financial reports. Using an electronic wallet has several benefits,
such as lower risk while handling currency, less fraud, faster
payments, and energy and time savings (Shaw & Kesharwani,
2019). As a result, more people are using e-wallets due to the
financial advantages (Yang, Al Mamun, Mohiuddin, Nawi, &
Zainol, 2021).
hires or uses any services for consideration that has been paid for,
promised, or partially paid and partially promised, or under any
system of deferred payment. This includes any beneficiary of
such services, other than the person who hires or uses the services
for consideration that has been paid for, promised, or partially
paid and partially promised, or under any system of deferred
payment, provided that the first-mentioned person gives their
approval. It does not, however, include anyone who uses the
services for any kind of commercial gain.
A customer is a person who has the power to choose what they
want to buy at the store and is susceptible to the impact of
marketing and commercials ("Whatisaconsumer?Definition",
2019).
Despite the differences in the definitions provided above, they all
lead to the common understanding that a consumer is any
individual or organization that purchases products or services for
their own consumption. Marketing campaigns and advertising
have the power to sway consumers. A person or business is not
considered a customer if they purchase products or services with
the goal of reselling them.
Customer versus Consumer:
Although the terms "customer" and "consumer" are generally used
interchangeably, they are not the same. If someone pays for the
acquisition of products or services with the aim of reselling them
after using them partially for personal consumption, there's a
likelihood that they are the client.

Table1Comparisonbetweenconsumerandcustomer

Basisforcomparison Consumer Customer

The enduserofgoodsand Purchaser of goods and
services known as the services known as
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 Meaning consumer customer
A customer can be a
Resale NoResale business entity that
purchases goods for trade
i.e.resales to earn profits
Purchase of goods or Itisnotnecessarythat Customers always
services consumers purchase the purchase goods or services
goods
Purpose Consumption Resaleorconsumption
Costofgoodsor It Alwayspaidby the
services mayormaynotbepaidby a customer
consumer
Whocanbe? Individual,Familyor IndividualorOrganizationi.
Groupofpeople e., businessentity
Source:S,Surbhi(2017)

1.1 Perception:

Definition:

Perceptionistheapproximationofreality.Whenwe are exposedtocertain stimuli our

brain tries to make sense out of it. According to Daniel Schacter, Perception is the
organization, identification,andinterpretationofsensoryinformationtorepresentand
understand the presented information, or the environment.

According to Joseph Reitz, “Perception includes all those processes by

which an individual receives information about his 4 environments seeing, hearing,
feeling, tasting, and smelling.

Sensation+Meaning+Thinking+Memory=Perception

IMPORTANCE OF THE STUDY

The importance of this study is multifaceted. Firstly, it addresses the pressing need to
comprehend shifting consumer behaviors in response to advancing digital payment
methods. By focusing specifically on Generation Z, renowned for its distinctive
 consumption habits and adeptness with technology, the study delves into unexplored
territory, shedding light on how young consumers are adapting to the rise of e-wallets.
Secondly, the findings hold significant implications for marketing strategies. Businesses
rely on tailored approaches to engage their target audience effectively, and
understanding the factors influencing impulse buying among Gen Z can inform the
design of personalized offers, targeted advertisements, and strategic alliances with e-
wallet providers. Thirdly, the study has the potential to drive e-wallet adoption. By
deciphering the role of e-wallets in facilitating impulse purchases, businesses and
providers can refine user experiences, offer enticing promotions, and integrate social
features that appeal to younger users, thereby expanding their user base and transaction
volumes. Additionally, the study contributes to the broader academic discourse on
consumer behavior, digital payments, and generational trends, providing a nuanced
understanding of the intersection between technology, commerce, and consumer
psychology. Through its mixed-methods approach, this study aims to offer actionable
insights for both academia and industry, guiding future research endeavors and
informing strategic decisions in the evolving landscape of digital commerce.

INDUSTRY TRENDS

I. Key findings:
 Gen Z consumers want more from brands than affordable and high-quality products.
Brand authenticity, transparency, and sustainability are higher priorities for this age
cohort than for older consumers.
 Social media plays an increasingly important role in purchasing decisions, with Gen
Zers more likely to use social media to connect with their favorite brands, seek
inspiration, and research products.
 Gen Zers embraced mobile payments and digital wallets to make purchases with apps
like Cash App, Venmo, and Apple Pay leading the way.

II. Affordability, authenticity, and transparency resonate the most with Gen Z

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 When deciding to purchase from a brand, Gen Zer places a greater emphasis on
affordability, brand authenticity, and brand transparency when compared with older
generations. Among Gen Z consumers:

 62% say affordability is important to their purchase decisions, compared with 53%
overall.

 32% say brand authenticity plays an important role in their decisions, compared with
24% overall.
 25% value brand transparency, compared with 16% overall.
III. Factors Important to Purchasing Decisions

a) Consumers of all generational cohorts want to shop from companies whose values
are most aligned with their own, but Gen Z is the least likely to say they would
boycott.

Almost three-quarters (73%) of consumers say it is very important that brands share
similar values as they do, with little difference across age groups. Despite this, Gen Zers
are least likely to have boycotted a certain brand within the last year due to differences
in social and political views.

Only slightly more than one in three (36%) Gen Zers have done so, compared with 40%
of Millennials, 42% of Gen Xers, and 50% of Boomers

b) For Gen Z, connecting with brands on social media is standard practice.

% Follow Brands on Social Media

 The majority (61%) of Gen Zers follow brands that they like on social media, compared
with only one in three (34%) consumers among the older generations. Those who
follow brands on social media are much more likely to purchase products from said
brands: 43% say they are more likely to do so, compared with only 7% of those who do
not follow any brands.

Slightly less than one-third of Gen Zers (29%) and Millennials (30%) say they are more
likely to purchase from a brand that has a social media presence, whereas only 19% of
Gen X and 11% of Boomers share the same sentiment.

c) Likelihood to Purchase from a Brand with a Social Media Presence

d) Social media platforms play a growing role in the customer journey, especially for
Gen Z

Unlike older generations, Gen Zers find inspiration for their purchases from a diverse
array of sources, looking to shopping websites (51%), social media (47%), friends and
family (45%), and brick-and-mortar stores (44%). Millennials, Gen Xers, and Boomers
overwhelmingly prefer shopping websites such as Amazon or Target to discover ideas
when shopping and are less likely to turn to social media and physical stores.
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e) Source of Inspiration for Purchases

When researching products before making a purchase, more consumers turn to

YouTube than any other social media platform. 29% use YouTube to conduct their
research, followed by Facebook (21%) and Instagram (10%). While YouTube is most
popular among all generations, the online video-sharing platform is the overwhelming
destination for product research among Gen Zers.

Almost half (47%) of Gen Zers use YouTube to research products before
buying.Instagram (29%) and Facebook (21%) are much less frequented. YouTube leads
all platforms among Millennials (35%), Gen X (28%), and Boomers (18%), but older
groups are generally less likely to use social media to research potential purchases.

f) Social Media Platforms Used to Research Products

Family members and friends are the most trusted sources for product recommendations
across all age groups, with 60% deferring to their social circles for advice.
Recommendations from creators or influencers stand out among Gen Z (11%), trailing
family members (34%), and friends (31%), but ahead of other sources such as online
forums (7%) and celebrities (3%). Only 7% of Millennials trust influencers or content
creators the most.
g) Most Trusted Source for Product Recommendations

More than half of all Gen Zers (58%) and Millennials (56%) have made a purchase
based on a recommendation from a social media influencer or content creator, compared
with 46% of Gen Xers and 38% of Boomers. They are also more likely to purchase
more products due to social media.

49% of Gen Z purchase more clothing due to social media and about a third purchase
more beauty and skincare (34%) and technology (31%). Gen Z females are more likely
to purchase more clothing (55%) and beauty and skincare (57%), while clothing and
technology are purchased more frequently among Gen males (43% and 38%
respectively). Millennials display similar purchasing tendencies, although at lower rates.

h) YouTube, Instagram, Snapchat, and TikTok are the most popular social media
platforms among Gen Z

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 Facebook’s popularity (57%) among Gen Z adults, however, falls behind YouTube
(69%) and Instagram (67%), while maintaining its lead among Millennials (68%), Gen
X (71%) and Boomers (68%).
 Nearly half of Gen Z are on TikTok (46%), and more than half on Snapchat (58%),
compared with just 20% of all consumers on both platforms.
 Facebook continues to reign as the most popular social media platform, with two-thirds
(67%) of adults having used the social network within the last month. YouTube trails
closely (60%), while Instagram (37%), TikTok (20%), and Snapchat (20%) follow at a
distance.

i) Social Media Platform Used Within Last Month

Gen Zers are also much more active on social media: nearly two-thirds (64%) use social
media several times a day, compared with 47% overall. Among daily users, more than
half (54%) of Gen Z spend 2 or more hours browsing on social media, whereas only
41% of Millennials and 30% of Gen X have similar levels of usage.

j) Debit is the most preferred method of payment among Gen Z, but mobile payment
services are also popular.

More than half (52%) of Gen Z consumers prefer using a debit card when making
purchases; only one in five (19%) favor using credit cards. Preference for debit cards
declines with age, while preference for credit cards increases. Mobile payment services,
such as Apple Pay and Venmo. remain less popular than credit and debit cards, with
only 12% of Gen Xers, Millennials, and Gen Xers saying mobile payment services are
their preferred payment method.

Among mobile payment service providers, PayPal is most popular for consumers
overall, with 41% having used the service to purchase within the last year. More recent
services see higher levels of usage among Gen Z, with one in three having used Venmo
 (33%), Apple Pay (31%), and Cash App (33%) for purchases last year, similar to the
usage of PayPal (30%) for the demographic.

k) Mobile Payment Service Used to Make Purchases Within Last Year

Age

Answer Total 18 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65 and up

Unweighted N 5,934 306 637 795 1,086 1,375 1,735

Facebook 67% 57% 69% 68% 72% 71% 63%

YouTube 60% 69% 63% 63% 61% 55% 52%

Instagram 37% 67% 51% 40% 35% 25% 19%

TikTok 20% 46% 32% 20% 18% 11% 4%

Snapchat 20% 58% 36% 19% 12% 7% 2%

Twitter 19% 35% 24% 18% 18% 15% 13%

Pinterest 18% 19% 19% 21% 19% 17% 15%

Reddit 12% 23% 20% 13% 9% 6% 4%

None of the above 9% 3% 2% 8% 7% 12% 18%

Twitch 4% 17% 8% 3% 1% 0% 0%

Clubhouse 1% 1% 2% 1% 0% 1% 0%

Other (please specify) 5% 4% 4% 5% 5% 6% 6%

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 Age

Answer Total 18 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65 and up

Unweighted N 5,934 306 637 795 1,086 1,375 1,735

No answer 1% 3% 1% 1% 1% 1%
1%
IV. External Influencers:

a. Culture:
Each culture contains a subculture including religions, nationalities, racial groups, and
geographic regions. Culture and subculture are the determinants of human needs and
wants.

b. Socialclass:
Socialclassesreflectoccupation,income,education,andotherindicators. Their members
share the same values and preferences toward distinct productsand brand preferences.

c. Referencegroups:
Thisincludesallthe groupswhichhaveanindirector directinfluenceon human behavior and
attitude. This group includes but is not limited toneighbors, family, friends, co-workers,
professional groups, and trade unions.

d. Roleandstatus:
The position in each reference group is known as role and status.Each role
consists of activities that can be expected to be performed by humans, each role carries
a status.

e. Lifestyle:
Lifestyleisaninteractionbetween a human and his/her environment. People from the
same culture, reference group, and occupation might have different lifestyles.

f. Household:
HouseholdistheSecondarypurchaseofmanyconsumerservicesandgoods.

g. Value:
Behaviorandpreferencessituationsandovertime.Valuescandefinethebroaddesirablegoalsa
ndmotivatehuman behavioral actions.

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 h. Demographics:
It includes the various demographic factors related to the population like age, race, and
sex. It can influence human behavior.

1.2 Introduction to E-wallets: Definition:

An E-wallet is a type of electronic card that is used for transactions made online through
a computer or a smartphone.

Itis a kindof prepaid account where customers can store the money for any future
online transactions. It is a payment service through which individuals or businesses can
sendorreceivemoneydigitallyusing a tablet,computer,smartwatch,or smartphone.

E-wallets have a certain daily limit of transactions which currently is 20,000 INR in
India and can be increased up to 1 Lac after completing KYC.

PaymentprocessmodelsofE-wallets:
E-walletsareworkingonthefollowingpaymentprocessmodels (Angela Scott-Briggs,
2016),

i. Mobile-basedbillingPaymentscan bereceived/sentthroughtheirmobile service

provider.
ii. SMS-basedtransactions SMS-baseddebit/credittransactionsfromthe configured
bank account, mobile service, or credit card.

iii. MobilewebpaymentsReceive/sendpaymentsthroughamobileapp.
iv. Near-field communications (NFC)It is a set of communication protocolsthat enable
two electronic devices, one of which is usually a portable device such as a
smartphone to perform payments in a particular range.
Steps to using the E-wallet,
Step I: Downloadandinstallthe E-walletapp onthe smartphonethroughGoogle Play or
directly from the E-wallet website.

Step II: Sign up for the E-wallet using your mobile number and Email address.

Verification of account is required using OTP on the registered mobile number to get
registration done.

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Step III: After completion of the registration process debit or credit cards should be
linked to E-Wallet. If a card is not available then the existing bank account can also be
linked to E-Wallet to load the money in the wallet.

Step IV: Once the cards have been linked or cash loaded into the e-wallet, you will be
able to make payments to third parties by accessing the e-wallet application and
entering your PIN/scanning QR/requesting OTP, etc. Method of payment can vary from
E-wallet to E-wallet but a popular method is scanning the merchant's QR code.

KYC can be done by visiting the nearest authorized KYC center by E-wallet
organization.Nowadaystoattractcustomersmanye-walletsprovidethe facility of on-door
KYC ex-Amazon Pay and Paytm.
 CHAPTER-2REVIEW OF LITERATURE
The study has adopted a systematic review process which can include the steps of
identifying, evaluating, and interpreting all the research literature (both
empiricalandperspective)availableonaparticularareaofinterest.The motive for
conducting a systematic review is to summarize the theoretical aswell as empirical
evidence regarding a particular research topic. This activity helps in identifying the
research gaps in the available literature to suggest the areas for future research and
appropriately position new research activities the
systematicreviewprocessforthepresentstudyhasbeengiveninFigure 11.

The review process began with a literature search with the keywords and their
combination which is related to research topics such as; E-Payments, E-wallets,
Mobilewallets,UTAUTcashlesstransactions,Consumerbehavior, consumer
satisfaction, consumer perception, consumer loyalty, repurchase intentions, etc.
This search resulted in the retrieval of 260 articles and books.The articles were then
screened based on title and abstract resulting in retention of 100articlesand books.
Finally, an inclusion criterion was appliedtoscreenout thearticlesthatdidnot
fallunderthesecriteria.Aftertheapplication of the
inclusioncriterion,61articlesandbookswereconsideredforthereview.
Thestudygivesabriefoverview(purpose,methodology,mainfindings,and use of
thisfindingin t h e study) of these61research/literaturereview papersand books that
have been conducted since 2000 but some of the literature published
before2000isalsoconsideredforreviewbecauseoftheirrelevancywiththis
study.
Figure11Literaturereviewscheme

Articles and Articles and Articles and

booksassesindetails(n=26 booksassesindetails(n=10 booksincludedinreview(n
0) 0) =61)

Articles & Articles &

booksexcludedonbasi booksexcluded on basis
softitles and abstracts ofinclusioncriteria(n=39
)
Keywords-E-Payments,E-
wallets,Mobile wallets, UTAUT
cashlesstransactions,Consumerbehavi
our,consumersatisfaction,consumerpe
rception, consumer loyalty,repurchase
intentions etc.
 Consumerperception:

Safeenaetal(2010)intheirresearcharticletitledE-businessValue:A
CaseStudyonInternet Banking” determinethe

Findings show that perceived usefulness, perceived ease of use, consumer

awareness, and perceived risk are the important determinants of online banking
adoption and have strong and positive effects on customers to accept online
banking systems.
Importantofthispaperin the study-
To understand the determinants of consumer perception such as
perceivedusefulness,perceivedeaseofuse,consumerawareness,and perceived risk.
Kapoor(2012)inhisbooktitled Behaviour:TextandCases theprocessof
perception,fromhowitisorganizedtohowitisinterpreted. According to the author,
perception is simply the process of selecting, organizing, and interpreting
information inputs which are further used in the decision-making processby
consumers.

Figure12Theperceptionprocess

Source-Kapoor(2012)

The book states that the main factors that affect consumer perception are intensity,
size, and novelty. The key attributes of consumer perception are listed below,
- Productpositioning
- Perceptionofprice
- Quality of products and service offerings Importance of this book in the study.

-
 Consumerbehavior:
As stated by Mowen (1987) in his book "Consumer Behavior," one of the main and essential
elements of consumer behavior is the consumption of goods or services. The culmination of
people's actions before and after a purchase, typically in an attempt to satisfy their desires, is
consumer behavior.

The author describes the lessons that consumers acquire about consumption and consumer
socialization, with a focus on younger consumers. This procedure has an endless length. The
proposed consumer socialization model illustrates the direct influence that socialization
agents have on consumer behavior. The model incorporates the following socialization
resources: instructors, students, families, and the media.
The importance of this book for research

to understand how friends, family, and other social factors influence the behavior of
consumers. to examine the ways in which various social factors—advertising, media, etc.—
influence the purchases that people make.
According to Loudon and Della Bitta (1993) in their book Behavior, "Consumer behavior is
the decision process and physical activity in which individuals engage in evaluating,
acquiring, using, or disposing of goods and services."
The authors developed a theoretical model in order to comprehend consumer behavior more
thoroughly. This model can be used to illustrate the different types of consumer behavior.The
proposed model delineates the stages that consumers go through during the decision-making
process, accounting for both external and internal factors that impact consumer behavior.

EXTERNALFACTOR INTERNALFACTOR
 Culture  Attitude
  Subculture  Personal experience
 Social Class  Attention
 Social Groups  Memory, etc.
 Family, etc.

The significance of this book for the study lies in its understanding of the various
stages of consumer behavior as well as the internal and external forces that
influence it.
In their literature review study, Gabbott and Hogg (1994) examined the body of
research on service marketing and consumer behavior. actions.This study's
primary goal is to investigate a problem that arises when customers buy services
rather than products. Five distinct service attributes—intangibility, inseparability,
heterogeneity, perishability, and ownership concept—are examined, and the effects
these attributes have on customers are positioned within the consumer behavior
theory's information processing model.
The study came to the conclusion that not only do services pose a number of issues
for customers, but customer feedback regarding goods might not apply to services
as well. Integration between service consumption, service encounter, and service
design may be provided by the personal interaction between the service provider
and customers, such as the degree of empathy or compassion or investigating the
alternative behavioral viewpoints.Before coming to a conclusion on a solution to
the purchase issue that customers are facing, the author places a strong emphasis on
comprehending consumer behavior, and in particular, consumer responses related
to service problems.

The purpose of this article is to better understand consumer concerns and how to
solve them while acquiring services. Features of services and the ways that
consumer behavior differs when buying services versus products.
Mullen (2001) describes consumer behavior as the decision-maker or consumer
behavior in the goods or service marketplace in his book "Consumer Behavior."
As per the author's assertion, consumer behavior is the culmination of the choices
that consumers make regarding the selection, utilization, and procurement of
goods, services, encounters, individuals, and concepts. By watching three distinct
roles that consumers play—buyer, payer, and user—marketers can gain an
understanding of customer behavior.
The purpose of this book is to help researchers better understand consumer
behavior and decision-making when it comes to buying products and services.
procedure.
In their literary work "Consumer Behavior," Dennis, C. et al. (2009) examine e-
consumer behavior and marketing-related problems. This discursive, conceptual
study is founded on a methodical examination of the existing literature.The Theory
of Reasoned Action family of theories supports the author's dynamic two-stage
model, which posits that conduct is determined by an individual's attitudes, beliefs,
and intentions towards executing that behavior.
The authors contended that when attitudes influence e-consumer behavioral
intention, real purchases are made by individuals. According to the study's
findings, a range of elements, including consumer qualities, social factors,
emotions, situational factors like ease and variety, individual circumstances and
frequency of purchases, product characteristics, and trust, might impact e-
consumers. According to the authors, e-commerce is expanding far more quickly
than traditional retail because e-retailers, policymakers, corporate entities, etc.,
recognize that e-consumer behavior is essential to their ability to compete in the
market.

The purpose of this article is to better understand the behavior and decision-making
of online consumers when they buy goods and services from e-commerce
websites.E-consumer behavior is influenced by several things.
Consumer behavior is defined as follows by Mujumdar (2010) in his book
Behaviour:Insightsfrom Indian Market: "The study of how, why, and what people
do when they buy products or avail some services."It aims to comprehend how
buyers make decisions.
The author explained in detail how consumer behavior in the purchasing decision-
making process is influenced by customer beliefs, perceptions, experiences, and
learning. The author also went into detail about the significance of individual
characteristics like age, education, and so forth, as well as the impact of reference
groups on customer behavior while making purchases of goods or services.
The significance of this book for the research is twofold: first, it helps to
comprehend the many personal variables and reference group influences on
consumer behavior during the study; second, it provides secondary insights on the
relationship between experience and learning and consumer behavior in the process
of making purchases.
In their study paper titled "Factors influencing consumer behavior towards store
brands evidence from the French market," Diallo, M. et al. (2013) examined the
ways in which store familiarity, consumer perception, and consumer behavior all
affect store brand purchasing behavior. This study analyzed data gathered from 266
respondents in various urban France districts to draw conclusions.
The data analysis's conclusions demonstrate that value consciousness, store image
perceptions, price-image, and SB attitude all significantly and favorably influence
store brand buying behavior, or customer behavior. This study is restricted to store
brands from different mass retailers, and it does not account for any product kinds
or categories.According to the authors, understanding the popularity of store brands
among customers and how these aspects can affect consumer purchasing behavior
requires an understanding of key elements including store image perceptions, value
consciousness, and SB price-image on SB purchase behavior.
Importanceofthispaperin the study-

To understand how brand-related factors influence consumer purchasing behavior-

making process.
 Source-Lake(2009)

ZhangandBenyoucef(2016)throughtheirliterarywork“Consumer Behavior in
Social Commerce: A Literature Review” statethat the emergenceof
socialcommercehasbroughtimportantchangesnotonlyinbusinessesbut also in
consumers. Authors use the structured review of literature approach to draw
meaningful insights related to consumer behavior in social science. They studied
the social commerce studies on how consumers behave on social networking sites
and proposed an integrative framework to understand consumer behavior using the
stimulus organism response model and the five-stage consumer decision-making
process.
The authors emphasize an understanding of consumer behavior which is
verycriticalfororganizationsthataimtobetterinfluenceconsumers. This paper explains how stimulus
factors can affect organism factors, which further lead to response factors. The author believes that the
proposed framework can help in a holistic understanding of consumers.
OBJECTIVE:
1. Understanding Attitudes and Behaviors: Explore Gen Z's attitudes and behaviors
towards personal financial planning. This includes their perceptions of budgeting,
saving, investing, and debt management.
2. Identifying Influencing Factors: Determine the factors that influence Gen Z's
approach to personal financial planning. This could involve family upbringing,
education, cultural background, socioeconomic status, and exposure to media.
3. Assessing Knowledge Gaps: Identify any knowledge gaps or misconceptions that
Gen Z may have regarding personal finance. This could include their understanding of
concepts like interest rates, credit scores, loans, and the stock market.
4. Exploring Preferred Learning Channels: Investigate the preferred channels and
methods through which Gen Z prefers to learn about personal financial planning. This
could include social media, online resources, formal education, peer discussions, or
financial literacy programs.

Hypothesis 1:

Gen Z individuals who have received formal financial education will demonstrate more
proactive behaviors towards personal financial planning compared to those who have not
received such education.

Hypothesis 2:

Gen Z individuals who regularly engage with personal finance content on social media
platforms will exhibit greater interest and knowledge in financial planning compared to
those who do not engage with such content.

RESEARCH METHODOLOGY:
 The concept of research is commonly accepted to include the methodical gathering,
recording, and analysis of data pertinent to issues with the marketing of goods and
services. It will be possible to address the subject matter methodically by using
research procedures. All research procedures are built upon the research plan. In
connection with this program, the following activities are carried out.
Research Design
A descriptive research approach is used in the study. If the researcher has prior
knowledge of the events or issues under inquiry, descriptive research may be utilized
to answer a variety of inquiries. The methodology and the opinion survey method will
be used to perform the study. Data Collection Method
In order to assess the current problem, secondary sources of information will be
looked at. We will gather secondary data from a variety of secondary sources,
including books, journals, websites for study papers, and other pertinent sources.

Secondary Data:-
To gather secondary data, the intranet, journals, and manuals were employed.
To achieve the intended outcomes, websites and the final data were subjected to a
thorough analysis.

Figure1

Since our target audience were Gen-Z’s, respondents were mainly between the age group of
 18 to 25. Out
ofwhich95.2%werebetweentheagesof18to21,and4.8%wereagedbetween22to25.

Q)Profession

Figure2

Outofthetotalrespondents,92.9%werestillcollegegoersandtheresthadrecentlygotjobsindiffere
nt companies.

Q)Howoftendoyouinvest?

Figure3
Fifty percent of respondents said they had once made an investment in a variety of financial
instruments when asked how frequently they did so.In response, 28.6% said they regularly
made investments in various asset classes.Of those surveyed, 21.4% had not yet made any
financial transactions.

Q)Doyoufollowfinancialinfluencersonsocialmedia?
 Figure4

Of the participants, 57.1% were aware of different financial influencers and followed them on
social media.The others were not as eager to follow the influencers, even if they had heard of
them.

Which social media platform do you visit most regularly to get financial guidance or
information?

Figure5

YouTube is where 64.3% of individuals think financial influencers should upload their
content.28.6% of people don't mind that they share videos on Instagram.On Facebook, no one
wants influencers to stop posting educational films.

How did you find out that financial influencers were producing videos on financial literacy?

The majority of respondents learned about financial influencers from social media app
recommendations.This demonstrates how influencers used social media to support growth in
numbers.

.
 Figure6

Q)Would youagreethatFinancialInfluencersdoagood jobofsimplifyingcomplexfinancial

concepts?

Figure7
The material of financial influencers is deemed understandable and relatively direct by nearly
60% of respondents. Financial influencers' main objective is to simplify difficult concepts for
the broader audience.They are pretty close to achieving that level, according to this particular
survey.

Q) Do you think that by withholding the risk associated with their actions, financial
influencers might fool unsuspecting investors?

Forty-five percent of the respondents were unsure about the stuff that the influencers share.
Surprisingly, 26.2% of respondents are positive that financial influencers can readily mislead
less knowledgeable consumers about the risks involved in investing.
.
 Figure8

Q)WouldyouagreethatGen-
Z’shungertoinvesthasboomedthefinancialinfluencers’industry?

Figure9

Around 78.6% of the total respondents strongly believe that the industry of financial
influencers has seen a meteoric rise due to the demand created by the Gen-Z’s. There is
also a scope for the industry to rise even further as more and more people are going to start
investing and taking help from content put out by the influencers.
Has listening to these financial influencers helped you make money?
Approximately 69% of people who have listened to these financial influencers have at some
point made money.This demonstrates that the information released is typically reliable and
can support financial decisions.

Figure10

Q)Wouldyourecommendotherstofollowthesefinancialinfluencers?

Figure11
About half of all respondents are hesitant to recommend financial influencers to people they
know. Nearly 43% say it's acceptable to suggest influencers for different kinds of financial
advice. The public has not been recommended to follow these influencers by
Therestarenotsoken.

SUMMARY
Gen Z investors are advised to conduct independent research instead of blindly relying on
financial influencers.
To increase their reach, financial influencers should refrain from overhyping popular
financial assets.
Financial influencers should align their material with investor expectations.
We believe that novice investors have to be well-informed while observing or adhering to
various financial influencers for their financial choices.
Gen Z should only trade diverse financial assets after taking their capital allocation and risk
profiles into account.

CONCLUSION

We can conclude that social media is a veryeffective platformfor financial influencers to

put out their content and for new age investors, a better source for gaining financial
knowledge. In the rising industry of financial influencers, the number of creators is just
going to increase with a view of making it easier and simpler to understand for their
viewers and help them gain appropriate financial knowledge. The main aim of investors
should be protecting their capital and not expecting super high returns just because
influencers were talking about it in their videos.
In conclusion, understanding Gen Z's perception towards personal financial planning is
crucial in shaping effective strategies to improve their financial literacy and well-being.
Through this exploration, it is evident that Gen Z holds diverse attitudes and behaviors
towards financial planning, influenced by various factors such as upbringing, education,
culture, and socioeconomic status. While some demonstrate proactive behaviors like
budgeting, saving, and investing, others may struggle due to lack of knowledge or
exposure to financial concepts. Identifying these influencing factors and knowledge gaps
is essential for designing targeted interventions to enhance financial education among Gen
Z. Moreover, recognizing their preferred learning channels, such as social media and
online resources, can facilitate the dissemination of financial knowledge in a more
engaging and accessible manner. Overall, addressing the financial literacy needs of Gen Z
is not only beneficial for their individual financial well-being but also for the broader
economy, as it fosters responsible financial behaviors and mitigates the risks of debt and
financial instability in the future. Thus, policymakers, educators, and financial institutions
must collaborate to develop comprehensive initiatives that empower Gen Z with the
necessary skills and knowledge to navigate the complex landscape of personal finance
effectively. By investing in their financial education and promoting a culture of financial
responsibility, we can equip Gen Z with the tools they need to achieve financial success
and security in the long term.
In conclusion, the perception of Generation Z towards personal financial planning reflects
a complex interplay of attitudes, behaviors, influencing factors, knowledge gaps, and
preferred learning channels. Through a nuanced examination of these aspects, it becomes
evident that Gen Z's financial outlook is diverse and multifaceted. While some members of
this generation exhibit proactive financial behaviors, such as budgeting, saving, and
investing, others may face challenges stemming from a lack of financial literacy, limited
exposure to financial concepts, or socio-economic constraints. Understanding these
disparities is essential for devising effective strategies to enhance financial education and
empower Gen Z with the skills necessary to navigate the financial landscape successfully.
The attitudes and behaviors of Gen Z towards personal financial planning are shaped by
various factors, including familial upbringing, educational experiences, cultural
influences, peer interactions, and socioeconomic backgrounds. Family plays a pivotal role
in instilling financial habits and values during formative years, yet not all individuals have
access to such guidance. Educational institutions also bear a significant responsibility in
equipping Gen Z with practical financial knowledge and skills, but the current state of
financial literacy education remains inadequate in many regions. Additionally, cultural
norms and societal perceptions may impact how Gen Z perceives and manages money,
highlighting the need for culturally sensitive financial education initiatives.
Identifying and addressing the influencing factors that shape Gen Z's financial attitudes
and behaviors is crucial for promoting financial well-being and resilience within this
demographic cohort. By recognizing the unique challenges faced by different segments of
Gen Z, policymakers, educators, and financial institutions can tailor interventions to meet
their specific needs effectively. This may involve implementing comprehensive financial
literacy programs in schools, leveraging digital platforms and technology to enhance
accessibility and engagement, providing targeted support for marginalized or
disadvantaged communities, and fostering a culture of open dialogue and peer-to-peer
learning.
Furthermore, bridging the knowledge gaps among Gen Z regarding personal finance
requires a concerted effort to improve financial education curricula, enhance teacher
training, and leverage innovative teaching methodologies. Educating Gen Z about
fundamental financial concepts, such as budgeting, saving, investing, debt management,
and risk mitigation, is essential for equipping them with the skills necessary to make
informed financial decisions throughout their lives. Moreover, promoting critical thinking
and decision-making skills can empower Gen Z to navigate complex financial scenarios
and adapt to evolving economic landscapes.
Understanding Gen Z's preferred learning channels is instrumental in designing effective
financial education initiatives that resonate with this digital-native generation. With their
widespread use of social media, online platforms, and digital tools, Gen Z seeks
accessible, interactive, and personalized learning experiences. Leveraging these channels
can facilitate the dissemination of financial knowledge in engaging formats, such as
videos, podcasts, gamified applications, and social media campaigns. Integrating real-
world examples and case studies relevant to Gen Z's experiences can enhance the
relevance and effectiveness of financial education efforts.
In conclusion, addressing the financial literacy needs of Generation Z is not only a matter
of individual empowerment but also a strategic imperative for fostering economic
stability, social mobility, and sustainable growth. By investing in comprehensive financial
education initiatives that cater to the diverse needs and preferences of Gen Z, societies can
equip the next generation with the tools and knowledge they need to achieve financial
security, pursue their aspirations, and contribute positively to society. Collaborative efforts
between governments, educational institutions, financial organizations, and community
stakeholders are essential to creating an enabling environment for financial empowerment
and inclusion. By prioritizing financial education as a fundamental aspect of youth
development, we can pave the way for a more prosperous and resilient future for
Generation Z and generations to come.
This conclusion encapsulates the key aspects of Gen Z's perception towards personal
financial planning, offering insights into the challenges, opportunities, and potential
solutions to enhance financial literacy and well-being among this demographic cohort.
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