Influence of Financial Literacy, Self-Control, and Risk Tolerance on Financial Well-Being with Investment Decision-Making as a Mediating Variable in Generation Z in Jambi City

Raras Aroyo (Master of Accounting Study Program, Jambi University, Jambi, Indonesia)
Wirmie Eka Putra (Master of Accounting Study Program, Jambi University, Jambi, Indonesia)
Rita Friyani (Master of Accounting Study Program, Jambi University, Jambi, Indonesia)

Al-Kharaj: Journal of Islamic Economic and Business
Vol. 8 No. 1 (2026): All articles in this issue include authors from 3 countries of origin (Indonesi

This study examines the influence of financial literacy, self-control, and risk tolerance on the financial well-being of Generation Z in Jambi City, where low literacy and impulsive behavior threaten financial stability (OJK, 2024). The aim is to examine the direct and mediating relationships in investment decision-making. Using a quantitative explanatory approach with PLS-SEM, the Generation Z population aged 18-28 years (133,114 people) was purposively sampled to obtain 100 respondents via a Google Form questionnaire. SmartPLS analysis included validity, reliability, and hypothesis testing. The results showed that financial literacy (β=0.405, p<0.01) and self-control (β=0.391, p<0.01) had a direct significant effect on financial well-being; investment decision-making mediated partially (H8-H9 were accepted), while risk tolerance was not significant (H3, H7, H10 were rejected). The conclusion recommends a self-control-based digital literacy program to improve sustainable investment decisions.