Perpustakaan Digital ITB

Homeownership has become increasingly difficult for Generation Z in Jakarta due to rising property prices and affordability pressures. This study examines the influence of financial literacy, financial attitude, and income level on saving behavior for homeownership among Generation Z in Jakarta. A quantitative approach was employed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4, based on data collected from 156 respondents through purposive sampling. The results reveal that all three variables positively and significantly influence saving behavior, jointly explaining 52.5% of its variance. Income level is the strongest and most significant predictor, financial attitude records the largest effect size, and financial literacy the smallest. Notably, despite respondents demonstrating very high objective financial knowledge (92.4% correct), objective and perceived literacy are virtually uncorrelated (r = 0.04), and actual income is essentially uncorrelated with perceived income adequacy (r = ?0.02) — suggesting the primary behavioral barrier is not knowledge deficit but its translation into action and financial capacity. These findings confirm the Theory of Planned Behavior and behavioral finance perspectives while offering a distinctive contribution beyond dominant literacy-centric frameworks. The study provides practical implications for Generation Z, financial institutions, regulators, and policymakers in promoting healthier saving behavior toward homeownership. Keywords: Financial Literacy; Financial Attitude; Income Level; Saving Behavior; Homeownership; Generation Z; PLS-SEM