Generation Z is the largest demographic group in Indonesia and is expected to play a pivotal role in shaping future investment trends. While this generation is technologically savvy and has broad access to financial information, not all individuals demonstrate adequate investment readiness. Various social and economic factors—such as parental education, socioeconomic background, and financial access—are believed to influence their preparedness to engage in capital market activities.
This study aims to examine the influence of social demographic factors and investment literacy on the investment readiness.
A quantitative approach was employed by distributing a structured online questionnaire to 400 Generation Z respondents in West Java. The collected data were analyzed using multiple linear regression.
The findings reveal that social demographic factors significantly influence investment readiness among Generation Z. Furthermore, investment literacy has a strong and statistically significant impact and is the dominant predictor of investment readiness. When tested simultaneously, both variables show a significant joint effect, indicating that a combination of social background and financial knowledge is critical in determining how prepared young individuals are to invest.
This research contributes to the literature on behavioral finance and investment literacy by empirically validating the role of social and cognitive factors in shaping financial behavior. Practically, the findings call for education institutions, policymakers, and financial institutions to design more inclusive investment education programs tailored to the socio-economic characteristics of Generation Z. Future research is encouraged to explore psychological and technological factors that may also influence investment readiness among young people.