Mediating Effect of Impulsive Buying on the Relationship between Financial Behavior, Materialism, and Savings Decision of Generation Z

Abstract

This study examines the mediating effect of impulsive buying on the relationship between financial behavior, materialism, and savings decision of Generation Z. Data were gathered from 452 members of the Gen-Z cohort who at the time of data collection, were actively enrolled in Osun State-owned tertiary institutions. Data analysis was performed with the aid of a structural equation model. The study establishes that financial behavior (FB) has a positive and significant link to savings decisions (SD) but has no significant effect on impulsive buying. It was also confirmed that materialism (ML) has an inverse relationship with savings but has a positive and significant influence on impulsiveness. The study also reveals that impulsive buying has no significant influence on savings decisions. In addition, it was affirmed that impulsive buying did not mediate between financial behavior, materialism, and savings decision. Consequently, the study recommends that education regulatory authorities should persuade all tertiary institutions in the country to integrate financial education as a compulsory part of the school curriculum at all levels. This will go a long way to improve Gen-Z’s financial wellbeing such as purchase decisions, spending self-control, cash management, savings and investment, rational decision-making and solvency, and self-predictions. Keywords: Financial Behavior: Impulsive Buying: Materialism: Savings: Gen-Z