Analyzing Gen Z’s Financial Behavior in Control of Spending in Ho Chi Minh City

This study examines the relationships among financial literacy, financial behavior, materialism, compulsive buying, and propensity to indebtedness among Generation Z in Ho Chi Minh City, Vietnam. Using survey data from 139 respondents and Partial Least Squares Structural Equation Modeling (PLS-SEM), the results show that financial literacy positively influences financial behavior. Financial behavior, in turn, significantly affects materialism, compulsive buying, and indebtedness, indicating its central mediating role. Individuals with weaker financial behaviors are more prone to consumption-driven values, impulsive purchasing, and debt accumulation. The findings highlight that financial literacy improves financial outcomes primarily through behavior, underscoring the need for financial education programs that emphasize behavioral skills alongside financial knowledge.