The Influence of Income on Generation Z Investment Decisions in South Jakarta

Andini Andini(1), Sri Astuti(2), Moh. Supendi(3),

DOI: https://doi.org/10.46843/jpm.v4i3.479


(1) Faculty of Teacher Training and Education, Universitas Muhammadiyah Prof. Dr. Hamka, Indonesia
(2) Faculty of Teacher Training and Education, Universitas Muhammadiyah Prof. Dr. Hamka, Indonesia
(3) Faculty of Teacher Training and Education, Universitas Muhammadiyah Prof. Dr. Hamka, Indonesia

Abstract

This study examines the influence of personal income on investment decisions among Generation Z in South Jakarta, situating the analysis within a growing body of global research that links financial capacity to the investment behavior of young people. While prior work has documented that higher income levels increase risk-taking and portfolio diversification among young adults, little is known about this phenomenon in the Indonesian context. Guided by behavioral finance theory and the Theory of Planned Behavior, we adopt a quantitative design with 101 purposively selected respondents, collecting data through an online questionnaire. Simple linear regression, Spearman correlation, and ordinal regression (SPSS v30) reveal a strong positive relationship between monthly income and investment decision intensity (r = 0.669, p < 0.001), with income accounting for 98.7% of the explained variance in the ordinal model.

Keywords

Income, Investment, Generation Z, South Jakarta.

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