Determinants of Generation Z and Millennial Investment Decisions in Bekasi City: The Role of Financial Literacy, Financial Inclusion, and Risk Tolerance

This study aims to examine the factors influencing Investment Decision (ID) by analyzing the impact of Financial Literacy (FL) and Financial Inclusion (FI), as well as Risk Tolerance (RT) as a mediating variable. Using a quantitative approach, the data were analyzed using the Partial Least Squares Structural Equation Modeling (PLS-SEM) method through the bootstrapping technique (n = 1,000 resamples). Empirical results show that Financial Literacy has a positive and significant direct effect on Investment Decisions and Risk Tolerance. Similarly, Financial Inclusion significantly affects Risk Tolerance. Furthermore, Risk Tolerance has been proven to have a positive and significant effect on Investment Decisions. However, Financial Inclusion does not show a statistically significant direct effect on Investment Decisions. These findings underscore the importance of Financial Literacy and Risk Tolerance in driving appropriate investment choices, and indicate that Financial Inclusion more significantly influences investment behavior indirectly through the formation of individual risk tolerance.