The Influence of Financial Literacy, Social Media, and Peer Influence on Investment Interest in Generation Z

Abstract - The rapid digital transformation in the financial sector has significantly lowered barriers to entry, leading to an unprecedented surge of Generation Z retail investors in the Indonesian capital market. However, this phenomenon raises critical concerns regarding whether their investment interest is driven by robust fundamental knowledge or merely fueled by digital social trends. This study aims to empirically analyze the influence of financial literacy, social media exposure, and peer influence on the investment interest of Generation Z. Employing a quantitative approach with a cross-sectional survey design, data is collected from Generation Z individuals, specifically university students and fresh graduates. The expected findings aim to reveal the partial and simultaneous effects of these internal cognitive and external sociological variables on the formation of investment interest. The insights generated from this study are anticipated to provide strategic recommendations for financial regulators and educational institutions. By understanding these behavioral drivers, stakeholders can develop targeted, digitally-adapted financial literacy programs designed to mitigate the risks of impulsive herding behavior and FOMO (Fear of Missing Out), ultimately promoting sustainable and rational investment decisions among young investors.