Financial literacy cognitions and optimal financial behavior

In this paper we propose and specify three distinct horizon dependent financial literacy cognitions generators, financial—knowledge, attitude, and awareness, determining either positive or negative financial behavior. Utilizing survey respondents, we find a distinct positive and significant effect of the three cognitions in the case of positive financial behavior, and mixed-partial effect facing negative financial behavior. Furthermore, the three cognitions' moderation with Generation Z control, amplifies the financial attitude effect and diminishes financial awareness impact, hence, highlighting the importance assigned by Gen Z to financial issues in the short-term, as opposed to lessened financial importance in the long-range.