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Factors influencing the choice of savings and investment instruments by generation Z: The experimental study using neuroequipment

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  • Kashirina, A.

    (Lomonosov Moscow State University, Moscow, Russia)

Abstract

This paper investigates the factors influencing the decision-making process in the choice between saving and investment instruments by the generation Z (158 students of the Faculty of Economics of Moscow State University), which are characterized by digital literacy and access to the financial products and services from an early age. Data was collected through a laboratory experiment using eye-tracking and heart rate monitor technologies, as well as surveys. Based on the collected data a series of econometric logit models was built, both binary (propensity to save or invest) and multinomial (choice of one of the financial instruments - deposit, shares, investment or savings money box). The study shows that the choice of financial instruments by generation Z is influenced by both primary factors (gender, education, financial preferences, advertising and financial content in the video, psycho-physiological characteristics- attention and engagement) and additional factors (financial literacy, information of financial choice, financial experience, additional courses and computational and financial competencies).

Suggested Citation

  • Kashirina, A., 2024. "Factors influencing the choice of savings and investment instruments by generation Z: The experimental study using neuroequipment," Journal of the New Economic Association, New Economic Association, vol. 63(2), pages 144-167.
    • Handle: RePEc:nea:journl:y:2024:i:63:p:144-167
    DOI: 10.31737/22212264_2024_2_144-167
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    More about this item

    Keywords

    generation Z; financial decision-making; advertisement; financial context; psycho-physiological indicators; savings; investments;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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