Millennial Generation Towards Financial Freedom: Frugal Living Factors and Digital Financial Literacy

Abstract

Economic uncertainty in Indonesia has encouraged individuals to adopt more meaningful lifestyles and develop
prudent financial mindsets. Achieving financial freedom has become a major goal for many people, particularly
among the millennial generation. Factors such as a frugal living lifestyle and digital financial literacy are
considered important in supporting the achievement of financial freedom. However, the rapid expansion of digital
economic services has also increased the tendency of millennials toward consumptive and impulsive financial
behavior. This study aims to examine the influence of frugal living and digital financial literacy on financial
freedom among millennials in Banten Province. This research employs a quantitative approach using the Slovin
formula to determine the sample size. The population consists of millennials residing in Banten Province, with a
total sample of 400 respondents. The findings indicate that frugal living does not have a significant effect on
millennials’ financial freedom. In contrast, digital financial literacy has a significant positive effect on financial
freedom. These findings highlight the importance of strengthening digital financial literacy to support effective
financial management and the achievement of long-term financial goals through the optimal use of digital
financial technologies