Abstract:
Millennials make up the most prominent demographic cohort in many nations
and are in the prime of their working age. Thus, studying Millennials’ financial
behaviour and identifying its drivers have become increasingly important in the
current context. This study attempts to examine how social media influences the
financial behaviour of Millennials with the mediating effect of financial literacy.
A cross-sectional survey was conducted among individuals who earned an
income and were born between the years 1981 to 1996, and the convenience
sampling technique was used to collect data through a self-administered
structured questionnaire. The online survey collected 352 responses, which were
analyzed using Structural Equation Modelling (SEM). The results indicated that
social media and financial literacy positively influence the financial behaviour of
Millennials. Ascertaining the main objective of the study, the findings revealed
that financial literacy partially mediates the influence of social media on financial
behaviour, confirming both direct and indirect influences. However, the
mediating effect is reported to be greater than the direct effect. This study
contributes to the existing literature by examining the influence of the social
environment on financial behaviour. Notably, it broadens the scope of
conventional social environment research by incorporating an examination of the
utilization of social media platforms. Concerning the managerial implications, it
is vital for those in charge of formulating policies to recognize the relevance of
social media platforms in interactively disseminating financial knowledge and,
thereby, influencing the financial behaviour of Millennials. The study also argues
that financial knowledge should be provided to all individuals irrespective of their
discipline to develop healthy financial behaviour among youth.
