Abstract
The paper examines how social media influences financial literacy and decision-making, focusing on the role of financial influencers ("Finfluencers"). As Germany faces increased personal responsibility for retirement planning, financial literacy has become crucial in enabling individuals to make informed choices in a complex financial landscape. The study analyzes the growing impact of social media on younger generations, who increasingly turn to platforms like YouTube and TikTok for financial guidance. It explores how financial influencers affect users' knowledge and actions by providing easily accessible content that simplifies complex financial topics. Empirical analysis through logistic regression shows that financial literacy levels, trust in social media, and employment type significantly affect the likelihood of using social media for financial information. Findings indicate that social media use is positively associated with higher financial literacy and decision-making confidence, with self-employed individuals more likely to engage in financial discussions online than students. Additionally, high trust in financial influencers correlates with increased social media usage for financial advice, though the potential risks of misinformation remain. The study concludes that while social media presents a valuable resource for financial education, particularly among younger users, strategic regulation is needed to mitigate misinformation. These insights highlight the potential of digital platforms to support financial literacy initiatives and the need for verified content to build informed, resilient financial behaviors.
Author Information
Alexander Zureck, FOM University of Applied Sciences, Germany
Susann Epping, FOM University of Applied Sciences, Germany
Maximilian Rongstock, FOM University of Applied Sciences, Germany
Paper Information
Conference: IICE2025
Stream: Adult
This paper is part of the IICE2025 Conference Proceedings (View)
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To cite this article:
Zureck A., Epping S., & Rongstock M. (2025) The Role of Social Media in Financial Literacy and Decision-Making: Insights From Behavioral Finance ISSN: 2189-1036 – The IAFOR International Conference on Education – Hawaii 2025 Official Conference Proceedings (pp. 161-186) https://doi.org/10.22492/issn.2189-1036.2025.15
To link to this article: https://doi.org/10.22492/issn.2189-1036.2025.15
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