Excessive use of social networking sites and financial well-being among working millennials: a parallel-serial mediation model

Abstract

PurposeThis study aimed to investigate the mediating role of financial attitude and perceived behavioral control with financial behavior in the association between excessive use of social networking sites (SNSs) and financial well-being among working millennials.Design/methodology/approachA crossed-sectional survey was used to obtain data through a self-administered questionnaire. A total of 485 working millennials (M age = 32.28, years, SD age = 4.75) in Malaysia participated in the study based on a purposive sampling technique. Covariance-based structural equation modeling (CB-SEM) was used to evaluate the measurement model and the proposed serial mediation model.FindingsThe findings of this study revealed that excessive use of SNS is negatively associated with financial well-being. Also, the findings suggested that financial attitude and perceived behavioral with financial behavior serially mediated the negative relationship between excessive use of SNS and financial well-being, respectively.Practical implicationsSeveral implications were suggested and discussed to prevent the negative impact of excessive SNS use on financial well-being among young working adults. Policymakers and financial service providers (e.g. banks) can draw from the findings by constantly framing and delivering their messages to increase the young working adults' awareness of pitfalls of excessive use of innovative technologies on their financial attitudes and self-control over their behaviors and financial well-being.Originality/valueThis study entails some new insights on examining the impact of excessive use of SNS on working millennials' financial well-being as well as the underlying mechanisms behind this phenomenon.

Young adults' financial well-being: current insights and future directions

“…, 2022; She et al. , 2021b, 2022b). Moreover, financial difficulties faced by Generation Y are likely to be mirrored in Generation Z, since evidence broadly indicates that people view parents as their financial role models (Lanz et al.…”

“…Noteworthily, millennials are prone to financial struggles such as low net worth and high debt-to-income ratio (Mountain et al, 2020). Part of this is attributed to their susceptibility to social pressures (Cherney et al, 2020;Mahendru et al, 2022) and compulsive buying behavior (Aboujaoude, 2014;Eren et al, 2012;She et al, 2021a), which may be caused by excessive use of social networking sites (Pahlevan She et al, 2021bShe et al, , 2022b. Moreover, financial difficulties faced by Generation Y are likely to be mirrored in Generation Z, since evidence broadly indicates that people view parents as their financial role models (Lanz et al, 2020).…”

Using the Theory of Planned Behaviour to Explore Predictors of Financial Behaviour Among Working Adults in Malaysia

“…In this sense, Ajzen et al (2011) proposed that an individual’s level of knowledge can be a prerequisite for effective behaviour, being independent of the TPB’s existing predictors and impacting motivational factors. Similarly, personal finance studies have supported that one’s knowledge of finances influences motivational factors and financial behaviour (Ajzen et al, 2011; Guy et al, 2014; Serido et al, 2013; She, Rasiah, et al, 2022). Although TBP has been extended and tested in various settings (Agu, 2021; Agu et al, 2022; Bongini & Cucinelli, 2019).…”

“…Literature reveals the necessity of enhancing financial knowledge and responsible financial behaviour as they are essential for working adults’ retirement preparedness. For example, people with a higher level of financial knowledge and sound financial behaviour are accountable for credit card use, prompt bill payments, spending within budget, handling money matters, and credit cardholders’ decision-making (Hamid & Loke, 2021; Loke, 2015; She, Rasiah, et al, 2022). However, the fact remains that most of working adults or pre-retirees lack basic knowledge of finance and do not manage their finances properly, which may lead to low living standards in the post-retirement period (Butt et al, 2018; Lusardi & Mitchell, 2017).…”

Future time perspective and consumer well-being of millennials: implications for consumer resilience

“…This generation, who constitute a quarter of the world's population and act as the main global workforce (Rey-Ares et al ., 2021), has been struggling with heavy student debts (Brüggen et al ., 2017; Lusardi, 2019), high rates of housing debt (Emmons and Noeth, 2014) and an unstable labour market (PwC, 2022). Further, their insufficient financial knowledge (Goyal and Kumar, 2021; Lusardi, 2019) and/or irresponsible financial behaviour (Szendrey and Fiala, 2018; She et al ., 2023; Zainudin et al ., 2019) caused by the lack of future time perspective have cost them the ability to consume or accumulate savings for their later retirement (Brüggen et al ., 2017). Not surprisingly, these factors have degraded their current financial well-being (Lusardi, 2019), compromised their financial security (Tomar et al ., 2021) and led to subsequent long-term pressure on the public and private financial systems.…”