Navigating Finances in the Social Media Era: Age-Based Perspectives on Investment Decisions
DOI:
https://doi.org/10.46977/amt.2025.v06i01.001Keywords:
Age Cohorts, FOMO (Fear of Missing Out), Influencers, Misinformation, Social MediaAbstract
The widespread acceptance of social media has become a common part of everyday life amongst various age segments, with the population increasingly devoting significant lengths of time towards online platforms. The growing online world has made social media a basic part of daily activities that affects behaviour subconsciously and consciously. In particular, financial decision-making has undergone a paradigm shift where the role of conventional sources—familial guidance and professional financial advice—has been increasingly replaced by online platforms. This research paper seeks to examine the degree to which social media affects financial decision-making among two different age groups: young adults (ages 22–34) and late middle-aged adults (ages 45–64). The study is carried out within the Indian context and uses survey data for enabling a comparative analysis between these demographic segments. The research indicates that individuals in young adulthood are more vulnerable to online finance-induced decision-making based on increased exposure, increased use of web-based platforms, and behaviours like fear of missing out (FOMO). In contrast, late middle-aged adults show a higher level of caution in financial information obtained on the internet, showing a preference for traditional channels, such as professional financial advisors and personal networks. Furthermore, the research responds to the threats of misinformation, scams, and built-in biases potentially affecting financial decision-making processes negatively.
Downloads
References
Abu-Taleb, S. K., & Nilsson, F. (2021). Impact of social media on investment decision: A quantitative study which considers information online, online community behaviour, and firm image (Dissertation). Retrieved from: https://urn.kb.se/resolve?urn=urn:nbn:se:umu:diva-184477, Accessed on 18th January 2025.
Agarwal, S., Driscoll, J. C., Gabaix, X., & Laibson, D. (2007). The age of reason: Financial decisions over the lifecycle. https://doi.org/10.3386/w13191
Aisjah, S. (2024). Intention to use buy-now-pay-later payment system among university students: a combination of financial parenting, financial self-efficacy, and social media intensity. Cogent Social Sciences, 10(1). https://doi.org/10.1080/23311886.2024.2306705
Bihu, R. (2021). Questionnaire survey methodology in educational and social science studies. International Journal of Quantitative and Qualitative Research Methods, 9(3), 40-60. https://doi.org/10.31124/advance.14742819.v1
Cao, Y., Gong, F., & Zeng, T. (2020). Antecedents and consequences of using social media for personal finance. Financial Counseling and Planning, 31(1), 162-176. https://doi.org/10.1891/JFCP-18-00049
Carlin, B., Olafsson, A., & Pagel, M. (2019, May). Generational differences in managing personal finances. In AEA Papers and Proceedings (Vol. 109, pp. 54-59). 2014 Broadway, Suite 305, Nashville, TN 37203: American Economic Association. https://doi.org/10.1257/pandp.20191011
Cooley, D., & Parks-Yancy, R. (2019). The Effect of Social Media on Perceived Information Credibility and Decision Making. Journal of Internet Commerce, 18(3), 249–269. https://doi.org/10.1080/15332861.2019.1595362
Fong, J. H., Koh, B. S., Mitchell, O. S., & Rohwedder, S. (2021). Financial literacy and financial decision-making at older ages. Pacific-Basin Finance Journal, 65.https://doi.org/10.1016/j.pacfin.2020.101481
Hasselgren, B., Chrysoulas, C., Pitropakis, N., & Buchanan, W. J. (2022). Using social media & sentiment analysis to make investment decisions. Future Internet, 15(1), 5. https://doi.org/10.3390/fi15010005
Idris, H. (2024). The Effects of FOMO on Investment Behavior in the Stock Market. Golden Ratio of Data in Summary, 4(2), 879-887. https://doi.org/10.52970/grdis.v4i2.757
Kuerzinger, L., & Stangor, P. (2024). The relevance and influence of social media posts on investment decisions of young and social media-savvy individuals—An experimental approach based on Tweets. Journal of Behavioral and Experimental Finance, 44. https://doi.org/10.1016/j.jbef.2024.101005
Lusardi, A. (2019). Financial literacy and the need for financial education: evidence and implications. Swiss Journal of Economics and Statistics, 155(1), 1-8. https://doi.org/10.1186/s41937-019-0027-5
Maniy, V. R. V., Priyan, R. S., Selvan, T. S., Sadanand, P. A., Vinoth, S., & Gopalakrishnan, D. (2023). The impact of social media on investment decisions: An empirical analysis of user behavior on investment platforms. International Research Journal of Modernization in Engineering Technology and Science, 5(5), 3992-4000. Retrieved from: https://www.irjmets.com/uploadedfiles/paper/issue_5_may_2023/38929/final/fin_irjmets1684318290.pdf, Accessed on 18th January 2025.
OECD. (19th January 2021). Digital Delivery of Financial Education: Design and Practice. Organisation for Economic Co-operation and Development, Paris. https://doi.org/10.1787/d02549e7-en
Olajide, O., Pandey, S., & Pandey, I. (2024). Social media for investment advice and financial satisfaction: Does generation matter?. Journal of Risk and Financial Management, 17(9), 410. https://doi.org/10.3390/jrfm17090410
Pandey, L. K., Singh, R., Baker, H. K., & Laskar, H. R. (2025). Beyond the Screen: How YouTube Influencers Shape Equity Investment Decisions. Journal of Theoretical and Applied Electronic Commerce Research, 20(1), 15. https://doi.org/10.3390/jtaer20010015
Pereira, M. J. D. S., Cardoso, A., Canavarro, A., Figueiredo, J., & Garcia, J. E. (2023). Digital Influencers’ Attributes and Perceived Characterizations and Their Impact on Purchase Intentions. Sustainability, 15(17), 12750. https://doi.org/10.3390/su151712750
Pettersson, J., & Chapman, L. (2021). Social Media's Influence on Investment Decisions: A qualitative study based on an individual’s financial literacy. Retrieved from: https://urn.kb.se/resolve?urn=urn:nbn:se:umu:diva-184182, Accessed on 14th January 2025.
Pham, A. D., Nguyen, H. N., Le, T. T., Nguyen, H. K., Khuat, H. T., Phan, H. T., & Vu, H. T. (2024). Young consumers’ impulse buying tendency on social media: an empirical analysis in Vietnam in light of the LST theoretical perspective. Young Consumers. https://doi.org/10.1108/YC-07-2023-1785
Radhika, M., Reddy, P. M. K., & Prasad, V. S. (2023). A Perspective of Investment Relationship on Effects of Social Media Investment Outcomes. Global Business Review. https://doi.org/10.1177/09721509231187496
Subramanian, Y. R., & Prerana. M. (2021). Social-Media Influence on the Investment Decisions Among the Young Adults in India. Advancement in Management and Technology (AMT), 2(1), 17-26. https://doi.org/10.46977/apjmt.2021v02i01.003
Tandon, S., & Jain, R. (2021). Impact of social media on investment decisions among young adults. International Journal of Innovative Research in Technology, 9(1), 828-832. Retrieved from: https://ijirt.org/publishedpaper/IJIRT155449_PAPER.pdf, Accessed on 18th January 2025.
Published
How to Cite
Issue
Section
Copyright (c) 2025 Advancement in Management and Technology (AMT)

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.