Social Influences, Financial Literacy and, Financial Management Behavior among Generation X and Millennials

Abstract

This study is to examine the effect of social influences and financial literacy on financial management behavior among generation X and millennials. This is because the level of financial literacy is the most important factor to guide individual spending behavior. According to a study of 100 participants in Malaysia, social factors (parents, peers, and the media) and financial literacy influence the money management behaviors of Malaysia's Generation X and millennials. However, there are disparities exist in social influences and financial management behavior between Generation X and millennials. The findings of the study bolster the concept that financial education and social effects have a critical role in altering individuals’ financial management behavior. Future researchers should pay closer attention to time allocations and, also compare across generations (generation Z) to increase the dependability of data acquired from the target group.