An Exploratory Study of the Effects of Social Media Use on Financial Anxiety

Abstract

Researchers have documented the growing reliance on social media by consumers. Simultaneously, the number and sophistication of consumers’ financial choices in the marketplace have significantly grown. In this paper, the relationship between social media use and consumers’ level of financial anxiety is examined utilizing a national sample of American consumers. The findings reveal a strong correlation between heavy social media use and financial anxiety. Financial anxiety is found to be further affected by gender, one's level of financial literacy, and the amount of time spent per day on social media. The correlational findings, obtained through cross-sectional data, are significant as this is the first study to explore how social media usage and financial anxiety are intertwined.