Author(s) :

Tanya Dandapani.

Volume/Issue :

Abstract :

Social media now plays a significant role in shaping how adolescents and young adults discover and buy products, often encouraging impulse purchases. At the same time, schools across the United States are placing greater emphasis on financial literacy to help students make responsible spending decisions. This study investigates the relationship between financial literacy, financial confidence, and impulse buying behavior among adolescents and emerging adults, with a specific focus on the influence of social media advertising. This research uses an anonymous online survey completed by 76 participants aged 13 to 24. The survey measured objective financial literacy, self-reported financial confidence, exposure to social media advertisements, and self-reported impulse-buying behavior using both self-reported questions and hypothetical purchasing scenarios. The results show that although financial literacy and financial confidence increase with age, impulse buying and purchases influenced by social media also increase, especially among participants aged 18–24. Higher financial literacy did not lead to lower impulse buying, and financial confidence did not consistently predict responsible spending behavior. These findings suggest that financial knowledge alone may not be enough to reduce impulsive spending in digital environments.