The roles of peers and social media in building financial literacy among the millennial generation: A case of indonesian economics and business students

Students of the millennial generation have several characteristics, including being wasteful in their management of money and being highly dependent on information and communication technology. These phenomena mean financial literacy is important for them, in order that they become capable, wise, and efficient individuals who are future-oriented in managing their personal finances. This study aims to create a model for developing the financial management behavior of students. It covers five variables, namely financial behavior, financial attitude, financial knowledge, social media exposure, and peer influence. By using purposive sampling and a five-point Likert scale questionnaire, this study collected data from 327 students spread across several universities in Indonesia. The results of the descriptive analysis show that the students’ financial management behavior (FMB), financial attitude, and financial knowledge are classified as good. Structural equation modeling (SEM) analysis using the single-composite indicator technique shows that 58% of FMB is influenced by financial exposure from social media, financial attitude, and peer influence. Social media exposure and peer influence take on a strategic nature. Financial knowledge, financial attitude, and financial behavior are internal variables related to financial literacy. Further research would need to identify the external variables that have a potential influence on the internal variables of financial literacy.