Social Media for Investment Advice and Financial Satisfaction: Does Generation Matter?

Abstract

This study explores the relationship between social media usage for investment advice and financial satisfaction across different generations. Ten ordered logit models were estimated using Stata to explore this relationship. Ordered logit analyses using data from the 2021 National Financial Capability Study State-by-State and Investor survey reveal that Generation X and millennials are less financially satisfied than baby boomers. While general social media use shows no statistically significant association, platform-specific analysis finds that Instagram and TikTok users report higher financial satisfaction, whereas YouTube users report lower satisfaction. Notably, millennials who use social media for investment advice are more financially satisfied than their peers. Detailed analyses reveal that Instagram, TikTok, and Twitter positively influence financial satisfaction across Gen Z, millennials, and Gen X, with more platform-specific associations observed for Facebook, LinkedIn, and Reddit among millennials and Gen X, respectively. These findings provide valuable insights for policymakers, financial professionals, and researchers, highlighting the need for targeted strategies to enhance financial well-being through social media.