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The Impact of Social Media on Saving Behaviour of Young Adults in New Zealand

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Thesis(4.98 MB)

Date

2025

Authors

Bun, Pitou

Supervisor

Gilbert, Aaron

Item type

Thesis

Degree name

Master of Business

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Publisher

Auckland University of Technology

Abstract

Saving behaviour is recognised as a key aspect of financial well-being, closely linked to financial literacy and the ability to make informed financial decisions. However, the savings of young adults in New Zealand is poor with over half of 18-24 having less than $1,000 in savings (ASB, 2022). While the impact of social media’s influence on impulsive spending, a behaviour that reduces savings, has been well established, social media has potential as an educational tool that can improve financial knowledge and decision-making around savings. This study explores the role of social media in influencing the saving behaviour of young adults in New Zealand. This study employs a quantitative survey design to collect data from New Zealanders aged 18-29. The survey asks questions on demographics, saving behaviours, and social media engagement. The analysis controls for factors that have been established as influencing financial decision-making such as financial capability, mental capacity, motivation, and opportunity, as framed by Lučić et al.’s (2022) personal financial management system. Regression analysis revealed that engagement with financial content on platforms like TikTok, Instagram, and Facebook were positively associated with saving behaviour, particularly when users frequently shared, followed, or commented on financial materials. In contrast, platforms like YouTube and Reddit showed weaker or no associations. The results also show that platform features play a critical role in determining the impact of social media in shaping financial habits. In particular, a key finding is that passive activities like watching videos on Instagram and TikTok are associated with improvements in savings behaviour that is similar to more active activities. This appears to be associated with the use of algorithms to provide constant reinforcement. The findings offer insights into social media’s influence on financial decision-making, contributing to the understanding of digital financial socialisation. The findings also have practical implications for informing interventions to promote healthier financial habits that contribute to long-term financial security and well-being among young adults, thereby enhancing their financial stability in the digital age.

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http://hdl.handle.net/10292/19957

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Masters Theses