Financial Literacy and Digital Financial Behavior among Generation Z: An Empirical Investigation of Social Media Influence, Investment Patterns, and Credit Management.

Financial literacy, Generation Z, social media, investment behaviour, credit awareness.

Generation Z are the first digitally native generation, radically changing the way financial education is accessed and used. It is imperative that the distinct interaction with digital domains and financial decision-making among this generation be thoroughly explored. This research analyses the interaction between social media-based financial learning, levels of financial literacy, and ensuing financial habits among Generation Z, specifically with reference to investment trends, credit information, and prudent use of money. A cross-sectional survey design was used with 100 Generation Z members aged 18-28 years. Statistical tests used were Chi-Square tests, Spearman correlation, Mann-Whitney U test, independent samples t-test, and Kruskal-Wallis test to analyse relationships between variables. The research indicated strong positive correlations between financial literacy and awareness of credit scores higher levels of financial literacy significantly correlated with investment behaviour. Social media use to acquire financial knowledge had only marginal correlation with investment experience, with trend-based measures to indicate significance. To the surprise of many, formal financial education had no significant effect on financial literacy levels, and no significant correlation with ethical usage of credit cards. The evidence indicates that Generation Z's development of financial literacy works through non-conventional channels, with social media and independent learning being pivotal. The gap between formal education and real-world financial literacy points to the necessity for new educational methods suited to digital natives.