The Influence of Social Media on Individual Financial Decision Making: A Literature Review Based on Social Learning Theory
Keywords:
Social Media, Social Learning Theory, Financial Influencers, Herd Behavior, Financial LiteracyAbstract
Digital transformation has fundamentally changed how individuals access information and make financial decisions, where social media has now become a primary source influencing investment behavior through social learning mechanisms. This study aims to analyze the influence of observing financial content on social media on personal financial decisions, evaluate the role of financial influencers as behavioral models in shaping followers' financial choices, and identify how imitation processes in social media communities trigger speculative behavior or herd behavior. This literature review employs a library research approach by analyzing academic publications from 2020-2025 through Albert Bandura's Social Learning Theory framework. The research findings reveal that the observation process on social media shapes investment perceptions through attentional and retention process mechanisms, financial influencers serve as effective behavioral models fulfilling characteristics of credibility and attractiveness, and collective imitation processes in online communities trigger herd behavior that can generate extreme market volatility. Financial literacy has proven to be an important moderator that reduces the risk of suboptimal social learning. This research provides theoretical contributions in understanding the dynamics of financial decision-making in the digital era and practical implications for developing financial education that integrates critical awareness of social media influence
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