The Effect of Using Social Media on Financial Literacy: A Focus on the Kingdom of Bahrain

Financial literacy has proven to be a vital prerequisite in advancing personal financial performance and outcomes. However, the rate of financial literacy remains low in Bahrain. The purpose of this study was to examine whether social media use can significantly affect financial literacy. The research method adopted in this study is quantitative using a survey of closed-end questions. The data were collected from 400 participants. The population in this study comprised students from various universities in Bahrain. The data were analysed using ANOVA and linear regression analyses. Results showed that social media use significantly and positively affects financial literacy, self-efficacy towards personal financial goals, and goal-setting intentions towards personal financial goals. The results further established that self-efficacy and goal-setting intention had significant and positive effects on financial literacy. Encouraging the use of social media towards financial education is considered an opportunity to advance financial literacy, self-efficacy, and goal-setting intentions towards personal financial goals in Bahrain. This study is one of a kind which demystifies social media as a positive factor influencing financial literacy among users in Bahrain.