The Effect of FOMO and Financial Literacy on Doom Spending Among University Students
Purpose: The rapid growth of e-commerce and social media has increased psychological and financial pressures on university students, contributing to doom spending impulsive purchasing driven by emotional distress rather than rational need. This study examined the effects of Fear of Missing Out (FOMO) and financial literacy on doom spending among university students in Solo Raya, Indonesia, who actively use ecommerce platforms.
Research Methodology: A quantitative survey design was used. Data were collected from 148 university students in Solo Raya, Central Java, Indonesia, selected by purposive sampling. The instrument comprised a 21-item Likert-scale questionnaire measuring FOMO, financial literacy, and doom spending, validated through item-total correlation and reliability testing (Cronbach's alpha = 0.786). Classical assumption tests confirmed model eligibility. Multiple Linear Regression (MLR) analysis was performed using SPSS.
Results: FOMO exerts a positive and statistically significant partial effect on doom spending (B = 0.852, B = 0.883, t = 24.311, p = .000). Financial literacy exerts a negative and statistically significant partial effect (B = -0.062, B = -0.078, t = -2.144, p = .034). The simultaneous F-test confirms joint significance (F = 414.403, p = .000), explaining 85.1% of doom spending variance (R2 = 0.851).
Conclusions: FOMO is the dominant driver of doom spending while financial literacy functions as a significant protective factor.
Limitations: The study is limited to Solo Raya university students; cross-sectional design restricts causal inference; only two predictors were examined.
Contributions: This study provides quantitative evidence of the FOMO, financial literacy, and doom spending relationship among Indonesian e-commerce students.