This study develops a Financial Literacy–Driven Decision Model (FLDDM) to explain how financial literacy influences millennial financial behavior, particularly in relation to investment fraud vulnerability and status-oriented consumption patterns (commonly associated with social “flexing” behavior). The increasing complexity of digital financial ecosystems, coupled with aggressive social media marketing and peer-driven consumption norms, has heightened the exposure of millennials to fraudulent investment schemes and irrational financial decisions. Building upon foundational theories in behavioral finance and financial literacy research, this study synthesizes prior empirical findings to construct a conceptual decision-making framework.

The model integrates financial knowledge, financial attitude, behavioral control, and socio-digital influences to explain financial decision outcomes. Literature evidence suggests that individuals with higher financial literacy demonstrate improved financial decision-making and reduced susceptibility to financial fraud (Chen & Volpe, 1998; Lusardi & Mitchell, 2007). However, financial literacy alone is insufficient without financial capability and behavioral reinforcement mechanisms (Friedline & West, 2016). The proposed model highlights the mediating role of social influence and psychological motives in shaping millennial financial decisions, particularly under conditions of digital exposure and investment hype cycles.

Findings from literature synthesis indicate that low financial literacy combined with social comparison pressure significantly increases vulnerability to fraudulent investments and status-driven consumption behavior. The study contributes to theoretical advancement by integrating behavioral finance, digital consumer psychology, and financial capability theory into a unified decision model. Practical implications suggest the need for integrated financial education programs that extend beyond knowledge acquisition to behavioral and psychological conditioning.