Millennials' adoption of personal financial management (PFM) technology and financial behavior

This paper uses the Technology Acceptance Model to analyze the factors associated with personal financial management technology (PFM) adoption among millennials and extends the analysis to understand how PFM adoption is associated with financial behavior. Data from the 2018 National Financial Capability Study was used for this analysis. Evidence suggests that millennials engaging in digital side hustles, such as Uber or Lyft, are significantly more likely to adopt PFM technology. Individuals experiencing higher financial pressure or exhibiting higher financial confidence are more likely to adopt PFM technology. After extending the analysis to include financial behavior, heavy adopters of PFM technology are more likely to own an emergency fund, payoff their credit card in full every month, own a retirement account, own an investment account, save for retirement, and own a will. Surprisingly, heavy adopters of PFM are also more likely to spend more than they earn and experience overdrafts.