Digital financial literacy and financial well-being - evidence from India

Purpose - This study aims to examine the influence of digital financial literacy (DFL) on the financial wellbeing (FWB) of students in Andhra Pradesh, specifically exploring the factors of impulsivity and self-control. Both DFL and FWB are treated as multi-dimensional constructs in the study. The research delves into the impact of DFL dimensions, viz. digital financial knowledge, digital financial experience and digital financial skills, on both impulsivity and self-control. Subsequently, the study assesses the effects of impulsivity and self-control on financial well-being. Design/methodology/approach - To gather data, a questionnaire-based survey method was employed, reaching 475 university students through purposive sampling. The study utilizes confirmatory factor analysis for scale validation and structural equation modeling for hypothesis testing. Findings - The results reveal a significantly negative influence of digital financial knowledge (DFK), digital financial experience (DFE) and digital financial skills (DFS) on impulsivity, while demonstrating a significantly positive impact on self-control. Additionally, the study finds that impulsivity negatively affects financial wellbeing, whereas self-control has a positive impact. Focusing on higher education institutions in Andhra Pradesh, the research highlights students' limited concern for long-term financial planning. Originality/value - This study underscores the relevance of understanding the crucial role of digital financial literacy in enhancing their financial well-being. The implications of these research findings are substantial and can be utilized to shape educational programs for students in higher education institutions. Such programs can guide institutions in imparting knowledge and skills related to personal finance management, particularly in the context of the increasing digitalization of financial transactions.