Digital Financial Literacy and its Impact on the Financial Behaviour of Millennials: An Empirical Investigation

Abstract

Click Here:Access Full Text

Todays financial services sector has been significantly affected by a digital transformation driven by technology. It is now feasible to manage money and make financial plans using a smart phone, a computer, plastic money, and the cyberspace, thanks to the growing digitisation of financial products and services. The COVID pandemic has inadvertently encouraged the use of DFS. More customers have been drawn to DFS due to its easy usage, quickness, dependability, safety, and low cost. However, to use DFS successfully, one must possess digital financial literacy (DFL). DFL is crucial with regard to how digital financial technology affects saving and spending habits. The millennial generation is the one that uses digital technology most frequently in India, and a sizeable portion of them are influenced by social media when making financial decisions. This research examines the relationship between DFL, and saving and spending habits among millennials, by using a structured questionnaire framed with the help of prior studies in the area. The study focused on four dimensions of DFL: knowledge, experience, awareness, and skill. A simple correlation and regression were used to study the relationship among the variables. The study found that there exists a positive and significant relationship between financial behaviour and DFL among the millennial generation. Spending habit also positively influences saving habit.

Keywords: Digital Financial Literacy, Digital Financial Service, Saving Behaviour, Spending Behaviour, Millennials

View PDF