Assessing the Relationship between Digital Financial Literacy and Financial Well‐being: Exploring the Moderating Effect of Financial Self-Efficacy

Type of the article: Research ArticleAbstractThe rapid expansion of digital financial services has reshaped how young adults manage money, presenting both new opportunities and behavioral risks. Although financial literacy is widely recognized as a key driver of financial well-being, empirical evidence regarding its direct impact remains mixed. This study examines the indirect pathways through which financial literacy influences financial well-being, focusing on the mediating roles of digital financial literacy, financial capability, financial autonomy, and impulsivity.A quantitative online survey was administered to 984 Indonesian respondents from Generation Z, and the data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results indicate that financial literacy significantly enhances digital financial literacy, which subsequently strengthens financial capability and decision-making processes. Among all mediators, financial capability consistently emerges as the most influential pathway, whereas impulsivity does not demonstrate a meaningful mediating effect. The structural model accounts for 57.3% of the variance in financial well-being, highlighting the central role of digital competence and capability development in shaping positive financial outcomes.The study contributes to the literature by integrating cognitive, behavioral, and psychological factors into a single explanatory framework of financial well-being among digitally active young adults. From a practical perspective, the findings underscore the need for financial education initiatives that combine foundational literacy with digital financial skills and capability-building elements. Policymakers and financial service providers in emerging economies are encouraged to strengthen accessible digital tools and targeted interventions for younger populations.AcknowledgmentsThe authors acknowledge the financial support from the Institute for Research and Community Service (LPPM), Universitas Andalas, through the Flagship Research Scheme (PUJK), Batch I, Contract No. 368/UN16.19/PT.01.03/PJUK/2024. Appreciation is also extended to the Faculty of Economics and Business, Universitas Andalas, for its institutional support and facilities that contributed to the completion of this research.

This study’s significance lies in its exploration of how Blockchain-enabled banking positively impacts customers’ financial well-being, offering valuable insights for financial institutions, policymakers, and academics, shedding light on the potential of Blockchain technology to enhance financial transparency and well-being in the banking sector. Convenience sampling was employed in our study, with a sample size of 273 banking customers, to investigate their perceptions and experiences related to blockchain technology in the banking sector. The study employs a Partial Least Squares Structural Equation Modeling (PLS-SEM) approach to analyze the data and examine the direct and indirect relationships among key variables: Blockchain features (efficiency, security, and regulatory compliance), perceived information transparency, and perceived financial well-being. The findings reveal that Blockchain features significantly contribute to customers’ perceived financial well-being. Additionally, the study highlights that perceived information transparency mediates the relationship between these features and customers’ perceived financial well-being. These results emphasize the importance of Blockchain technology in enhancing financial well-being through increased information transparency. The practical implications of this study are far-reaching. Financial institutions can leverage Blockchain technology to enhance customers’ financial transparency and well-being. Policymakers may consider regulatory frameworks that encourage the adoption of Blockchain in the banking sector. Academics can explore related factors such as customer trust and knowledge for further insights. Building on the current research, future studies should explore additional factors that may influence the relationship between Blockchain-enabled banking, information transparency, and customers’ financial well-being. Further investigations could consider factors such as customer knowledge, trust, and socio-economic characteristics.

Purpose The financial industry has undergone a significant transformation in recent years, with a shift towards digitally driven, user-focused solutions such as mobile banking (m-banking). This study aims to examine the impact of off-site customer-to-customer (C2C) interactions through financial socialization (FS) on mobile banking usage behaviour (MBUB) and financial well-being (FWB) among working adults using m-banking in India. Design/methodology/approach Employing the stimulus–organism–response (S-O-R) framework, this study investigates the mediating roles of financial knowledge (FK) and financial self-efficacy (FSE) in the relationship between C2C (FS) interactions and MBUB. We conducted a questionnaire-based survey using convenience sampling, which yielded 291 valid responses. We analysed the data using partial least squares structural equation modelling (PLS-SEM). Findings The findings revealed that C2C (FS) interactions positively influenced FK, FSE and MBUB. FK mediates the link between C2C (FS) interactions and FSE, whereas FSE mediates the relationship between FK and MBUB. MBUB mediates the relationship between FSE and FWB. This study extends the S-O-R framework to the m-banking context, highlighting the importance of C2C (FS) interactions in shaping financial behaviours and well-being. Practical implications This study provides implications for financial institutions and policymakers, emphasizing the importance of fostering peer-driven knowledge exchange, empowering local champions and developing targeted financial education programmes to promote m-banking adoption and enhance FWB in developing economies. Originality/value To the best of the authors’ knowledge, this study uniquely applies the S-O-R framework to explore C2C (FS) interactions in the MBUB, focusing on trusted social circle interactions that significantly influence working adults’ financial behaviour in India. This approach offers nuanced insights for various stakeholders in developing market contexts.

Financial well-being, a key determinant of life satisfaction, is increasingly threatened by economic volatility and complex financial systems. This study examines the interplay between psychological traits—financial self-control and financial self-efficacy—and their relationship with financial well-being, mediated by financial hardship. Theoretical frameworks include Scheier and Carver’s Self-Regulation Theory (In: Affect and cognition. Psychology Press, Philadelphia, pp 157–183, 2014), the Behavioral Life-Cycle Hypothesis (Shefrin and Thaler in Econ Inq 26:609–643. 10.1111/j.1465-7295.1988.tb01520.x, 1988; Thaler in Am Econ Rev 108:1265–1287, 2018), and Bandura’s Self-Efficacy Theory (in, Self-efficacy in changing societies, Cambridge University Press, Cambridge, 1997). Data were drawn from the Spanish Survey of Financial Literacy, a nationally representative sample of 8554 individuals. Spain’s unique macroeconomic context, influenced by the 2008 financial crisis and cultural factors such as family financial interdependence, provides a compelling backdrop for analysis. To test the hypotheses concerning the direct and indirect relationships between self-regulation factors and financial well-being, partial least squares structural equation modeling (PLS-SEM) was employed. The findings reveal a robust negative association between deficiencies in financial self-control (β = − 0.250, p < 0.001) and financial self-efficacy (β = − 0.265, p < 0.001) and a corresponding decline in financial well-being. Furthermore, financial hardship exhibits a robust negative correlation with financial well-being (β = − 0.410, p < 0.001) and partially mediates the relationships between self-regulation factors and financial outcomes. Specifically, financial hardship accounts for 41% of the total effect of financial self-control on financial well-being and 23% of the effect of financial self-efficacy. These findings underscore the pivotal role of psychological traits in shaping financial outcomes and highlight financial hardship as a critical mechanism for improving financial well-being. This study contributes to the extant literature by integrating financial hardship as a mediator and leveraging a unique dataset. It offers actionable insights for policymakers and financial institutions to design interventions promoting financial resilience. Specifically, the integration of automated savings programs and behavioral nudges has been demonstrated to enhance financial self-control, while financial education workshops have been shown to improve financial self-efficacy. Addressing financial hardship through policies such as debt relief and subsidized counseling can mitigate the adverse effects of financial stress. By elucidating the pathways linking self-regulation to financial well-being, this research deepens our understanding of the cognitive, emotional, and behavioral drivers of financial decision-making, with implications for theory and practice. Finally, these findings can inform targeted interventions addressing specific financial challenges, fostering greater financial resilience and stability.

Purpose - This study explores the factors shaping the relationship between the intention to use and the actual using behavior of Fintech services in the context of economic fluctuation. The main aim is to shed light on the intricacies of this relationship and contribute valuable insights to the field. Design/Methodology/Approach - We selected SmartPLS 4.0 software to process the collected data and applied the Partial Least Squares Structural Equation Modeling (PLS-SEM) to assess hypotheses and relationships between potential variables. Findings - We found that the intention to use Fintech positively affects Using Fintech Behavior, which subsequently influences Financial Well-Being (FWB). Additionally, we also found the moderation effect of Financial Literacy (FL) and Resistance to Change (RC) on these relationships through Using Fintech Behavior (UFB), Financial Socialization (FS), and Intention to use Fintech (IT) impact FWB. Surprisingly, UFB does not function as a mediator in relationships involving FL, Financial Stress (FSt), and FWB. Practical implications - The findings’ results indicate that the Fintech service market in Vietnam is not yet diverse, not completely separated from communication services, and the habit of using cash still exists. In addition, despite having financial socialization, financial literacy, and intention to use Fintech, users are still not ready for innovation and the adoption of financial technology. This study suggests that Fintech service developers need to strengthen incentive policies and develop services towards geographic segmentation. Originality - The study could be considered one of the first studies in Vietnam to discuss how to enhance financial well-being at the individual level, especially in evaluating how using Fintech could affect financial well-being. It concludes that Financial Literacy and Financial Socialization are two noticeable factors that might impact Financial Well-being, and Using Fintech is a key to thriving Financial Well-being. Keywords Financial literacy, financial socialization, financial stress, financial well-being.

The global issue of Financial Well-Being (FWB) among university students remains a contentious topic of discussion and growing concern. However, inconclusive findings necessitate a comprehensive understanding of potential antecedents to address this pressing issue. This study utilises psychological theories to examine the factors influencing FWB among university students, offering current insights and directions for future research. Data were collected from 299 Malaysian university students through an online survey and analysed using Partial Least Square-Structural Equation Modelling (PLS-SEM) via SmartPLS 4.0. The findings reveal that Digital Financial Literacy (DFL), financial confidence, and financial attitude significantly influence financial behaviour. In contrast, FWB is influenced by financial confidence and financial behaviour but not by DFL and financial attitude. Furthermore, financial behaviour successfully mediates the relationships between (i) DFL and FWB, (ii) financial confidence and FWB, and (iii) financial attitude and FWB. This study contributes to the growing literature on psychological theories and FWB, providing valuable insights for government, its agencies, regulators, and educational institutions. It highlights the need to enhance financial education curricula and awareness campaigns to foster positive financial habits and improve students’ FWB.

This study examines the factors influencing financial well-being and investigates the mediating role of digital financial inclusion among households with incomes below the national poverty line in Malaysia. The study used Partial Least Squares Structural Equation Modelling (PLS-SEM) and Importance-Performance Map Analysis (IPMA) to estimate the results. This study collected 1,171 responses and found that digital literacy, digital financial service infrastructure, and financial service providers were determining factors of digital financial inclusion. Financial service providers and digital financial inclusion showed a significant relationship with financial well-being. Mediation analysis showed that digital literacy, digital financial service infrastructure, and financial service providers indirectly affected financial well-being through digital financial inclusion. The results of the IPMA showed that financial service providers and digital financial inclusion were the most important factors in achieving financial well-being. Furthermore, financial service providers were the key factor of digital financial inclusion in high-poverty states, while digital literacy was a key factor in moderate- and low-poverty states. The study offers insights for policymakers working towards an inclusive society and provides financial service providers with information to design services that meet the needs of poor households. This study also offers important implications for other developing countries in Southeast Asia that share similar socio-economic and digital challenges.

This paper aims to analyse factors affecting financial stress among the Bottom 40 Percent (B40) group of Malaysian households, reflecting overall financial well-being. Data were collected through questionnaires from 1008 respondents across five major regions in Malaysia. The data were analysed using Exploratory Factor Analysis (EFA) and Partial Least Squares-Structural Equation Modelling (PLS-SEM). This study provides evidence that financial behaviour, financial vulnerability (debt and income), and locus of control (luck and self-confidence) significantly affect financial stress among B40 households. The results show a significantly positive relationship between financial stress with financial vulnerability (debt and income) and locus of control (self-confidence). On the contrary, financial behaviour and locus of control (luck) show a significant negative relationship with financial stress. The result also indicates that financial stress affects financial well-being. Overall, the findings indicate that policy-makers should invent more effective and substantial stimulus packages or other measures to reduce the financial burden on B40 households. The findings could eventually provide insights for future research to delve into the social impact of financial stress. This study also has established a valid and reliable instrument to measure financial stress involving B40 households in Malaysia that eventually reflects the financial well-being of this group of people.

This study aims to examine the determinants of financial inclusion and investigate its influence on the financial well-being of marginalized street vendors in Chitwan, utilizing social capital theory as a theoretical framework. The research is based on quantitative analysis, with data collected from 205 respondents using structured questionnaires distributed through offline and online channels. Convenience sampling was employed to gather data. The study used descriptive and inferential statistical methods and analyzed the data using Partial Least Squares Structural Equation Modeling (PLS-SEM). Among the five dimensions of financial inclusion determinants, financial literacy, availability, usage, and affordability significantly influenced financial inclusion, whereas accessibility did not have a significant impact. The findings further revealed that financial inclusion significantly impacts the financial well-being of marginalized street vendors in Chitwan. The study is limited to marginalized street vendors in Chitwan and may not be generalizable to other contexts or populations. Future research should explore the interrelationships between individual financial inclusion and financial well-being in broader or comparative settings for a comprehensive understanding of this relationship. The study provides valuable insights for policymakers, financial institutions, and development organizations aiming to enhance financial inclusion and promote financial well-being among marginalized communities. It highlights the need for targeted interventions in financial literacy, service availability, usage, and affordability.

Cultural values are foundational elements that shape societal structures, influencing traditions, language, beliefs, norms, arts, literature, and laws. These values play a critical role in fostering social inclusion, cohesion, and unity among individuals and groups. The development of tolerance and solidarity contributes to social harmony, economic progress, and overall well- being. For caregivers of individuals with autism, effective financial management is essential to maintaining their personal and familial well-being. Given this context, cultural perspectives are vital for understanding and predicting financial behaviour. However, there remains a notable gap in autism-related research, particularly in developing countries with low- to middle-income and non-Western cultural settings. This study aims to examine the influence of societal cultural dimensions, based on Hofstede’s framework, on the financial behaviour and well-being of autism caregivers. A cross- sectional design was employed, using purposive sampling to survey 129 autism caregivers in Selangor, Malaysia. The research model was analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM) with bootstrapping. The results indicate that the cultural dimensions of Individualism–Collectivism and Uncertainty Avoidance significantly influence financial behaviour. Additionally, financial behaviour was found to have a significant effect on financial well-being (p = 0.000). These findings underscore the growing importance of cross-cultural perspectives in financial research and highlight the need for culturally informed strategies to support autism caregivers.

The main purpose of the study is to evaluate the direct influence of financial literacy application and money management behaviour on financial wellbeing as well as whether money management behaviour mediates the influence of financial literacy application on financial wellbeing among young adults. A questionnaire survey method was utilized to gather information from young working adults. The partial least squares structural equation modelling (PLS-SEM) was the data analytic technique employed to analyze the data. The result revealed that financial literacy application and money management behaviour have positive and significant direct influence on the financial wellbeing of young adults. Also, the study found out that money management behaviour partially mediates the influence of financial literacy application on financial wellbeing. The study bridges the gap between theory and practice to offer an enriched empirical basis for young adults to continuously apply financial knowledge and possess sound money management attitude to attain financial wellbeing. By proposing a framework, this study contributes to existing knowledge and highlights the importance of developing good money management behaviour to support financial literacy application role in dealing with financial wellbeing problems. Thus, the study will be useful for young adults, parents, and policymakers in designing financial wellbeing programmes for better quality of financial life and value creation among the young working adults.

The fundamental human resource that influences financial well-being is financial literacy. People are more likely to save and invest if they understand the time value of money, credit, insurance, and investments. Having a sound financial understanding lessens stress and increases financial well-being. This study used a structured survey questionnaire and back-translated it into Bangla to ease readability for the respondents. Four hundred thirty-five invitations were sent mainly to the Dhaka city dwellers’ and only 253 complete responses were retained for analysis. Partial least squares structural equation modeling (PLS-SEM) is used to assess the intercorrelations and validate the measurement model among the constructs (financial attitude, behavior, knowledge, self-efficacy, technological self-efficacy, and financial well-being) using SmartPLS version 4. The result found a full mediation effect among financial behavior, financial self-efficacy, and financial well-being. Partial mediation effects are found among financial attitudes toward financial self-efficacy, technological self-efficacy, and financial well-being.

PurposePrevious research suggests the crucial role of parents in developing social behaviors of their children. However, less evidence is available on the role of parents in shaping responsible financial management behavior among children for their later life. This study bridges this gap by investigating the role of financial parenting in improving well-being among young Saudi people. Particularly, this study examines the role of financial parenting, childhood financial socialization and childhood financial experiences in developing responsible financial self-efficacy and financial coping behaviors to determine financial well-being among young adults in Saudi Arabia.Design/methodology/approachThis study uses a two-step mixed-method approach comprising analyses of symmetric (net effects) and asymmetric (combinatory effects) modelling to test the proposed model. A symmetrical analysis examines the role of financial parenting factors that are sufficient for improving financial well-being among Saudis. An asymmetrical analysis is used to explore that a set of combinations of financial parenting conditions lead to high performance of financial well-being. Data have been collected from 350 students enrolled in undergraduate and postgraduate programs in Saudi Arabia.FindingsAccording to asymmetric modeling (i.e. fsQCA) analysis, parents and practitioners can combine financial parenting, childhood financial socialization and childhood financial experiences along with financial self-efficacy and financial coping behaviors in a way that satisfied the conditions (i.e. causal antecedent conditions) leading to high financial well-being. Importantly, the condition of high financial well-being is not mirror opposite of causal antecedent conditions of low financial well-being.Research limitations/implicationsThis study contributes to the current knowledge by applying both symmetrical and asymmetrical modelling to indicate a high level of financial well-being. Besides, there is sparse empirical evidence available in the context of Saudi Arabia on how financial parenting, socialization and financial experiences in childhood improve children's financial well-being in their later life.Practical implicationsAccording to asymmetric modeling (i.e. fsQCA) analysis, parents and practitioners can combine financial parenting, childhood financial socialization and childhood financial experiences along with financial self-efficacy and financial coping behaviors in a way that satisfied the conditions (i.e. causal antecedent conditions) leading to high financial well-being. Importantly, the condition of high financial well-being is not mirror opposite of causal antecedent conditions of low financial well-being. The parents and practitioners must be cautious to regulate the condition in which the combination of the antecedents is not in line with the causal recipes of financial well-being negation.Originality/valueThis study deepens the current knowledge by employing both symmetrical and asymmetrical analysis for testing structural and configurational models indicating the high performance of financial well-being . The study proposes and tests an integrated model to bring new contributions to prior literature. This study also attempts to propose valuable research directions for future researchers interested in the topic.

The topic of financial wellbeing is a current concern within the realm of personal and household finance. This study aims to examine the influence of cognitive factors, specifically financial literacy, mental budgeting, and self-control, on subjective financial wellbeing. While there exist multiple determinants of financial wellbeing, this research focuses on these particular cognitive factors. The present study aims to examine the mediating role of investment decision-making behavior in the association between cognitive factors and financial well-being. The study employed Partial Least Squares Structural Equation Modeling (PLS-SEM) to analyze the data collected from a sample of 449 Chinese university students, with the aim of assessing the empirical associations. The results indicate that financial literacy, mental budgeting, and self-control exert a favorable and noteworthy influence on an individual's financial well-being. The results indicate that individuals with a greater degree of financial literacy are more prone to achieving superior financial well-being. Moreover, individuals who practice mental budgeting, a technique that entails mentally classifying and monitoring their expenditures, demonstrate elevated levels of financial well-being. Likewise, the exercise of self-regulation is identified as a pivotal element that impacts an individual's financial wellbeing. The findings indicate that there is evidence to support the mediator, investment decision-making behavior. This mediator partially mediates the association between the independent variables, namely financial literacy, mental budgeting, and self-control, and financial well-being. The results suggest that individuals with elevated levels of financial literacy, proficient mental budgeting skills, and self-regulatory abilities are inclined towards demonstrating favorable investment decision-making conduct. Consequently, this contributes to their general financial welfare. In general, the study's theoretical implications augment the current knowledge repository, while its practical implications provide feasible perspectives for policymakers, financial institutions, and individuals to foster financial wellness and enhance financial results.

The development of stock markets is pivotal for economic growth, particularly through the mobilization of idle resources into productive investments. Despite recent reforms to enhance Uzbekistan’s capital market, public engagement remains limited. This study examines the behavioral determinants of stock market investment intention and participation among university students, employing the Theory of Planned Behavior (TPB) and Partial Least Squares Structural Equation Modeling (PLS-SEM). The model investigates the influence of digital literacy, financial literacy, social interaction, herding behavior, overconfidence bias, risk tolerance, and financial well-being on investment intention and behavior. A survey of 369 university students was conducted to assess the proposed relationships. The results reveal that risk tolerance, overconfidence bias, and herding behavior significantly and positively affect investment intention, while digital literacy demonstrates a notable negative effect, suggesting caution in assuming technology readiness automatically translates to investment readiness. Investment intention, in turn, strongly predicts actual participation and mediates several of these effects. Conversely, financial literacy, financial well-being, and social interaction showed no significant direct or mediating influence. Additionally, differences according to gender and academic background were observed in how intention translates into behavior. The findings underscore the need for integrated financial and behavioral education to enhance market participation and contribute to policy discourse on youth financial engagement in emerging economies.