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Digital Financial Literacy and Its Impact on Financial Skills and Financial Goals in Indonesia’s Digital Payment Ecosystem

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  • Lilis Ardini
  • Mochammad Fahlevi
  • Mochamad Dandi
  • Olivia Putri Dahlan
  • Sahara Putri Dahlan

Abstract

This study investigates the intricate connection between digital financial literacy (DFL) components and financial skills (FSK) in relation to financial goals (FG) while considering the moderating role of financial experience (FE) and financial awareness (FA) within the rapidly developing digital payment environment in Indonesia. Utilizing a quantitative approach and structural equation model (SEM) analysis of survey data from 633 participants. The results indicated that all aspects of DFL have a substantial impact on FSK and FG. FSKs are crucial in enhancing FG, as they play a key role in mediating the effect of all DFL components on FG. Although FE strengthens the moderating role, it is not significant. Conversely, FA weakens the relationship, but this is not statistically significant. The research presents undeniable evidence that the fundamental aspects of DFL comprising knowledge of digital financial services (KDFS), awareness of digital finance risk (ADFR), and digital finance risk control (DFRC) have a direct impact on FSK. These skills are essential for attaining FG.

Suggested Citation

  • Lilis Ardini & Mochammad Fahlevi & Mochamad Dandi & Olivia Putri Dahlan & Sahara Putri Dahlan, 2024. "Digital Financial Literacy and Its Impact on Financial Skills and Financial Goals in Indonesia’s Digital Payment Ecosystem," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 7, pages 181-199.
    • Handle: RePEc:bas:econst:y:2024:i:7:p:181-199
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    More about this item

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • G02 - Financial Economics - - General - - - Behavioral Finance: Underlying Principles
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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