Digital Financial Literacy and Life Satisfaction: Evidence from South Korea
Digital financial literacy is an emerging concept that refers to the ability to effectively use digital tools, platforms, and services to manage personal finances. While previous studies have explored the behavioral effects of digital financial literacy, less is known about its broader well-being im...
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MDPI AG
2025-01-01
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| Series: | Behavioral Sciences |
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| author | Youngjoo Choung Tae-Young Pak Swarn Chatterjee |
| author_facet | Youngjoo Choung Tae-Young Pak Swarn Chatterjee |
| author_sort | Youngjoo Choung |
| collection | DOAJ |
| description | Digital financial literacy is an emerging concept that refers to the ability to effectively use digital tools, platforms, and services to manage personal finances. While previous studies have explored the behavioral effects of digital financial literacy, less is known about its broader well-being implications for financial consumers. In this study, we aim to examine the association between digital financial literacy and life satisfaction in a developed country context. Digital financial literacy was measured using a multidimensional scale that encompasses financial knowledge, digital literacy, digital financial service awareness, practical know-how of digital financial services, and self-protection against digital financial fraud. Using data of 1615 Korean adults who currently use digital financial services, this study estimated a series of regressions linking life satisfaction to digital financial literacy and covariates. The results showed a significant association between digital financial literacy and life satisfaction, with self-protection against fraud being the most influential subdimension. Notably, financial knowledge was not associated with life satisfaction when other dimensions of digital financial literacy were independently included in the regression models. These findings highlight the importance of digital skills and knowledge in navigating digital financial services. They also emphasize the need for targeted policies, financial education initiatives, and consumer protection measures to address the lack of digital financial literacy among marginalized populations. |
| format | Article |
| id | doaj-art-19b5b6f65e3b477e87e11a4074687c3e |
| institution | Kabale University |
| issn | 2076-328X |
| language | English |
| publishDate | 2025-01-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Behavioral Sciences |
| spelling | doaj-art-19b5b6f65e3b477e87e11a4074687c3e2025-01-24T13:22:53ZengMDPI AGBehavioral Sciences2076-328X2025-01-011519410.3390/bs15010094Digital Financial Literacy and Life Satisfaction: Evidence from South KoreaYoungjoo Choung0Tae-Young Pak1Swarn Chatterjee2Department of Consumer Science, Inha University, Incheon 22212, Republic of KoreaDepartment of Consumer Science and Convergence Program for Social Innovation, Sungkyunkwan University, Seoul 03063, Republic of KoreaDepartment of Financial Planning, Housing and Consumer Economics, University of Georgia, Athens, GA 30602, USADigital financial literacy is an emerging concept that refers to the ability to effectively use digital tools, platforms, and services to manage personal finances. While previous studies have explored the behavioral effects of digital financial literacy, less is known about its broader well-being implications for financial consumers. In this study, we aim to examine the association between digital financial literacy and life satisfaction in a developed country context. Digital financial literacy was measured using a multidimensional scale that encompasses financial knowledge, digital literacy, digital financial service awareness, practical know-how of digital financial services, and self-protection against digital financial fraud. Using data of 1615 Korean adults who currently use digital financial services, this study estimated a series of regressions linking life satisfaction to digital financial literacy and covariates. The results showed a significant association between digital financial literacy and life satisfaction, with self-protection against fraud being the most influential subdimension. Notably, financial knowledge was not associated with life satisfaction when other dimensions of digital financial literacy were independently included in the regression models. These findings highlight the importance of digital skills and knowledge in navigating digital financial services. They also emphasize the need for targeted policies, financial education initiatives, and consumer protection measures to address the lack of digital financial literacy among marginalized populations.https://www.mdpi.com/2076-328X/15/1/94digital financial literacydigital financial capabilitydigital financial inclusionfinancial literacylife satisfaction |
| spellingShingle | Youngjoo Choung Tae-Young Pak Swarn Chatterjee Digital Financial Literacy and Life Satisfaction: Evidence from South Korea Behavioral Sciences digital financial literacy digital financial capability digital financial inclusion financial literacy life satisfaction |
| title | Digital Financial Literacy and Life Satisfaction: Evidence from South Korea |
| title_full | Digital Financial Literacy and Life Satisfaction: Evidence from South Korea |
| title_fullStr | Digital Financial Literacy and Life Satisfaction: Evidence from South Korea |
| title_full_unstemmed | Digital Financial Literacy and Life Satisfaction: Evidence from South Korea |
| title_short | Digital Financial Literacy and Life Satisfaction: Evidence from South Korea |
| title_sort | digital financial literacy and life satisfaction evidence from south korea |
| topic | digital financial literacy digital financial capability digital financial inclusion financial literacy life satisfaction |
| url | https://www.mdpi.com/2076-328X/15/1/94 |
| work_keys_str_mv | AT youngjoochoung digitalfinancialliteracyandlifesatisfactionevidencefromsouthkorea AT taeyoungpak digitalfinancialliteracyandlifesatisfactionevidencefromsouthkorea AT swarnchatterjee digitalfinancialliteracyandlifesatisfactionevidencefromsouthkorea |