The Dual Lens: Unveiling the Dynamics of Financial and Digital Literacy in Financial Decision Making

Amelina Apricia Sjam


As individuals increasingly engage in the digital economy, it is crucial for them to have a basic understanding of both financial and digital literacy, just as they require proficiency in using digital devices and managing digital financial transactions. Consequently, there arises a necessity to redefine the concept of financial literacy within digital context. The redefinition of financial literacy demands a comprehensive, multidimensional approach, which is the focal point of this study. Two distinct indices are developed in this research to delineate traditional financial literacy from digital literacy and scrutinise their impact on the development of resilience-enhancing financial behaviour in youths. The empirical evidence presented in this study underscores the significance of financial and digital literacy. Individuals with higher financial literacy demonstrate a higher likelihood of saving, especially in formal financial institutions. Additionally, the study reveals a correlation between financial and digital literacy and an increased propensity to invest and participate in financial assets, in contrast to participation in real assets, which is not influenced by financial and digital literacy. These findings hold substantial policy implications, suggesting that a dual focus on financial and digital literacy is essential when designing digital-adapted financial education programmes to enhance individuals’ long-term financial resilience.


Asset portfolio choice; digital literacy; financial decision-making; financial inclusion; financial literacy

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