Financial literacy in the digital economy and its impact on financial decision-making

The way people access, administer, and use financial services has changed dramatically as a result of the growing digitisation of financial institutions. The capacity to comprehend and utilise digital financial instruments like online banking, mobile payments, digital wallets, and fintech platforms is part of financial literacy in the digital age, which goes beyond simple financial understanding. The purpose of this study is to investigate how financial literacy affects personal financial decision-making in the digital age. Both primary and secondary data served as the foundation for the study. While secondary data came from published research articles, regulatory agency reports, and official publications, primary data came from a structured questionnaire given to a sample of respondents who represented a range of age groups, educational backgrounds, and income levels. To evaluate the connection between digital financial literacy and financial decision-making, the study uses correlation analysis, mean scores, percentage analysis, and descriptive statistics. The results show that people with higher degrees of digital financial literacy are more confident when using digital financial services, have superior financial planning skills, disciplined saving habits, and make well-informed investment choices. On the other hand, people who lack financial literacy are more susceptible to making bad financial decisions, falling victim to online fraud, and using financial products inefficiently. The research emphasises how important digital financial literacy is for advancing financial security, financial inclusion, and general economic well-being. In order to promote equitable and sustainable economic growth, it also emphasises the necessity of comprehensive financial education programs and legislative actions aimed at improving digital financial literacy.