Digital Financial Literacy and Financial Well-being: The Mediating Role of Impulsivity, Self Control and Financial Behavior

Authors

  • Mirna Medita Endikasari Faculty of Economics and Business, Universitas Sebelas Maret
  • Atmaji Atmaji Faculty of Economics and Business, Universitas Sebelas Maret

DOI:

https://doi.org/10.38035/dijemss.v7i3.6073

Keywords:

Digital Financial Literacy, Financial Well-being, Impulsivity, Selfcontrol, Financial Behavior

Abstract

Digital financial service innovations have become part of people's financial lives, especially among the younger generation. However, increased access to digital financial services has not been matched by adequate literacy, which ultimately impacts individuals' financial well-being. This study analyzes the influence of digital financial literacy, impulsivity, self-control, and financial behavior on the financial well-being of millennials in Java. In this study, digital financial literacy is treated as a multidimensional construct consisting of digital financial knowledge, experience, and skills. This study assesses how these three dimensions of digital financial literacy influence impulsivity, self-control, and financial behavior, as well as how these psychological factors contribute to financial well-being, including the mediating role they play. Applying a quantitative approach with Structural Equation Modelling (SmartPLS), data from 310 respondents were analyzed. The results show that all dimensions of digital financial literacy reduce impulsivity and increase self-control and financial behavior. Self-control and financial behavior are proven to improve financial well-being, while impulsivity has no significant effect. In addition, self-control and financial behavior mediate the relationship between digital financial literacy and financial well-being, while impulsivity does not play a mediating role. These findings conclude that good digital literacy shapes more disciplined financial management patterns, thereby improving the financial well-being of the millennial generation.

References

Abdallah, W., Tfaily, F., & Harraf, A. (2025). The impact of digital financial literacy on financial behavior: Customers’ perspective. Competitiveness Review: An International Business Journal, 35(2), 347–370. https://doi.org/10.1108/CR-11-2023-0297

Abdurrahman, A., & Nugroho, D. A. (2024). The role of digital financial literacy on financial well-being with financial technology, financial confidence, financial behavior as intervening and sociodemography as moderation. Jurnal Ekonomi dan Bisnis, 27(2), 191–220. https://doi.org/10.24914/jeb.v27i2.11891

Aryan, L. A., Alsharif, A., Alquqa, E. K., Al Ebbini, M. M., Alzboun, N., Alshurideh, M. T., & Al-Hawary, S. I. S. (2024). How digital financial literacy impacts financial behavior in Jordanian millennial generation. International Journal of Data and Network Science, 8(1), 117–124. https://doi.org/10.5267/j.ijdns.2023.10.011

Asosiasi Fintech Indonesia. (2024). Annual Members Survey 2024. https://fintech.id/id/knowledge-hub/aftech-annual-members-survey-2024-bahasa-indonesia

Bai, R. (2023). Impact of financial literacy, mental budgeting and self-control on financial wellbeing: Mediating impact of investment decision making. PLOS ONE, 18(11), e0294466. https://doi.org/10.1371/journal.pone.0294466

Bhat, S. A., Lone, U. M., SivaKumar, A. K., & Krishna, U. M. G. (2025). Digital financial literacy and financial well-being - evidence from India. International Journal of Bank Marketing, 43(3): 522–548. https://doi.org/10.1108/IJBM-05-2024-0320

Choung, Y., Chatterjee, S., & Pak, T.-Y. (2023). Digital financial literacy and financial well-being. Finance Research Letters, 58, 104438. https://doi.org/10.1016/j.frl.2023.104438

Cooper, D. R., & Schindler, P. S. (2014). Business Research Methods (12th ed.). McGraw-Hill Education.

Dew, J., & Xiao, J. J. (2011). The financial management behavior scale: Development and validation. Journal of Financial Counseling and Planning, 22(1), 43–59. https://ssrn.com/abstract=2061265

Gathergood, J. (2012). Self-control, financial literacy and consumer over-indebtedness. Journal of Economic Psychology, 33(3), 590–602. https://doi.org/10.1016/j.joep.2011.11.006

Hair et.al (2021). Partial Least Squares Structural Equation Modeling ( PLS-SEM) Using R.

Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate Data Analysis (7th ed.). Pearson Education

Jhonson, B., Andriani, R., Noviana, I., Tamara, D., (2023). The influence of digital financial literacy on financial well-being through spending, saving, and investment behavior in Indonesia. Journal of Business Studies and Management Review, 6(2), 157–1688. https://doi.org/10.22437/jbsmr.v6i2.24793

Katauke, T., Fukuda, S., Khan, M. S. R., & Kadoya, Y. (2023). Financial literacy and impulsivity: Evidence from Japan. Sustainability, 15(9), 7267. https://doi.org/10.3390/su15097267

Kim, K. T., Anderson, S. G., & Seay, M. C. (2019). Financial Knowledge and Short-Term and Long-Term Financial Behaviors of Millennials in the United States. Journal of Family and Economic Issues, 40(2), 194–208. https://doi.org/10.1007/s10834-018-9595-2

Kumar, P., Pillai, R., Kumar, N., & Tabash, M. I. (2023). The interplay of skills, digital financial literacy, capability, and autonomy in financial decision making and well-being. Borsa Istanbul Review, 23(1), 169–183. https://doi.org/10.1016/j.bir.2022.09.012

Kumar, J., Rani, V., Rani, G., & Sarker, T. (2023). Determinants of the financial wellbeing of individuals in an emerging economy: An empirical study. International Journal of Bank Marketing, 41(4), 860–881. https://doi.org/10.1108/IJBM-10-2022-0475

Muat, S., Fachrurrozi, F., & Sari, N. (2024). How do digital financial literacy, financial behavior, and skills affect financial well-being? An exploratory study on Gen Z. International Journal of Business Economics, 8(1), 728–744. https://doi.org/10.33019/ijbe.v8i1.851

Mustikasari, A., & Septina, F. (2018). Pengaruh impulsive buying terhadap pengelolaan keuangan pribadi mahasiswa. Jurnal Ekonomi dan Bisnis, 21(2), 145–158. https://doi.org/10.29407/jae.v8i2.20179

Nurkholik, A. (2024). R approach in digital financial literacy influence subjective financial well-being. Revista Mexicana de Economía y Finanzas, 19(1), 1–20. https://doi.org/10.21919/remef.v19i1.935

Otoritas Jasa Keuangan. (2024). Survei Nasional Literasi dan Inklusi Keuangan (SNLIK) Tahun 2024. https://ojk.go.id

Powell, R., Do, A., Gengatharen, D., Yong, J. and Gengatharen, R. (2023), “The relationship between responsible financial behaviours and financial wellbeing: the case of buy-now-pay-later”. Accounting and Finance, Vol. 63 No. 4, pp. 4431-4451, doi: 10.1111/acfi.13100

Prakash, N., Alagarsamy, S., & Hawaldar, A. (2022). Demographic characteristics influencing financial wellbeing: A multigroup analysis. Managerial Finance, 48(9/10), 1334–1351. https://doi.org/10.1108/MF-09-2021-0466

Sekścińska, K., Rudzinska-Wojciechowska, J., & Jaworska, D. (2021). Self-control and investment choices. Journal of Behavioral Decision Making, 34(3), 1-15. https://doi.org/10.1002/bdm.2236

Setiawan, M., Effendi, N., Santoso, T., Dewi, V. I., & Sapulette, M. S. (2020). Digital financial literacy, current behavior of saving and spending and its future foresight. Economics of Innovation and New Technology, 31(4), 320–338. https://doi.org/10.1080/10438599.2020.1799142

She, L., Ma, L., Voon, M. L., & Lim, A. S. S. (2023). Excessive use of social networking sites and financial well-being among working millennials: A parallel-serial mediation model. International Journal of Bank Marketing, 41(1), 158–178. https://doi.org/10.1108/IJBM-04-2022-0172

She L, Waheed H, Lim WM, E-Vahdati S (2023), "Young adults' financial well-being: current insights and future directions". International Journal of Bank Marketing, Vol. 41 No. 2 pp. 333–368, doi: https://doi.org/10.1108/IJBM-04-2022-0147

Strömbäck, C., Lind, T., Skagerlund, K., Västfjäll, D., & Tinghög, G. (2017). Does self-control predict financial behavior and financial well-being? Journal of Behavioral and Experimental Finance, 14, 30–38. https://doi.org/10.1016/j.jbef.2017.04.002

Tahir, M. S., Ahmed, A. D., & Richards, D. W. (2021). Financial literacy and financial well-being of Australian consumers: A moderated mediation model of impulsivity and financial capability. International Journal of Bank Marketing, 39(7), 1377–1394. https://doi.org/10.1108/IJBM-09-2020-0490

Tan, T.-L., Lu, M.-P., & Kosim, Z. (2025). The mediating effect of digital financial inclusion on gender differences in digital financial literacy and financial well-being: Evidence from Malaysian households. Investment Management and Financial Innovations, 22(1), 11–24. http://dx.doi.org/10.21511/imfi.22(1).2025.02

Downloads

Published

2026-02-25

How to Cite

Endikasari, M. M., & Atmaji, A. (2026). Digital Financial Literacy and Financial Well-being: The Mediating Role of Impulsivity, Self Control and Financial Behavior. Dinasti International Journal of Education Management and Social Science, 7(3), 3182–3193. https://doi.org/10.38035/dijemss.v7i3.6073

Issue

Vol. 7 No. 3 (2025): Dinasti International Journal of Education Management and Social Science (February - March 2026)

Section

Articles

License

Copyright (c) 2026 Mirna Medita Endikasari, Atmaji Atmaji

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Authors who publish their manuscripts in this journal agree to the following conditions:

  1. The copyright on each article belongs to the author(s).
  2. The author acknowledges that the Dinasti International Journal of Education Management and Social Science (DIJEMSS) has the right to be the first to publish with a Creative Commons Attribution 4.0 International license (Attribution 4.0 International (CC BY 4.0).
  3. Authors can submit articles separately, arrange for the non-exclusive distribution of manuscripts that have been published in this journal into other versions (e.g., sent to the author's institutional repository, publication into books, etc.), by acknowledging that the manuscript has been published for the first time in the Dinasti International Journal of Education Management and Social Science (DIJEMSS).