Modelling Financial Behaviour in the Digital Era: An SEM Approach to Knowledge,Anxiety and Digital Literacy

Abstract

Determinants of financial behaviour have increasingly attracted scholarly interest as financial advancement and digitalization have been growing. Whereas good financial decisions have been associated with good financial literacy, new studies have provided insights into the significance of accounting psychological aspects and digital skills to elucidate financial performance. This article evaluates the implications of objective, subjective and digital financial literacy and financial anxiety on financial behaviour as well as satisfaction. Listing 400 digitally engaged people as a sample analysed with the help of structural equation modelling and AMOS 26, a structured questionnaire was carried out using verified reliability and validity assessments. The positive predictors of financial behaviour were digital financial literacy, objective knowledge and subjective knowledge. The financial anxiety conditioned a poor effect on financial capacities and emotional state. Financial literacy partially mediated the association between financial anxiety and financial behaviour in digitally motivated situations. There was a significant gender moderation effect of this relationship, with negative associations between females, but no significant effect of age. Cognitive, emotional and digital integration further develop the behavioural finance theory and promote the financial health of everyone in a changing economic environment.

Keywords

Financial Behaviour Digital Financial Literacy Financial Anxiety Behavioural Finance Subjective Knowledge

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