The Impact of the Digital Economy on Household Finance: A Mechanism Analysis Based on the Baumol-Tobin Model

With the development of the digital economy and the emergence of digital financial products, some traditional theories of monetary demand face challenges in explaining current financial environments. Emerging digital financial tools and models within the digital economy have effectively alleviated traditional conflicts, impacting financial products, consumer behavior, corporate marketing strategies, and government policies on a wide scale. Regarding financial products, new digital financial products continually challenge traditional ones, while simultaneously creating new opportunities. Consumer behavior has also shifted, with lower psychological barriers leading to impulsive consumption and decreased savings rates. In response, companies should leverage this trend by enhancing corporate efficiency through data-driven precision marketing and by utilizing various digital financial products to support financing, thereby creating better investment opportunities and improving profitability. At the same time, governments face challenges such as data misuse by corporations, leading to discriminatory pricing, and insufficient regulation of emerging financial products, resulting in financial risks. To address these issues, governments should adopt measures such as strengthening data protection legislation, drawing on international financial regulatory frameworks, and improving credit systems to respond to these challenges actively, achieving a win-win for economic and social benefits.