DIGITAL FINANCIAL LITERACY AND PERCEIVED FINANCIAL WELL-BEING AMONG INDIAN ADOLESCENTS AND YOUNG ADULTS: THE IMPORTANCE OF FINANCIAL CAPABILITY AND RESILIENCE

To understand the pathway for achieving financial well-being in the present era of digital financial services, the present study aims to examine the role of financial capabilities and resilience in the association between digital financial literacy and perceived financial well- being. We used judgment sampling to collect data from 201 adolescents and young adults aged 15 to 34 years (n=187, 93%) in India who are experienced users of digital financial services. Structural equation modelling (PLS-SEM) is used to test the hypotheses. Findings reveal that financial capability and financial resilience completely and serially mediate the association between digital financial literacy and perceived financial well-being. The results imply that building financial capability and resilience against unexpected financial shocks can develop a sense of financial security and freedom that eventually contributes to financial well-being. Thus, this study provides a roadmap to achieving perceived financial well-being in the digital realm by integrating and synergizing digital financial literacy with financial capability and financial resilience.