Digital financial literacy and consumer financial behavior in emerging markets: Evidence from Indonesia

This study examines the impact of digital financial literacy on the shopping and saving behaviors of Indonesian millennials, with a focus on both current practices and future financial intentions. As digital financial services proliferate in emerging markets, understanding their influence on consumer financial decision-making is increasingly vital. A quantitative approach using Structural Equation Modeling was employed to analyze data collected from 226 purposively selected Generation Z respondents (aged 17–27) residing in Yogyakarta. All participants actively use e-wallets, mobile banking, and fintech applications, and have prior experience with digital shopping and saving. The methodology ensured sample relevance and construct validity. Data were processed using LISREL 8.8 and SPSS 0.25. The findings reveal that higher levels of digital financial literacy significantly enhance strategic financial behavior, promoting responsible spending and consistent saving in both present and future contexts. Unlike prior research that emphasized financial inclusion, this study contributes to the literature by directly linking digital literacy with specific financial behaviors. The results highlight the need for targeted financial education to strengthen digital capabilities among youth. Practical implications are offered for educators, policymakers, and financial service providers to foster sustainable financial well-being among millennials in Indonesia and comparable developing economies.