The links between digital financial behaviour, digital financial literacy, and financial well-being: Generation X vs. Millennials in Malaysia

Based on the Theory of Planned Behaviour and Net Valence Model, this paper investigates the determinants of digital financial behaviour (DFB) and its influence on financial well-being (FWB), with digital financial literacy (DFL) as a moderator. It further explores generational differences between Gen X (born between 1965 and 1980) and Millennials (born between 1981 and 1996) in Malaysia using Multi-group Analysis (MGA). Data were collected via a survey from August to October 2024 using stratified and purposive sampling, yielding 1121 valid responses (629 Millennials; 492 Gen X). Partial Least Squares Structural Equation Modelling (PLS-SEM) was applied for analysis. Results reveal that Millennials are motivated by informational and economic benefits, while Gen X values transactional benefits such as time-saving and convenience. Security risks significantly influence DFB for both cohorts, whereas financial and privacy risks are less influential. Subjective norms influence DFB across generations, but perceived behavioural control is stronger for Gen X. Attitudes do not significantly impact DFB for either group. DFB positively impacts FWB, implying that effective digital financial management enhances well-being. DFL strengthens this relationship among Millennials, suggesting that higher digital literacy leads to better financial outcomes. However, for Gen X, the moderation effect is insignificant. This study contributes to the literature by integrating two theories, the TPB and NVM, to examine generational differences in DFB between Millennials and Gen X, while exploring the moderating role of DFL. The findings highlight the need for targeted financial education emphasising DFL among younger cohorts to optimise the benefits of digital finance for long-term financial well-being.