DIGITAL FINANCIAL LITERACY AND FINANCIAL RESILIENCE AMONG UNIVERSITY STUDENTS IN PAKISTAN: THE MEDIATING ROLE OF FINANCIAL SELF-EFFICACY

OBJECTIVE: This study aimed to determine the relation between Digital Financial Literacy with Financial Resilience and to investigate financial self-efficacy in the relation of both.Objective: To see the relationship between Digital Financial Literacy and Financial Resilience and to explain the relationship between both variables with financial self-efficacy. As for the method and research design, the positive approach was applied with deductive research and cross sectional design. The respondents included adult university students who had accessed at least one digital financial service during the past six months. Forty (400) valid responses were received. The hypothesized model was tested using partial least squares structural equation modeling (PLS-SEM) with 5000 bootstrap resample number. Contribution: The study identifies financial resilience (the ability to manage financial disruptions) as a different phenomenon from financial well-being, and the psychological process between digital skills and financial coping. The results indicated that perceived digital financial skills were significantly and positively related to the financial self-efficacy (β = .52); and significantly and positively related to the financial resilience (direct path, β = .23) based on the survey data obtained from 400 students. The indirect association via self-efficacy was also positive (β = .20, 95% CI [.15, .27]) which lent support to a complementary partial mediation path. Practical implications: The results can be used for the financial education in university, the protection of digital consumers and the aid for students.