Digital Financial Literacy, Risk Aversion, and College Students’ Online Security Behavior

The emergence of financial technology, coupled with the recent Covid-19 pandemic, has resulted in the rapid expansion of digital financial services and products that are accessed and delivered through digital channels. However, such technology has also exposed digital consumers to online security risks. College students have been considered vulnerable to online security risks. Digital financial literacy (DFL) refers to knowing how to use devices to safely access financial products and services via digital channels in ways that help consumers achieve their financial goals, protect against financial harm, and enhance the ability to know where to get help. Research is lacking in understanding how DFL impacts online security behavior. This study employs a survey method to investigate how DFL affects college students’ online security intentions and the mediating role of risk aversion on the relationship between DFL and online security intentions. With a sample of 92 college students, we found college students’ online security intentions are positively correlated with both DFL and risk aversion. In the mediation analyses, we found DFL only affects online security intentions indirectly through risk aversion. Our findings have implications for academia and college education.