Digital Fluency and its Impact on Financial Management: Pathways to Future Security and Stress Mitigation

This study aims to examine the effects of Current Money Management Stress (CMMS) and Expected Future Financial Security (EFFS) on Financial Stress (FS) and its impact on Financial Behaviour (FB), with Digital Knowledge (DK) as a moderating factor. Conducted with 312 participants using random sampling and PLS-SEM analysis, the study found a meaningful relationship between digital knowledge and financial behaviour, highlighting that digital literacy directly influences financial actions. Greater digital knowledge enables more advanced financial behaviour, such as proficient use of online banking and investment platforms. However, digital knowledge alone was not a significant predictor of financial stress levels, indicating that digital proficiency does not directly reduce financial stress. The research also revealed a strong link between current money management stress and overall financial stress, emphasizing the significant impact of managing current finances on financial well-being, managing day-to-day finances significantly affects overall financial stress, as observed through the strong relationship between CMMS and FS. Furthermore, a positive outlook on future financial security was associated with beneficial financial behaviour, suggesting that optimism about financial future encourages prudent financial practices. The study also found that current financial management stress influences financial behaviour, potentially leading to more cautious or poor financial choices under stress. The indirect relationship between CMMS, financial stress, and financial behaviour suggests that the effect of money management stress on behaviour is partially mediated by financial stress, indicating that stress alters financial behaviour indirectly rather than directly.