Correlational Study of Financial Literacy in the Digital Age
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Authors
Gauss, Jennifer
Issue Date
2025-10
Type
Dissertation
Language
en
Keywords
FInancial Literacy , Digital Financial Literacy , Financial education
Alternative Title
Abstract
The problem to be addressed in this study is the noticeable gap in financial literacy, particularly in the rapidly evolving context of the digital age. The purpose of this quantitative correlation analysis was to examine the relationship between financial literacy knowledge, financial literacy training, digital technology understanding, percentage of digital transactions made, and financial wealth. The research addresses a growing concern: while digital financial tools are widely used, many individuals lack the foundational knowledge and behavioral awareness needed to navigate them effectively, which impacts financial well-being and may contribute to impulsive spending, financial anxiety, and limited long-term planning. Drawing on Human Capital Theory and behavioral economics, the study employed a quantitative correlational design, collecting data from 66 U.S. participants aged 18–28 who manage their own finances. Multiple regression analysis revealed that financial literacy knowledge is the most significant predictor of financial wealth. Digital trust also played a meaningful role, suggesting that confidence in digital platforms may influence financial literacy. Notably, the high use of digital transactions was negatively associated with financial wealth, indicating a possible link to impulsive financial behavior. In contrast, financial literacy training yielded only a moderate impact, with one indicator showing modest significance. These findings suggest that financial education requires a reset: rather than focusing solely on tools like budgeting apps or digital payment systems, education should also emphasize developing steady financial habits and greater awareness of emotional influences such as anxiety and impulsiveness. To fully capture these dynamics, future research should adopt a longer-term perspective and consider mixed-methods approaches that integrate both quantitative patterns and qualitative insights.