Study Finds Digital Literacy Key to Sound Financial Behavior Across All Ages (Image supported by ChatGPT)
SEOUL, June 30 (Korea Bizwire) — As smartphones and online platforms become the dominant gateway to financial services, a new academic study has found that digital transaction literacy is the most crucial skill for sound personal financial management—outweighing traditional financial knowledge or attitudes.
According to research by Professor Yang Se-jung’s team at Sangmyung University, published in the latest issue of the Journal of Consumer Policy Studies, digital competency—defined as the ability to effectively use mobile banking apps, online payment systems, and discern trustworthy online content—has a statistically significant impact on financial health scores across all age groups, from people in their 20s to seniors over 70.
The study analyzed data from 4,000 Korean financial consumers, based on a dataset developed by the Korea Consumer Agency in 2022. Researchers assessed how three factors—financial knowledge, financial attitudes, and digital transaction literacy—influenced individuals’ “financial soundness” scores, which measured behaviors such as saving, budgeting, insurance choices, and investment decisions.
The findings revealed that while financial knowledge and attitudes had variable effects depending on age, digital transaction skills consistently improved financial health across demographics. For instance:
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Financial knowledge had a positive impact only among consumers in their 20s and 60s.
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Financial attitudes were influential mostly among those in their 30s and over 50.
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But digital competency was a universal predictor of responsible financial behavior, regardless of age.
Digital Competency Now Most Crucial Skill for Smart Financial Decisions (Yonhap)
Digital transaction literacy encompasses not only the use of financial apps, but also the ability to distinguish between real and promotional content online and resolve issues in digital financial environments.
Yang’s team attributes the growing importance of digital skills to the rapid digitization of financial services, where everything from loans to pension management is now conducted through mobile interfaces. With younger and older consumers alike relying on apps and online advice via social media and messengers, digital proficiency has become the “core strength” enabling sound financial choices.
The study concludes by urging expanded digital literacy education for all age groups, with tailored programs for older adults and digitally marginalized populations to bridge the growing gap in financial empowerment.
Ashley Song (ashley@koreabizwire.com)
