Digital financial literacy is an emerging concept that refers to the ability to effectively use digital tools, platforms, and services to manage personal finances. While previous studies have explored the behavioral effects of digital financial literacy, less is known about its broader well-being implications for financial consumers. In this study, we aim to examine the association between digital financial literacy and life satisfaction in a developed country context. Digital financial literacy was measured using a multidimensional scale that encompasses financial knowledge, digital literacy, digital financial service awareness, practical know-how of digital financial services, and self-protection against digital financial fraud. Using data of 1615 Korean adults who currently use digital financial services, this study estimated a series of regressions linking life satisfaction to digital financial literacy and covariates. The results showed a significant association between digital financial literacy and life satisfaction, with self-protection against fraud being the most influential subdimension. Notably, financial knowledge was not associated with life satisfaction when other dimensions of digital financial literacy were independently included in the regression models. These findings highlight the importance of digital skills and knowledge in navigating digital financial services. They also emphasize the need for targeted policies, financial education initiatives, and consumer protection measures to address the lack of digital financial literacy among marginalized populations.

This study examines whether digital financial literacy influences the adoption of digital financial services and whether users benefit from them. Drawing on the related literature, digital financial literacy is defined as a composite construct of financial knowledge and four domains of digital literacy related to digital finance (digital knowledge, awareness of digital financial services, practical know-how of digital financial service operations, and self-protection from digital scams and fraud). Using data from 1552 adults in South Korea, this study employs a series of regression analyses and instrumental variable techniques to estimate the associations between digital financial literacy and digital financial service adoption and benefits. The results show that digital financial literacy is associated with a higher likelihood of adopting digital platforms for banking, loans, stock investing, insurance, utility payments, and credit card management, as well as using a greater number of digital financial services overall. Further analyses indicate that digital financial literacy predicts improved access to financial services via digital platforms, receiving fee waivers or discounts, and receiving customized information, such as payment reminders and financial product recommendations. When the subdimensions of digital financial literacy were modeled separately, the effects of digital literacy were generally greater than those of financial knowledge. These findings highlight the prominent role of digital financial literacy in promoting financial inclusion in the digital age and its benefits for financial consumers. Policymakers and educators should provide educational programs that teach both theoretical knowledge and practical skills related to digital finance, while regulators incentivize financial service providers to create more inclusive digital financial environments.

As digital financial services (DFS) become increasingly important in personal financial management, understanding their implications for individual well‐being is critical. Although prior research has focused on financial inclusion and digital finance access, less is known about the mechanisms through which DFS influence broader well‐being outcomes. This study examines the relationship between DFS use, financial well‐being, and life satisfaction, with financial well‐being conceptualized as a mediating factor. Data were drawn from a sample of 1552 Korean adults aged 25–59 who completed an online survey and provided valid responses for analysis. Financial well‐being was assessed with the Consumer Financial Protection Bureau's financial well‐being scale, and life satisfaction was measured using Cantril's ladder and the feeling thermometer. Mediation analyses reveal that DFS use is positively associated with financial well‐being, which in turn significantly influences life satisfaction. Importantly, the relationship between DFS use and life satisfaction is fully mediated by financial well‐being, with no significant direct effect once financial well‐being is accounted for. This mediation pathway is driven primarily by transactional DFS—such as mobile banking, payments, and credit card management—rather than investment‐oriented DFS. These findings suggest that the well‐being benefits of DFS arise from the ways digital services enable individuals to manage routine financial matters more effectively. This study highlights the importance of designing inclusive DFS platforms that enhance financial well‐being as a pathway to improving life satisfaction.