Measuring digital financial literacy : scale development and validation

Digital financial literacy is projected to become an increasingly significant part of education in the digital age, both in India and around the world. To create programs to raise the level of financial literacy among people in the digital age, it is essential to measure the level of digital financial literacy among various societal segments. The study aims to provide a validated tool for measuring the digital financial literacy of individuals in developing countries, like India and also to analyze the significance of its key dimensions. Also, the level of DFL among respondents in the National Capital Territory (India) was measured. The study adopted the widely used scale development paradigm provided by Churchill (1979). The empirical data was collected using two online surveys with 145 (N1) and 323 (N2) sample sizes, which were analyzed with factor analysis using International Business Machines (IBM) Statistical Package for Social Sciences (SPSS) and IBM SPSS Analysis of Moment Structures (AMOS) statistical software. The proposed digital financial literacy scale consists of twenty-two statements under five key aspects of digital financial literacy, which are: Digital Financial Risk and Control; Basic Digital Financial Knowledge; Advanced Digital Financial Knowledge; Digital Financial Attitude, and Digital Financial Behavior. The proposed Digital Financial Literacy Scale demonstrated sound psychometric properties, encouraging its future usage for assessing the digital financial literacy of individuals. Furthermore, it can help organizations and concerned authorities compare individuals' digital financial literacy levels pre- and post-implementation of Digital Financial Literacy Awareness campaigns.