Age-Wise Analysis of Digital Financial Literacy: Evidence from India

Abstract

Digital financial literacy has become increasingly significant as digital financial services are widely used for payments, banking, savings, investment, and other financial activities. The effective use of these services requires both financial understanding and the ability to navigate digital platforms safely. This study examines the age-wise distribution of digital financial literacy in India using secondary data from the Mid-Term Evaluation of the National Strategy for Financial Education 2020-2025. The original survey used descriptive and exploratory research designs and a stratified sampling technique. The target population in the original survey comprised individuals aged between 12 and 80 years from rural and urban areas across the East, West, North, South, Central, and North-East regions of India. The present study adopts a descriptive research design and examines digital financial literacy through three dimensions reported in the data source: digital financial knowledge, digital financial behaviour, and digital financial attitude. The study reveals that digital financial literacy is unevenly distributed across age groups, with varying strengths and weaknesses in digital financial knowledge, behaviour, and attitude. The findings suggest that younger individuals exhibit stronger digital financial knowledge but lower behaviour and attitude, indicating that exposure to technology may not translate into stronger overall digital financial literacy. Middle-aged people exhibit higher digital financial literacy, whereas older individuals exhibit relatively lower levels, reflecting a persistent age-based digital divide within the country's rapidly growing digital financial system. Based on the findings, the study suggests that mere access to digital financial services is not sufficient; programmes and strategies should be developed to address the unique needs of different age groups and improve digital financial capabilities for meaningful and effective inclusion.