The Influence of Digital Financial Literacy in Enhancing Financial Management and Entrepreneurial Engagement among South African University Graduates
Keywords:
Financial behaviour; financial inclusion; FinTech adoption; ICT-enabled entrepreneurship; technology acceptanceAbstract
Digital financial literacy is essential for effective financial management and entrepreneurial success in the modern economy. This study examines the role of digital financial literacy in enhancing financial management and entrepreneurship among university graduates in South Africa. Using a quantitative research design, data were collected from 120 South African graduates aged 21 to 35 via an online questionnaire with an eleven-item structured scale. Descriptive and regression analyses were used to assess the relationships among digital literacy, financial behavior, and entrepreneurship. Digital financial literacy significantly improves financial decision-making, expense management, and entrepreneurial activities. Regression analysis confirms that digital financial literacy is a strong predictor of entrepreneurial engagement (β = 0.677, p < 0.001), accounting for 45.9% of the variance (R² = 0.459). The findings highlight a critical gap in preparing graduates to participate in digital finance and entrepreneurial success. The study recommends integrating digital financial education into higher education and national skills development to equip graduates with essential skills for the digital economy. The implication of these findings is to bridge the gap in financial literacy among graduates. Hereby, ensuring that graduates are well-equipped with financial literacy knowledge before venturing into the workforce.
References
Adel, N. (2024). The impact of digital literacy and technology adoption on financial inclusion in Africa, Asia, and Latin America. Heliyon, 10(24), e40951. https://doi.org/10.1016/j.heliyon.2024.e40951
Agarwal, S., & Ann, T. C. (2024). Personal Finance Applications of Fintech. In H. K. Baker, G. Filbeck & K. Black (Eds.), The Emerald Handbook of Fintech (pp. 235-248). Emerald Publishing Limited. https://doi.org/10.1108/978-1-83753-608-520241029
Ahmed, R., Shaheen, S., & Philbin, S. P. (2022). The role of big data analytics and decision-making in achieving project success. Journal of Engineering and Technology Management, 65, 101697. https://doi.org/10.1016/j.jengtecman.2022.101697
Alqam, M. A., & Hamshari, Y. M. (2024). The impact of financial literacy on financial inclusion for financial well-being of youth: evidence from Jordan. Discover Sustainability, 5(1), 528. https://doi.org/10.1007/s43621-024-00704-6
Bushra, & Mir, M. A. (2024). Digital Financial Literacy and Financial Well-Being. In D. Singh, R. Bansal, S. Gupta & Y. Ansari (Eds.), Emerging Perspectives on Financial Well-Being (pp. 57-73). IGI Global. https://doi.org/10.4018/979-8-3693-1750-1.ch003
Carè, R., Boitan, I. A., Stoian, A. M., & Fatima, R. (2025). Exploring the landscape of financial inclusion through the lens of financial technologies: A review. Finance Research Letters, 72, 106500. https://doi.org/10.1016/j.frl.2024.106500
Charles, L., Xia, S., & Coutts, A. P. (2022). Digitalization and employment: A review. I. L. Organization. https://www.ilo.org/sites/default/files/wcmsp5/groups/public/@ed_emp/documents/publication/wcms_854353.pdf
Chen, A., Lin, Y., Mariani, M., Shou, Y., & Zhang, Y. (2023). Entrepreneurial growth in digital business ecosystems: an integrated framework blending the knowledge-based view of the firm and business ecosystems. The Journal of Technology Transfer, 48(5), 1628-1653. https://doi.org/10.1007/s10961-023-10027-9
Choung, Y., Chatterjee, S., & Pak, T.-Y. (2023). Digital financial literacy and financial well-being. Finance Research Letters, 58, 104438. https://doi.org/10.1016/j.frl.2023.104438
Dabbous, A., Barakat, K. A., & Kraus, S. (2023). The impact of digitalization on entrepreneurial activity and sustainable competitiveness: A panel data analysis. Technology in Society, 73, 102224. https://doi.org/10.1016/j.techsoc.2023.102224
Dobrovolska, O., & Rozhkova, M. (2024). The Impact of Digital Transformation on the Anti-Corruption and Cyber-Fraud System. Business Ethics and Leadership, 8(3), 231-252.
Ferilli, G. B., Palmieri, E., Miani, S., & Stefanelli, V. (2024). The impact of FinTech innovation on digital financial literacy in Europe: Insights from the banking industry. Research in International Business and Finance, 69, 102218. https://doi.org/10.1016/j.ribaf.2024.102218
Gertze, L., & Petersen, F. (2024). Factors influencing the acceptance and use of a South African online bank. South African Journal of Information Management, 26(1), 1-11. https://doi.org/10.4102/sajim.v26i1.1759
Halbouni, S. S., Obeid, N., & Garbou, A. (2016). Corporate governance and information technology in fraud prevention and detection. Managerial Auditing Journal, 31(6/7), 589-628. https://doi.org/10.1108/MAJ-02-2015-1163
Hu, Z., Ding, S., Li, S., Chen, L., & Yang, S. (2019). Adoption Intention of Fintech Services for Bank Users: An Empirical Examination with an Extended Technology Acceptance Model. Symmetry, 11(3), 340. https://www.mdpi.com/2073-8994/11/3/340
Indrawati, A. (2021). Digital financial literacy, and financial technology: Case studies of faculty of economics University 17 August 1945 Samarinda. DiE: Jurnal Ilmu Ekonomi Dan Manajemen, 12(1), 1-10.
Javaid, M., Haleem, A., Singh, R. P., & Sinha, A. K. (2024). Digital economy to improve the culture of industry 4.0: A study on features, implementation and challenges. Green Technologies and Sustainability, 2(2), 100083. https://doi.org/10.1016/j.grets.2024.100083
Kou, G., & Lu, Y. (2025). FinTech: A literature review of emerging financial technologies and applications. Financial Innovation, 11(1), 1-34. https://doi.org/10.1186/s40854-024-00668-6
Kumar, P., Pillai, R., Kumar, N., & Tabash, M. I. (2023). The interplay of skills, digital financial literacy, capability, and autonomy in financial decision making and well-being. Borsa Istanbul Review, 23(1), 169-183. https://doi.org/10.1016/j.bir.2022.09.012
Lakshmi, Y. (2024). The Impact of Artificial Intelligence on Financial Literacy ShodhKosh: Journal of Visual and Performing Arts, 5(5), 8–28. https://doi.org/10.29121/shodhkosh.v5.i5.2024.1606
Li, C., Ning, G., Xia, Y., Guo, K., & Liu, Q. (2022). Does the Internet Bring People Closer Together or Further Apart? The Impact of Internet Usage on Interpersonal Communications. Behav Sci (Basel), 12(11). https://doi.org/10.3390/bs12110425
Li, J., & Lee, V. W. Y. (2024). Thriving through transitioning: unravelling the interplay of transitional challenges and adjustments into university. Higher Education Research & Development, 1–15. https://doi.org/10.1080/07294360.2024.2401016
Liu, H. S., Cheah, K. S. L., & Leong, S. (2023). Leading Generation Z’s Financial Literacy Through Financial Education: Contemporary Bibliometric and Content Analysis in China. SAGE Open, 13(3), 21582440231188308. https://doi.org/10.1177/21582440231188308
Lone, U. M., & Bhat, S. A. (2024). Impact of financial literacy on financial well-being: a mediational role of financial self-efficacy. Journal of Financial Services Marketing, 29(1), 122-137. https://doi.org/10.1057/s41264-022-00183-8
Lusardi, A. (2019). Financial literacy and the need for financial education: evidence and implications. Swiss journal of economics and statistics, 155(1), 1-8. https://doi.org/0.1186/s41937-019-0027-5
Lyons, A. C., & Kass-Hanna, J. (2021). A methodological overview to defining and measuring “digital” financial literacy. Financial Planning Review, 4(2), e1113. https://doi.org/10.1002/cfp2.1113
Mancone, S., Tosti, B., Corrado, S., Spica, G., Zanon, A., & Diotaiuti, P. (2024). Youth, money, and behavior: the impact of financial literacy programs [Review]. Frontiers in Education, 9. https://doi.org/10.3389/feduc.2024.1397060
Menberu, A. W. (2024). Technology-mediated financial education in developing countries: a systematic literature review. Cogent Business & Management, 11(1), 2294879. https://doi.org/10.1080/23311975.2023.2294879
Mpangeva, L., & De Braine, R. (2024). The transition from graduate to professional: Developing a work identity. SA Journal of Human Resource Management, 22, a2785. https://doi.org/10.4102/sajhrm.v22i0.2785
Mullappallykayamkulath, M. A. (2022). Digital Financial Literacy and its Impact on the Financial Behaviour of Millennials: An Empirical Investigation. International Journal of Financial Management, 12(3), 10-16.
Mutya, T., & Ilankadhir, M. (2024). Does Digital Financial Literacy Matter for Current and Future Saving Behavior among Rural SME Entrepreneurs? Government Regulations Awareness as a Moderator. Theoretical and Practical Research in Economic Fields, 15(4), 939 - 951. https://doi.org/10.14505/tpref.v15.4(32).12
Nor, N. F., Saaidun, N. S. N., & Mohamad, N. (2024). Digital Financial Capability Towards Improving Entrepreneurial’s Business Performance. Journal of Accounting, Business and Management (JABM), 32(1), 91-99. https://doi.org/10.31966/jabminternational.v32i1.1465
Oehler, A., & Wendt, S. (2018). Trust and Financial Services: The Impact of Increasing Digitalisation and the Financial Crisis. In T. O. Sigurjonsson, D. L. Schwarzkopf & M. Bryant (Eds.), The Return of Trust? Institutions and the Public after the Icelandic Financial Crisis (pp. 195-211). Emerald Publishing Limited. https://doi.org/10.1108/978-1-78743-347-220181014
Ononiwu, M. I., Onwuzulike, O. C., & Shitu, K. (2024). The role of digital business transformation in enhancing organizational agility. World Journal of Advanced Research and Reviews, 23(3), 285-308.
Pratitrasari, K. R., & Yuhertiana, I. (2024). Pengaruh Digital Financial Literacy Terhadap Perilaku Keuangan Masyarakat Kota Gresik. El-Mal: Jurnal Kajian Ekonomi & Bisnis Islam, 5(11), 4529. https://doi.org/10.47467/elmal.v5i11.4207
Rahayu, R., Juita, V., Rahman, A., Fitriamiranti, S., & Rafles, R. (2022). The level of digital financial literacy and financial well-being of people in West Sumatra, Indonesia. Operations Management and Information System Studies, 2(2), 66-76.
Rehman, K., & Mia, M. A. (2024). Determinants of financial literacy: a systematic review and future research directions. Future Business Journal, 10(1), 75. https://doi.org/10.1186/s43093-024-00365-x
Respati, D. K., Widyastuti, U., Nuryati, T., Musyaffi, A. M., Handayani, B. D., & Ali, N. R. (2023). How do students’ digital financial literacy and financial confidence influence their financial behavior and financial well-being? Nurture, 17(2), 40-50. https://doi.org/10.55951/nurture.v17i2.154
Shrestha, N. (2021). Factor analysis as a tool for survey analysis. American journal of Applied Mathematics and statistics, 9(1), 4-11. https://doi.org/10.12691/ajams-9-1-2
Wijayanti, T. C., Naim, S., Hendayani, N., Alfiana, A., & Hanum, F. (2024). Identify the use of economics for family financial management in digital days. Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE), 7(1), 325-345.
Xie, Y., & Chen, T. (2025). A Study on the Impact of Digital Financial Literacy on Household Entrepreneurship—Evidence from China. Sustainability, 17(1), 117. https://www.mdpi.com/2071-1050/17/1/117
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Lilian Ifunanya Nwosu, Tajudeen John Ayoola, Calvin Mahlaule, Tlotlo Segotso
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
The author fully assumes the content originality and the holograph signature makes him responsible in case of trial.
