Financial Literacy and Investment Decisions in the Digital Era: The Mediating Effect of Peer Influence and the Moderating Effect of Financial Status
Keywords:
Financial Literacy, Digital Financial Literacy, Behavioural Financial Literacy, Financial Status, Peer Influence, Investment DecisionAbstract
Financial literacy has become a critical determinant of investment decision-making in the rapidly evolving digital financial environment. While traditional financial literacy focuses on knowledge of budgeting, saving, and investing, emerging perspectives emphasize the importance of digital financial literacy and behavioural financial literacy in enabling individuals to make informed investment choices. This study proposes a comprehensive framework to examine the influence of digital financial literacy and behavioural financial literacy on investment decisions, considering peer influence as a mediating variable and financial status as a moderating variable. Grounded in the Theory of Planned Behaviour, the framework explains how financial knowledge, behavioural tendencies, social interactions, and economic conditions collectively shape investment behaviour. The study addresses existing research gaps by distinguishing between digital and behavioural dimensions of financial literacy and integrating both social and structural factors into a unified model. The proposed framework is expected to provide valuable theoretical and practical insights for policymakers, financial educators, digital financial service providers, and investors by promoting informed investment behaviour, financial inclusion, and long-term financial well-being in the digital economy.
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