PERSONAL FINANCIAL MANAGEMENT BEHAVIOR USING DIGITAL PLATFORMS AND ITS DOMAINS

Abstract

Personal Finance Management (PFM) is crucial to control money to ensure that people have a comfortable present as well as secure future. It’s important for every individual to manage his finance digitally in the digital age. This study aims to identify the main dimensions of PFM from literature review and empirically test the impact of its each domain on the overall Digitalized Financial Management Behavior (DFMB). Also, the study verified the psychometric properties of the tool used to measure Personal Financial Management Behavior (PFMB) using digital platforms. The questionnaire was online administrated using Google forms among 388 young adults in the National Capital Territory (NCT) of India. The Kaiser–Meyer–Olkin (KMO) test of sampling adequacy and Bartlett’s test, linearity assessment, data screening were done in International Business Machines Statistical Package for Social Sciences (IBM SPSS). Factor analysis was done for unidimensionality assessment, bootstrapping (5000 resamples), and reliability and validity statistics in SmartPLS. The study identified six key dimensions of PFM from the existing significant literature and empirically verified the psychometric properties of the instrument in digital context. The resultant instrument includes 25 items under the six constructs. The study found that spending, credit management, saving behavior, personal cash management, investment and insurance are theoretically and empirically important determinants of PFM practices using digital platform therefore more attention need to be paid to these determinants for promoting sound DFMB.