Financial literacy,digital finance literacy and financial
independence among women.
Financial literacy:
• Financial literacy is the ability to understand and effectively use
various financial skills including personal ,financial management ,
budgeting and investing.
• When you are financially literate you have the essential foundation
for a smart relationship with money .
• The earlier you start to become financial literate the better off you
will be because education is the key to a successful financial future
.
Digital financial literacy
• Digital financial literacy is defined as acquiring the knowledge skills
confidence and competencies to safely use digital delivered financial
products and services to make informed financial decisions and act
in one's best financial interest for individual economic and social
circumstances.
• Digital financial literacy combines the skills needed to navigate
financial services with the skills to use digital technologies.
• This includes understanding online banking using financial software
navigating mobile payment system and recognising cyber security
risk associated with online financial activities.
Financial independence among women
• Financial independence among women refers to the ability of
movement to support themselves financially without reliance on
others typically through earned income investment or savings.
• This concept is increasingly recognised as important for gender
equalit y empowerment and personal fulfilment .
• Increasing awareness of the importance of financial literacy is helping
women make informed decisions about budgeting , investing , and
managing debt .Various social programs are available to enhance
financial education.
Relationship between financial literacy and digital financial
Literacy
Interrelationship
1. Financial literacy provides the foundation knowledge necessary for
effective digital financial literacy for instance understanding interest
rates on compounding in vital when using digital platforms for
saving on investing.
2. A key component of digital financial literacy is the ability to use
technology for personal finance management .Individual need to
understand how to apply their financial knowledge through various
digital mediums such as budgeting apps or investing platforms.
3. As financial services migrate online individuals face new risk such as
identify theft , scams and complexities of online transactions.
Understanding these risk required ( both financial literacy to discern
good financial practices and ) digital financial literacy to (To
understand how to protect oneself in the digital space) .
4. Financial literacy helps individuals understand the long term effects
of spending and saving while digital financial literacy provides the
tools to track and manage these behaviours through digital methods
( example mobile banking apps that help budget and monitor
spending in the real time )
Relationship between financial literacy, digital financial literacy and
financial independence among women.
• Enhancing financial and digital Financial literacy among women is
essential for promoting financial independence empowering women
with both forms of literacy can lead to a better financial decisions
increased participation in the economy and overall improved quality
of life stakeholders including governments educational institutions
and financial services providers must prioritise initiatives the target
improving financial literacy in access to digital tools among women.
• Financial literacy equips women with the knowledge to make
informed decisions , while digital financial literacy provides them with
the tools to implement those decisions in today's tech drive and
economy.
Conclusion
• As financial markets involves and digital transactions become
more prevalent the importance of both financial literacy and
digital financial literacy grows they are complementary skills that
empower individuals to make informed financial decisions use
technology effectively and navigate the increasingly complex
financial landscape enhancing both forms of literacy is essential
for promoting economic wellbeing and ensuring that individuals
can participate in fully in the digital economy.
• Financial and digital financial literacy contribute directly to
financial independence women who are financially literate are
more likely to save investment plan for retirement with
strengthens their financial standing digital tools can enhance their
ability to achieve the independence by providing convenient
access to information and resources
