Digital Payments and Financial Resilience amo...

Digital Payments and Financial Resilience among Students: A Behavioural Finance Perspective

Author Name : Rejila Merin Mathew

ABSTRACT The increasing adoption of digital payments has transformed students' financial behaviours, influencing spending habits, budgeting, and financial resilience. While digital transactions offer convenience, they also pose risks such as impulsive spending and financial mismanagement. This study examines the impact of digital payments on students' financial resilience from a behavioural finance perspective using a survey-based empirical approach. Data collected from students aged 17–25 were analysed using descriptive and correlation methods to assess the relationship between digital payment adoption, impulsive spending, and savings behaviour. The findings indicate that while digital payments enhance transactional ease, they also contribute to financial instability, with a strong positive correlation (0.75) observed between impulsive spending and overspending, and a moderate correlation (0.59) between savings decline and overspending. Additionally, 50% of students reported not reviewing their transaction history before making purchases, increasing their susceptibility to financial mismanagement. The study underscores the need for enhanced financial literacy to mitigate the risks associated with digital payments, emphasizing the importance of educational interventions that promote responsible spending habits and long-term financial stability among students.