Digital competencies and their influence on the financial behaviour of Ukrainian households amid economic transformation

Abstract

The article examines the relationship between levels of financial and digital literacy and the financial behaviour of Ukrainian households in the context of contemporary economic challenges. The authors highlight the growth in the financial literacy index (from 11.6 points in 2018 to 12.3 points in 2021), which puts Ukraine on a par with Central and Eastern European countries. At the same time, it has been established that access to the Internet has a significant impact on economic well-being: households with Internet access have higher incomes, and the correlation coefficient between these parameters is more than 0.96, which indicates a strong direct relationship. The article reveals the concept of digital financial literacy as an integrated competence that includes the ability to search for, process and apply information about financial products, use modern financial technologies and adequately assess digital risks. Key competencies (such as cybersecurity, information processing, and innovative use of fintech) confirmed by international and domestic research are highlighted. Based on statistical data analysis, the authors show that improving households' digital and financial literacy promotes informed decision-making, reduces financial vulnerability and improves quality of life. A systematic set of recommendations is developed: from self-education through digital services to integrated educational programmes covering different age and social categories. The article will be useful for researchers of economic behaviour, policymakers, representatives of financial institutions and educational institutions.