Abstract:
This study examines the influence of Digital Financial Tools (DFTs) on the financial well-being of students at Bahria University, specifically addressing budgeting behavior, investment attitudes, financial stress, and socio-economic factors. With the growing integration of financial technology into everyday life, digital financial tools such as mobile wallets, digital banking applications, and budgeting platforms provide students with enhanced methods for efficient financial management. The study employs a mixed-methods approach, integrating survey data from 290 students with in-depth qualitative interviews to examine patterns of DFT usage and their outcomes. Structural Equation Modeling (SEM) indicated that the use of DFT significantly improves students' budgeting and saving habits (β = 0.43), enhances investment attitudes (β = 0.39), and decreases financial stress (β = -0.48), subsequently contributing positively to their overall financial well-being (β = 0.37). Moderation analysis indicated that the stress-reducing benefits of DFTs are particularly significant for students from lower-income households. Qualitative insights corroborated these findings, emphasizing students' enhanced financial confidence, trust in mobile applications such as Easypaisa, JazzCash, Ufone Microfinance Banking and other Banking digital transactions through Applications, and a heightened sense of financial independence amongs students of Bahria University. This study adds to the existing body of work on digital financial literacy and behavioral finance within emerging economies. This study offers practical implications for universities, Fintech developers, and policymakers seeking to enhance student financial resilience via inclusive digital solutions. This study demonstrates a significant correlation between DFT engagement and enhanced financial well-being, providing evidence-based recommendations for improving student financial health in the digital era.
