Reframing Financial Literacy for the Twenty-First Century: Foundations, Digital Transformations, and Pathways to Sustainable Empowerment

Abstract

Over the last two decades, financial literacy has emerged as a central determinant of economic wellbeing, social inclusion, and individual empowerment (Tavares et al., 2020). Once conceptualized primarily as a cognitive skill involving basic numeracy and knowledge of financial products, financial literacy has evolved into a multidimensional construct encompassing behavioural, digital, and ethical dimensions (Santos et al., 2022). In the context of globalization, technological acceleration, and increasing economic complexity, the capacity to make informed financial decisions has become indispensable not only for personal financial management but also for sustainable development and collective resilience (Vieira et al., 2024). This transformation reflects not only changes in global financial systems but also the digitalisation of everyday life, which has blurred the boundaries between financial and technological capabilities.