Digital Financial Literacy and Hyperbolic Discounting: Evidence from Japanese Investors

This study investigates the relationship between digital financial literacy (DFL) and hyperbolic discounting among 104,993 active securities account holders in Japan. As digital financial services expand rapidly, individuals increasingly require not only traditional financial knowledge but also the capacity to understand digital platforms, evaluate online financial information, and manage emerging technological risks. Using data from the 2025 wave of the Survey on Life and Money, hyperbolic discounting is measured through intertemporal monetary choice scenarios, while DFL is constructed as a multidimensional index encompassing digital knowledge, financial knowledge, service awareness, attitudes, behaviors, practical capability, and protection against digital fraud. Probit regression results reveal a statistically significant negative association between DFL and hyperbolic discounting, indicating that individuals with stronger digital financial competencies are less likely to exhibit hyperbolic discounting. Attitudinal components of DFL exhibit the strongest effects, suggesting that internalized financial beliefs may play a more decisive role than technical knowledge in promoting time-consistent decision-making. Subsample analyses further highlight gender-differentiated patterns in demographic and economic influences on present bias. These findings contribute to behavioral finance by integrating digital capability into intertemporal choice research and provide policy-relevant implications for designing comprehensive financial education and digital literacy initiatives in increasingly digitalized financial environments.