In today's Indian economy, there has been a radical change from physical currency transactions to an advanced digitized payment system. As a result of this phenomenon, the common financial transactions done by adolescent students in Tier-2 cities like Bikaner have radically changed. This paper will discuss the effect of digital payments and mobile wallets on the transaction frequency, discretionary spending level, and psychological awareness of adolescents aged 15-19 years. Using the quantitative and cross-sectional survey research method, data was collected from 200 adolescent students using stratified convenience sampling and structured questionnaire. The theories used in the analysis include "pain of paying," and "spendception" that discusses the psychological ease and emotional disconnect when conducting the transactions using digital payments. In the independent sample t-test (t = 14.215), it was found that there is a statistically significant difference in the frequency of low-value shopping, where the mean of UPI users (14.65) is significantly different from that of cash users (8.92). The findings show that the lack of physical money as the reference point creates a "micro spend trap" for impulsive spending. These research results have shown the existence of a major “knowledge-behavior gap” among digital native children and stress the importance of ensuring that the NEP 2020 is revised to incorporate digital financial resilience as an essential life skill.