This study examines the impact of digital finance on household consumption behavior in China using panel data from the China Family Panel Studies (2012–2020) and the Digital Financial Inclusion Index developed by Peking University. Employing a fixed-effects regression model, the research finds that digital finance significantly increases overall household consumption and shifts expenditure patterns toward discretionary spending. The analysis reveals that this effect is more pronounced among urban, high-income, and high-asset households. Additionally, the study identifies the level of digitization as a key driver, particularly influencing essential categories such as food. These findings offer empirical insights into how financial technology shapes consumption behavior and highlight implications for inclusive economic policy in digitally transforming societies.