Psychological beliefs and financial well-being among working adults: the mediating role of financial behaviour
International Journal of Social Economics
ISSN: 0306-8293
Article publication date: 21 October 2021
Issue publication date: 12 January 2022
Abstract
Purpose
This study aimed to assess the impact of psychological beliefs (subjective financial knowledge, financial attitude and locus of control) on financial well-being, as well as the mediating role of financial behaviour in the relationship between psychological beliefs and financial well-being among working adults in Malaysia.
Design/methodology/approach
A survey-based questionnaire was used to elicit information from a total of 500 working adults from Malaysia. Partial least squares structural equation modelling (PLS-SEM) was used to assess the measurement model and the proposed mediation model.
Findings
The results showed that subjective financial knowledge, financial attitude and locus of control have a positive impact on both financial behaviour and financial well-being. The results also showed that financial behaviour mediates the relationships between financial attitude and financial well-being, as well as between locus of control and financial well-being.
Originality/value
Given the anticipated global economic recession, a better understanding of how individuals manage their finances becomes ever more crucial. The findings from this research inform policymakers, practitioners and academics on the importance of psychological factors and financial management practices on financial well-being, addressing an identified gap in the current literature.
Keywords
Acknowledgements
The authors would like to express their gratitude to the participants who participated in this study.
Competing interests: The authors did not have any competing interests in the work.
Citation
She, L., Rasiah, R., Turner, J.J., Guptan, V. and Sharif Nia, H. (2022), "Psychological beliefs and financial well-being among working adults: the mediating role of financial behaviour", International Journal of Social Economics, Vol. 49 No. 2, pp. 190-209. https://doi.org/10.1108/IJSE-07-2021-0389
Publisher
:Emerald Publishing Limited
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