How Financial Literacy Impacts Financial Well-Being: The Influence of Financial and Technical Efficacy


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Authors

  • Naznin Sultana Chaity School of Business, Ahsanullah University of Science and Technology, Bangladesh,
  • Shahriar Bin Kabir Graduate Student, Department of Economics, Jahangirnagar University; Bangladesh,
  • Parul Akhter School of Business, Ahsanullah University of Science and Technology; Bangladesh,
  • Rifat Parveen Bokhari School of Business, Ahsanullah University of Science and Technology; Bangladesh.

DOI:

https://doi.org/10.32479/ijefi.15806

Keywords:

Financial Literacy, Financial Well-being, Technical Efficacy, Financial self-efficacy.

Abstract

The fundamental human resource that influences financial well-being is financial literacy. People are more likely to save and invest if they understand the time value of money, credit, insurance, and investments. Having a sound financial understanding lessens stress and increases financial well-being. This study used a structured survey questionnaire and back-translated it into Bangla to ease readability for the respondents. Four hundred thirty-five invitations were sent mainly to the Dhaka city dwellers’ and only 253 complete responses were retained for analysis. Partial least squares structural equation modeling (PLS-SEM) is used to assess the intercorrelations and validate the measurement model among the constructs (financial attitude, behavior, knowledge, self-efficacy, technological self-efficacy, and financial well-being) using SmartPLS version 4. The result found a full mediation effect among financial behavior, financial self-efficacy, and financial well-being. Partial mediation effects are found among financial attitudes toward financial self-efficacy, technological self-efficacy, and financial well-being.

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Published

2024-03-18

How to Cite

Chaity, N. S., Kabir, S. B., Akhter, P., & Bokhari, R. P. (2024). How Financial Literacy Impacts Financial Well-Being: The Influence of Financial and Technical Efficacy. International Journal of Economics and Financial Issues, 14(2), 207–217. https://doi.org/10.32479/ijefi.15806

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Articles