Factors Influencing Financial Behaviour of Youths through the Perspective of Information-Motivation-Behavioural Skills Model

Abstract

The issue of the financial instability and distress of the younger generation has raised vast concern among different stakeholders. Better financial behaviour (FB) is required to ensure the financial well-being and also achieve the financial goals. Although the factors that influence the FB have been extensively studied from different perspectives. However, there are limited studies that have explored the factors of FB based on the lens of information-motivation-behavioural skills (IMB) model. Besides, the mediating role of the FinTech self-efficacy (FSE) is also deficient. Therefore, this study explored the factors that affect the FB of the youths from the perspective of the IMB model. To achieve the objectives of the study, 474 usable responses were gathered through purposive sampling. The result of partial least squares-structural equation modelling showed that FSE is significantly impacted by financial knowledge (FKN), professional financial advice (PFA) and financial attitudes (FAT), while the FB is significantly affected by FKN, FAT and FSE. Besides, the mediating role of the FSE on the influences of predictors on FB was also verified in the study. These findings offer some vital implications as they not only extend the existing understanding of the FB, but they also provide necessary information for stakeholders in nurturing the healthy FB.