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Financial literacy, personality traits and financial wellbeing: A preliminary evidence

Author

Listed:
  • Naukhaiz Chaudhry

    (COMSATS University Islamabad (Lahore Campus), University of Education, Lahore, Pakistan.)

  • Waheed Akhter

    (Center of Islamic Finance, COMSATS University Islamabad (Lahore Campus))

  • David Roubaud

    (Montpellier Business School)

Abstract

This paper explores how financial literacy and personality traits affect the financial wellbeing of individuals in the emerging economy of Pakistan. Using a structured questionnaire, Data were collected using online survey from 542 participants; 367 of the total responses were validated and analysed using Structural Equation Modeling (SEM). The direct impact of perceived and actual financial literacy on financial wellbeing is positively significant. Credit card behaviour partially mediates the relationship between financial literacy and financial wellbeing. The individuals' social relationships have shown a significantly positive impact on financial wellbeing, while emotional instability shows a significantly negative impact. This study offers insights for researchers, managers and policy makers to understand how financial wellbeing at the micro level can be increased by introducing effective financial literacy and personality training programs.

Suggested Citation

  • Naukhaiz Chaudhry & Waheed Akhter & David Roubaud, 2024. "Financial literacy, personality traits and financial wellbeing: A preliminary evidence," Economics Bulletin, AccessEcon, vol. 44(1), pages 190-210.
    • Handle: RePEc:ebl:ecbull:eb-22-00749
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Financial Literacy; Financial Wellbeing; Personality Traits; Credit Card Behaviour;
    All these keywords.

    JEL classification:

    • G1 - Financial Economics - - General Financial Markets
    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General

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