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

Author

Listed:
  • 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.)

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.

Suggested Citation

  • Naznin Sultana Chaity & Shahriar Bin Kabir & Parul Akhter & Rifat Parveen Bokhari, 2024. "How Financial Literacy Impacts Financial Well-Being: The Influence of Financial and Technical Efficacy," International Journal of Economics and Financial Issues, International Journal of Economics and Financial Issues, vol. 14(2), pages 207-217, March.
    • Handle: RePEc:eco:journ1:2024-02-22
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    References listed on IDEAS

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    2. Anandhi Elangovan & Manivannan Babu, 2024. "Decoding Users’ Continuance Intentions towards Digital Financial Platforms in the Indian Economy," International Review of Management and Marketing, International Review of Management and Marketing, vol. 14(6), pages 213-222, October.

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    Keywords

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    JEL classification:

    • G4 - Financial Economics - - Behavioral Finance
    • G51 - Financial Economics - - Household Finance - - - Household Savings, Borrowing, Debt, and Wealth
    • G53 - Financial Economics - - Household Finance - - - Financial Literacy

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