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Investigating Youth Happiness: The Interplay of Financial Self-Efficacy, Behavior, and Satisfaction

Author

Listed:
  • Barbić Dajana

    (PhD Associate Professor Faculty of Economics and Business University of Zagreb Croatia)

  • Palić Irena

    (Phd Associate Professor Faculty of Economics and Business University of Zagreb Croatia)

  • Balabanić Ivan

    (Senior Research Associate Institute for migration research Trg Stjepana Radića 3, 10000 Zagreb Croatia)

Abstract

This study examines the interplay of financial self-efficacy, financial behavior, financial satisfaction, and life satisfaction of young individuals using Psychological Capital Theory (PCT). Analyzing data from 970 high school and university students in Croatia using structural equation modeling, we find that higher financial self-efficacy positively influences financial behavior. Additionally, responsible financial behavior significantly enhances financial satisfaction, which in turn boosts life satisfaction. Our results indicate a partial mediation effect of financial satisfaction between financial self-efficacy and life satisfaction. The study suggests incorporating behavioral interventions in financial education programs to increase self-efficacy and financial capability perceptions among youth. These interventions have the potential to improve financial behavior and overall happiness among young individuals. These insights are valuable for educational policymakers, financial advisors, planners, psychologists, and behavioral researchers. Effective financial education programs can thus contribute to enhancing youth satisfaction by focusing on increasing financial self-efficacy and responsible financial behavior.

Suggested Citation

  • Barbić Dajana & Palić Irena & Balabanić Ivan, 2026. "Investigating Youth Happiness: The Interplay of Financial Self-Efficacy, Behavior, and Satisfaction," South East European Journal of Economics and Business, Sciendo, vol. 21(2), pages 19-36.
    • Handle: RePEc:vrs:seejeb:v:21:y:2026:i:2:p:19-36:n:1002
    DOI: 10.2478/jeb-2026-0008
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    References listed on IDEAS

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    2. Adele Atkinson & Flore-Anne Messy, 2012. "Measuring Financial Literacy: Results of the OECD / International Network on Financial Education (INFE) Pilot Study," OECD Working Papers on Finance, Insurance and Private Pensions 15, OECD Publishing.
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    Keywords

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    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • G53 - Financial Economics - - Household Finance - - - Financial Literacy
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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