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

Naukhaiz Chaudhry (naukhaiz_g786@msn.com), Waheed Akhter (drwaheed@cuilahore.edu.pk) and David Roubaud (d.roubaud@montpellier-bs.com)
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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

Economics Bulletin, 2024, vol. 44, issue 1, 190 - 210

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.

Keywords: Financial Literacy; Financial Wellbeing; Personality Traits; Credit Card Behaviour (search for similar items in EconPapers)
JEL-codes: C1 G1 (search for similar items in EconPapers)
Date: 2024-03-30
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