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

Naznin Sultana Chaity, Shahriar Bin Kabir, Parul Akhter and Rifat Parveen Bokhari
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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.

International Journal of Economics and Financial Issues, 2024, vol. 14, issue 2, 207-217

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.

Keywords: Financial Literacy; Financial Well-being; Technical Efficacy; Financial self-efficacy. (search for similar items in EconPapers)
JEL-codes: G4 G51 G53 (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (1)

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