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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, Econjournals, 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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    1. 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, Econjournals, vol. 14(2), pages 207-217, March.

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    More about this item

    Keywords

    Financial Literacy; Financial Well-being; Technical Efficacy; Financial self-efficacy.;
    All these keywords.

    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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