Does Financial Behavior Influence Financial Well-being?

Journal of Asian Finance, Economics, and Business (JAFEB), ISSN: 2288 – 4637, Vol 8 (2), pp. 273-280. doi:10.13106/jafeb.2021.vol8.no2.0273

8 Pages Posted: 26 Mar 2021 Last revised: 27 Mar 2021

See all articles by Dr. K. Riyazahmed

Dr. K. Riyazahmed

SDM Institute for Management Developement

Date Written: January 26, 2021

Abstract

Financial behavior and financial well-being are two closely related aspects of an individual’s financial decision-making. This study attempts to investigate the extent to which financial behavior influences financial well-being in the Indian scenario. The data is collected using a structured questionnaire from a sample of 150 respondents. The study employs Financial Management Behaviour Scale (FMBS) (Dew & Xiao, 2012) to measure financial behavior. Factor analysis and multiple regression are performed to find the influence of financial behavior on financial well-being. The findings of the study suggest that except for credit commitment all the other behavioral factors like future security, savings and investments, credit indiscipline, and financial consciousness have a significant impact on the financial well-being of an individual in the Indian scenario. The regression coefficients of financial well-being are strongly determined by financial consciousness. The study is a contribution to the existing behavioral studies literature and the model used identifies the factors that influence the financial well-being in the Indian scenario. The study is conducted during the year 2020, so the results could have been influenced by the economic scenario of the period. The results of the study can be used by financial advisors to understand the financial well-being in the Indian scenario.

Keywords: Financial Behavior, Financial Well-being, Financial Literacy, Emerging Economy, India

JEL Classification: G51, G53, E21, G41

Suggested Citation

Ahmed, Riyaz, Does Financial Behavior Influence Financial Well-being? (January 26, 2021). Journal of Asian Finance, Economics, and Business (JAFEB), ISSN: 2288 – 4637, Vol 8 (2), pp. 273-280. doi:10.13106/jafeb.2021.vol8.no2.0273 , Available at SSRN: https://ssrn.com/abstract=3812952

Riyaz Ahmed (Contact Author)

SDM Institute for Management Developement ( email )

No. 1 Chamundi Hill Road
Sidharthnagar
Mysore, Karnataka 570011
India
9790548895 (Phone)

HOME PAGE: http://https://www.sdmimd.ac.in/riyazahmed

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