IMPACT OF FINANCIAL LITERACY ON FINANCIAL WELL-BEING: MEDIATING ROLE OF FINANCIAL ATTITUDE

Abstract

The primary aim of this article is to assess the influence of financial literacy on financial wellbeing while investigating the mediating role of financial attitude. Both financial literacy and financial wellbeing are treated as multidimensional concepts within this study. Additionally, the research examines how financial attitude functions as a mediator pertaining to the connection or relationship existing between financial literacy and financial well-being. To gather data, a questionnaire was employed, and a sample of 150 employed individuals was chosen through the utilization of a simple random sampling (SRS) approach. In order to establish the reliability of the measurement scales, a confirmatory factor analysis was performed, while hypothesis testing was conducted using structural equation modeling. The examination of mediation was executed through the application of a 95% confidence interval percentile bootstrap technique. This study revealed that financial literacy significantly influences financial wellbeing. Furthermore, the influence of financial literacy on one's financial wellbeing was found to be partly mediated by financial attitude.