A Study On The Role Of Financial Literacy On The Financial Well-Being Of Individuals, With Financial Self-Efficacy Being A Mediator

Abstract

The Financial industry has evolved so drastically that it requires to change and act in different and new ways with complex financial products in the market. And due to this, Financial Literacy, Financial Self-Efficacy and Financial Well-Being are considered as integral aspects of Personal Finance and Overall Well-Being. Thus, the objective of this study is to find out whether Financial Self-Efficacy plays a Mediating role between Financial Literacy and Financial Well-Being or not. The study adopts a Questionnaire Survey to collect information from 170 Gujarat state respondents. The sampling technique employed was Non-Probability Convenience Sampling. The initial testing about the Demographic Data was conducted using MS-Excel and SPSS. And to satisfy the objective of the research, the testing was done using PLS-SEM as it is the tool that is used to conduct the Path Analysis to find out whether there is a Mediating Effect of Financial Self-Efficacy between Financial Literacy and Financial Well-Being. The results indicated that there was a full mediation of Financial Self-Efficacy between Financial Literacy and Financial Well-Being. This study demonstrated the need of considering not just people's understanding of their financial information but also their confidence in using it. Encouraging individuals to take control of their financial futures by fostering financial self-efficacy and financial literacy can boost financial resilience and prosperity.