Impact of Financial Literacy and Self-Control on Financial Well-Being: A Mediating Role of Financial Behavior

Abstract

The study intends to investigate the impact of financial literacy and self-control on the financial well-being of individuals in a developing country like Pakistan, where we are facing certain peripheral issues such as a dense youth population and feeble financial outreach of the community.   Henceforth, having substantial youth and the inability of the formal financial sector to cope with their growing needs the need of making rational financial decision making becomes imperative for the individual's well-being. Precisely, we have highlighted the relationship and effect of financial literacy and self-control on the financial well-being of university students through the mediating role of financial behavior. Furthermore, the data was collected through a modified questionnaire comprising 26 items. The results of the study affirm the importance of financial behavior and financial literacy on the financial well-being of individuals particularly, university dealing youth.The outcomes of the study suggested that financial literacy is important for human well-being, henceforth, the study should be done at a wider scale by including the most sophisticated psychological constructs in the measuring scale.